Posted by Brad Crouch on December 16, 1998 at 04:24:24:
There it is again! Rob mentioned lease options and you say “lease purchase”. I know that everybody seems to believe that these two terms are interchangeable, but I don’t see it that way at all. In fact, I see a BIG difference.
Lease option is a unilateral agreement where the seller is obligated to sell but the buyer is NOT obligated to buy.
Lease Purchase is a bilateral agreement where the seller is obligated to sell and the buyer is OBLIGATED to buy, at some point.
If you really mean “Lease Purchase”, then you cannot disagree with Rob as he is talking about something entirely different. Apples and Oranges.
A Lease Purchase would result in the realtor® receiving their full commission (sooner or later). Rob was talking about Lease Options where the realtor® may never see any commission from an actual “sale”.
I realize that the term “Lease Purchase” might be easier for a seller to swallow, since he has the impression that the buyer will actually HAVE to buy.
It’s real hard for me to accept that the interchangeable use of these two terms are anything other than a “slick” misrepresentation of the actual facts.
Now . . . with these two terms in mind, what is the “exact” status of the 4 “lease purchase” properties that you have on the market right now?
Just curious . . . nothing against you personally Justin, I’m just a little tired of seeing these terms used as meaning the same thing, when they clearly mean different things. At least to me.