What is the difference between a purchase agreement and a lease agreement in commercial real estate?

In commercial real estate in Delaware, a purchase agreement and a lease agreement are two different ways to acquire real estate. A purchase agreement is a legally binding contract between the buyer and seller of real estate. It details the terms and conditions of the sale, including the purchase price, payment terms, and the buyer’s rights and responsibilities. Once both parties agree and sign off on the purchase agreement, the buyer pays the agreed-upon purchase price and takes title to the property. On the other hand, a lease agreement is a contract between the tenant and the landlord that spells out the rights and responsibilities of each party. This agreement generally states the amount of rent that must be paid, the duration of the lease term, what services the landlord will provide (such as utilities) and what modifications the tenant can make to the property. Unlike a purchase agreement, no ownership of the property changes hands; the tenant simply pays rent to the landlord to use the space. In summary, a purchase agreement is a legally binding agreement that transfers the title of ownership of a property from one party to another, while a lease agreement is a legally binding agreement that grants a tenant the right to use a property for a specific period of time in exchange for rent.

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What is the difference between a purchase agreement and a lease agreement in commercial real estate?

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