Posted by TroyT on September 24, 2003 at 21:31:14:
The confusion occurs because many people refer to a Lease Option as a Lease Purchase. They mean Lease Option, just as Brent described. Usually, when they say Lease Purchase, they are referring (incorrectly) to a Lease Option.
A true Lease Purchase is a true Rent-to-Own. A bi-lateral agreement. Many would-be Lease Optioners have been caught in a Rent-to-own situation, believing that they could get out of their agreement if they didn’t want to buy. I’ve seen some Builders around this area catch some people in this inaccuracy (scam).
Posted by Brent_IL on September 24, 2003 at 19:23:23:
A lease is a lease is a lease.
An option is unilateral. The one giving the option, the optionor, has no choice but to fulfill the terms of the option agreement. The optionee doesn’t have to complete the contract; it’s his “option.”
A lease-purchaser has agreed to buy the property at the end of the lease period when he agreed to lease the property.
The lines get blurred when the L/P agreements contain contingencies and alternative terms. I like separate leases and purchase agreements held in trust.