A Michigan rent-to-own agreement is a legal document that lets a tenant reside on a residential property for a designated term while also giving them the option to buy the property when the lease ends. This contract contains the lease’s terms, like utility responsibilities and monthly payments, so the tenant understands their obligations during the rental period. It also lists the tenant’s right to purchase the property once the lease ends.
For an effective process, it is recommended to accompany this agreement with a rental application to screen potential tenants and a real estate purchase agreement to firmly establish the terms of the property’s sale. In addition to the established purchase price, the document contains the offer’s associated fee and expiration date.
Even though the tenant doesn’t have to follow through with the purchase, it’s available to them to decline or accept, allowing them a unique path to homeownership.
Landlord-Tenant Laws: Act 348 of 1972 (Landlord and Tenant Relationships)
Purchase Agreement Laws: Chapter 565 (Conveyances of Real Property)
