Which agreement automatically transfers ownership to the government after the lease term?

• A. Lease-to-Ownership
• B. Straight Lease
• C. Purchase Agreement
• D. Credit Lease

Answer: (A)

Lease-to-Ownership is designed so the asset becomes owned by the government after the lease term, typically automatically once the lease conditions are met. This arrangement intentionally combines use with eventual title transfer, removing the need for a separate purchase action at the end of the term.

A straight lease, by contrast, is just rental with no transfer of ownership. A purchase agreement involves buying the asset outright, which transfers ownership outside of a lease framework. A credit lease is a financing arrangement where ownership may transfer only if a purchase option is exercised or final payments are made, not automatically at the end of a standard lease term.