Difference between lease option and lease purchase?

[The Real Deal 0]

I have been exchanging emails with a seller and here is what she wrote, "Do you specialize in lease options or lease purchases? Your previous emails seem to interchange the two terms as if they are the same, but the lease purchase obligates the buyer to buy the property at the end of the lease and the lease option does not obligate for them to buy at the end of the lease." I did a Google search and there are mixed answers, part of them say they are same others say that there is a difference. Which is correct?

[keiththedealmaker 0]

I have been exchanging emails with a seller and here is what she wrote, "Do you specialize in lease options or lease purchases? Your previous emails seem to interchange the two terms as if they are the same, but the lease purchase obligates the buyer to buy the property at the end of the lease and the lease option does not obligate for them to buy at the end of the lease." I did a Google search and there are mixed answers, part of them say they are same others say that there is a difference. Which is correct?

 

 

 

 

 

I use the 2 terms interchangeably as well, but the fact of the matter is is that your seller is correct! They're not the same. He gave a good explanation. He seems pretty knowledgeable, do you know if he's an investor? Agent?

[vballdarin 1]

I used to be one of those people who fervently said that they are not the same. But after learning more about it, trying to explain it to people on websites and over the phone, I've come to the same decision that MC does. They are basically the same thing. I guess you can look at it as though your putting it into Leman's terms because when you attach the scary "option" word...then you have to go into a dissertation about the whole process or using Owner Financing where people can go cross-eyed .....whereas the term "Lease Purchase" can encapsulate the general process and is less "scary".

 

Sometimes, I tend to use the analogy of a Band-Aid when people challenge me or ask me why I use the two phrases interchangeably. I tell them that when you get a cut or a boo-boo, you ask for a Band-Aid, when in fact, Band-Aid is the brand name for Johnson&Johnson's line of adhesive bandages that come in all shapes and sizes. Adhesive strips/bandages are just simply better known as a Band-Aid. How many times, after you see someone get a cut or a boo-boo, have you heard that person ask for a medicated adhesive strip? Yea....that's what I thought.

 

Are they exactly the same thing...No, thanks to that little "®" beside the name. But do people use the term interchangeably.....Yes.

 

Is it the best analogy to use? Maybe, maybe not......."We report, you decide."

 

Darin

[DrRE 0]

In my opinion they are different but I personally consider them the same for one simple reason, how can you force someone to purchase? You can't, you could sew I guess but still have an unsold property. Just think about it, in todays economy someone might lose their job and not be able to purchase. Herbster

[MichaelC 160]

Legally, they are different. One is an option to purchase, the other is an obligation to do so. But practically speaking and in the real world, there is no difference whatsoever. As has already been mentioned, how can you force someone to buy your house, regardless of the type of agreement? You can't, and a lawsuit would prove fruitless. The best the homeowner would end up with is a judgement against the other party. That's not going to get the property sold, and would have cost thousands of dollars in fees and months of aggravation.

[pilot76180 51]

They are different, although I use them interchangeably for a few reasons. There are actually a lot of things I will say to people that really mean something else....right to their faces...but it's all in your tone...HA!

[<Steve> 82]

They are different, although I use them interchangeably for a few reasons. There are actually a lot of things I will say to people that really mean something else....right to their faces...but it's all in your tone...HA!

Shameful

 

Some may say...I Lease Purchased my house with a Lease Option.

[randian 0]

That seller sounds like a pain in the ****. My experience is that you'll never strike a deal with a seller who fancies themselves an expert on our business. I've also never gotten a deal from a seller who asks lots of questions about lease-options and how they work. Perhaps I am uniquely lacking in skills.

[MichaelC 160]

That seller sounds like a pain in the ****. My experience is that you'll never strike a deal with a seller who fancies themselves an expert on our business. I've also never gotten a deal from a seller who asks lots of questions about lease-options and how they work. Perhaps I am uniquely lacking in skills.

randian, no, you're not lacking in skills. I, too, have the same attitude towards obnoxious sellers and my results are the same. Fortunately, there is no shortage of sellers who are more open and cooperative to what we are offering. I just move on and don't look back.