What Is A Lease Option vs. Lease Purchase?
Sometimes you will hear these two terms used interchangeably yet they are not exactly one in the same. There is a key difference you need to be aware of. First, let’s talk about what an option is as it relates to lease options. It is the right to buy, but not an obligation, at a future date for a pre-determined price. So a lease with option to purchase is leasing a property with the right (option) to buy it at a later date. A lease purchase on the other hand is a lease with an obligation to buy. There in lies the rub. One carries no obligation to purchase the home while the other creates an obligation. Now that we have that out of the way, let’s look at how you can profit from lease options.
