If you’re considering a rent-to-own contract, you may wonder what the difference is between a lease option and a lease-purchase agreement. While these terms are sometimes used interchangeably, they’re technically two different types of rent-to-own agreements. In this article, we’re going to explore some key differences between lease option and lease-purchase agreements, how to tell which one is right for you, and some potential benefits and drawbacks of each. Lease Option Agreements With a lease option agreement, the tenant/buyer has the OPTION to purchase the property at a set price during or at the end of the lease term. This option is typically granted in exchange for an up-front fee (option consideration) paid to the landlord/seller. The key word here is “option.” A lease option gives the tenant/buyer the right to purchase the property if they so choose, but they’re not obligated to do so. If at the end of … Continued

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