At the end of the contract, the property is returned to the lessor in a condition and at a place as agreed to by the parties. Title remains with the lessor. All or a portion of the lease payments may apply toward the purchase of the property as stated in the contract.
Title remains with the lessor until the purchase option is exercised.
Lessee normally has the right, but not the obligation, to pay the guaranteed amount and take title to the item. Title remains with the seller until the total contract amount has been paid, but the University has use and possession of the property during the life of the contract. Third party leases are available through banks and commercial leasing companies. Most third party lessors have no real interest in the equipment, do not include maintenance in the lease, and are not expert in the operation of equipment. The lease is written with the expectation of the lessee owning the equipment at the end of the lease period.