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

A lease with option to purchase and an option to purchase are two different types of agreements in residential real estate law in New Hampshire. A lease with option to purchase is an agreement between the tenant (lessee) and the landlord (lessor). This type of agreement allows the tenant to rent the property for a set period of time, usually around one year, and gives them the option to purchase the property during or after the lease period. In this agreement, the tenant pays a set rental price as well as an option fee, which is often credited toward the purchase price if they decide to buy. An option to purchase is an agreement between the tenant (optionee) and the owner (optionor) of a property. This type of agreement gives the tenant the right to purchase the property at an agreed-upon price, within an agreed-upon time frame. The tenant pays a set option fee in exchange for this right. If the tenant chooses to exercise their option to purchase, the optionee pays the optionor the agreed-upon price, but if they decide not to purchase, the option fee is not refundable. The differences between the two agreements are that a lease with option to purchase includes a rental agreement and an option fee, while an option to purchase does not include a rental agreement and the tenant only pays an option fee. Additionally, if the tenant exercises their option to purchase in a lease with option to purchase, the option fee is often credited toward the purchase price, while the option fee is not refundable in an option to purchase.

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

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