A Lease-Purchase Contract, also known as a lease purchase agreement or rent-to-own agreement, allows consumers to obtain durable goods or rent-to-own real estate without entering into a standard credit contract. It is a shortened name for a lease with option to purchase contract. For real estate, a lease purchase contract combines elements of a traditional rental agreement with an exclusive right of first refusal option for later purchase of the home. Elements Elements of a lease purchase contract typically include: Property value - The agreed sale price of the property. Duration - The time frame of the agreement. Monthly payment - How much the lessor will be paying monthly. Rent credit - How much of the lessor's monthly payment will go to the eventual purchase price at the end of the lease. The contract will also generally include terms that relate to repairs and maintenance and, for real estate transactions, how such expenses such as property taxes and homeowner association fees will be paid. Transaction Structure In a standard Lease-Purchase Contract, the two parties agree to a lease period during which rent is paid, and the terms of the sale at the end of the lease period, including sale price. Often, the contract is structured in two parts, one representing the lease term and the other a contract of sale. As is usually stated in the lease purchase contract, the option fee and accrued rent credit are both non-refundable should the tenant/buyer decide to walk at the end of the lease. The tenant/buyer is released from responsibility for the sale, and the landlord/seller is responsible for finding new tenants. In simpler terms a LOA or LPA is to take over a property for little to no money down as an agreement to pay for a property later giving the incentive of Guaranteed monthly payments to the other party so you can take control of a property and generate monthly income from it with the (option not the obligation) to buy the property in an average of 5-8 years time from the agreed upon deal. A LOA or LPA is an exceptionally popular property investment as you can profit by monthly rents from tenants and purchase the property at an agreed amount and then you can sell with a possible high profit from capital appreciation, pulling out all your money out having a maximum profit and an infinite ROI. A LOA/LPA