Definition: An arrangement combining a lease with a binding agreement to purchase the property, subject to the contract's terms and contingencies.
Example
A buyer occupies a property as a tenant before the scheduled purchase closing.
Keep the distinction clear
A lease-purchase obligation differs from a lease option that merely permits a purchase. The label alone does not determine the parties' legal obligations; the actual documents control.
Related terms
Lease · Sale Contract · Bilateral Contract
Keep studying
References: FREC Course II syllabus, Session 11
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