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 real estate transactions that occur in New York. A lease with option to purchase is a lease agreement that gives the tenant the right to buy the property at a predetermined price and within a certain amount of time. This option is often used when a tenant wants to eventually purchase the property but needs some time and money to do so. An option to purchase, on the other hand, is an agreement between the seller and the buyer to purchase the property at an agreed-upon price. This agreement is binding, meaning that the buyer is obligated to purchase the property unless the seller agrees otherwise. Unlike a lease with option to purchase, this agreement does not give the buyer time to acquire the funds for the purchase. The main difference between these two types of transactions is that a lease with option to purchase is not binding and gives the tenant time to save money and purchase the property at a later date; while an option to purchase is a legally binding agreement and the buyer must purchase the property within an agreed-upon time frame.

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

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