A lease purchase is a type of agreement where a person rents a property with the option to buy it later. Typically, a portion of the monthly rent goes toward the purchase price, allowing the tenant to build equity over time. This arrangement can be beneficial for those who may not have enough savings for a down payment immediately. In a lease purchase, the terms, including the purchase price and duration of the lease, are usually set at the beginning of the agreement. This provides clarity for both the tenant and the property owner, making it a structured way to transition from renting to owning a home.