What is a lease purchase agreement?

A lease purchase agreement (or lease-option agreement) is a legally binding contract between a tenant and a landlord in New York State that allows the tenant to rent a property for an agreed-upon amount of time with the option to purchase it at the end of the lease. In a lease purchase agreement, the tenant agrees to rent the property for an extended period of time—typically a number of years—at a predetermined monthly rate. The tenant also agrees to a predetermined sale price for the property and agrees to transfer this sale price to the landlord at the end of the lease period. One of the main benefits for the tenant is that the tenant is able to secure a home before the end of the lease period. This allows the tenant to move into the home and begin making improvements and other modifications as they wish. The main benefit for the landlord is that it provides them with an opportunity to receive a lump sum payment for the property rather than receive periodic payments throughout the lease agreement. This model is especially beneficial for landlords who are in need of a quick sale due to financial difficulty. Overall, a lease purchase agreement is a great way for both the tenant and landlord to achieve their respective goals. By entering into such an agreement, the tenant can become a homeowner earlier than they may have expected, whereas the landlord can receive a lump sum payment for the property without engaging in a long drawn-out sales process.

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What is a lease purchase agreement?

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