What is the difference between a lease with option to purchase and an option to purchase?

Lease with option to purchase and an option to purchase are both contractual agreements related to real estate. In Delaware, these contracts are subject to residential real estate law. A lease with option to purchase is a contract between a landlord and tenant that includes a clause allowing the tenant to purchase the property at some later date. To activate the purchase option, the tenant typically pays an option fee up front. This fee is non-refundable should the tenant change their mind about purchasing the property. The lease is then renewed for a specified period of time, during which the tenant may decide whether or not to exercise their purchase option. An option to purchase is a contract between the owner of a property and a potential buyer. This type of contract would transfer the right to purchase the property from the owner to the potential buyer. In exchange, the potential buyer pays the owner an option fee up front. The option fee is typically non-refundable and allows the buyer the exclusive right to purchase the property during the agreed-upon timeframe. Overall, the main difference between a lease with option to purchase and an option to purchase is that the former involves a landlord-tenant relationship, while the latter involves a transfer of rights between the property owner and buyer.

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What is the difference between a lease with option to purchase and an option to purchase?

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