Lease-Purchase Law and Legal Definition
Lease-purchase is an agreement to buy a particular piece of property within a certain time-frame, usually at a price determined beforehand. In some cases, the process for determining the future price is agreed to between the buyer and seller and will be implemented at some future date. For example, the future price may be determined by an independent, licensed real estate appraiser, paid for by either party or jointly, before the expiration of the lease period. A lease-purchase agreement is a legally binding commitment to buy the property. It differs from a lease-option, which is merely a right to buy a property, that may be exercised on certain terms. With a lease-option the tenant has the right, but not the obligation, to purchase the property.