I have purchased a used iPad. I would like to change iTunes account to my own?

I have purchased a used iPad. I would like to change iTunes account to my own - how do I do this and will I lose the apps that are already on there? Seems a shame - there is some nice stuff on it!

Restore the iPad with iTunes as a new iPad.
All apps, all paid and free apps include DRM protection which is tied to the iTunes account that was used to download the apps. In order to install an app update for an app that was downloaded with the previous owner's iTunes account, you need to know the password for the previous owner's iTunes account. This is to prevent stealing purchased apps. If any of the apps are free, you can download the apps with your iTunes account. For any paid apps, you need to purchase the apps with your iTunes account.

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