Michigan Rent-to-Own Lease Agreement
A Michigan rent-to-own agreement is a legal document that allows a tenant to occupy a residential property for a specified term while also granting them the option to purchase the property at the end of the lease period.
Michigan Rent-to-Own Lease Agreement
Key Components of the Agreement
-
Lease Terms: The agreement outlines the terms of the lease, including utility responsibilities and monthly payment obligations.
-
Purchase Option: The agreement specifies the tenant’s right to purchase the property once the lease ends.
-
Screening Process: It is advisable to accompany the rent-to-own agreement with a rental application to screen potential tenants and a real estate purchase agreement to clearly define the terms of the property’s sale.
-
Purchase Price and Fees: The document includes the established purchase price, any associated fees, and the expiration date of the offer.
Tenant’s Rights
While the tenant is not obligated to proceed with the purchase, they have the option to either accept or decline the purchase opportunity, providing them with a unique pathway to homeownership.
Legal Citations
- Landlord-Tenant Laws: Act 348 of 1972 (Landlord and Tenant Relationships)
- Purchase Agreement Laws: Chapter 565 (Conveyances of Real Property)
Statutes
- Mich. Comp. Laws § 125.530 – Certificate withheld; premises not to be occupied; conditions of issuance; suspension of rent payments, escrow; account for rent and possession
- Mich. Comp. Laws § 554.633 – Rental agreement; prohibited provisions or clauses; violation
- Mich. Comp. Laws § 554.201 – Untenantable building; surrender, liability of lessee for rent
- Mich. Comp. Laws § 554.134(1) – Termination of estate at will or by sufferance or tenancy from year to year
- Mich. Comp. Laws § 554.134(2) – Termination of estate at will or by sufferance or tenancy from year to year
- Mich. Comp. Laws § 554.134(3) – Termination of estate at will or by sufferance or tenancy from year to year
- Mich. Comp. Laws § 554.134(4) – Termination of estate at will or by sufferance or tenancy from year to year
- Mich. Comp. Laws § 554.139 – Lease or license of residential premises; covenants; modifications; liberal construction, inspection
- Mich. Comp. Laws § 554.601b – Tenant under apprehension of danger from domestic violence, sexual assault, or stalking; release from rental payment obligation; written notice; content; documentation; forwarding information; liability of multiple tenants; applicability; remedies against other parties; definitions
- Mich. Comp. Laws § 554.602 – Security deposit; amount
- Mich. Comp. Laws § 554.603 – Security deposit; notice
- Mich. Comp. Laws § 554.604 – Security deposit, disposition; bond
- Mich. Comp. Laws § 554.607 – Security deposit; permissible uses
- Mich. Comp. Laws § 554.608 – Inventory checklists
- Mich. Comp. Laws § 554.608(4) – Inventory checklists
- Mich. Comp. Laws § 554.609 – Itemized list of damages; check or money order; contents of notice of damages
- Mich. Comp. Laws § 554.610 – Effect of noncompliance with notice of damages requirement
- Mich. Comp. Laws § 554.611 – Notice of forwarding address; effect of noncompliance
- Mich. Comp. Laws § 554.612 – Response to notice of damages
- Mich. Comp. Laws § 554.613 – Action for damages; retention of security deposit; waiver
- Mich. Comp. Laws § 554.634(1) – Rental agreement; mandatory statements
- Mich. Comp. Laws § 600.2918(2)(c & d) – Damages for forcible entry and detainer; damages for unlawful interference with possessory interest; exceptions; opening of probate estate; forcible entry or possession by occupant; action for possession; claim for injunctive relief; joinder; waiver; commencement of action; limitations; “owner” defined
- Mich. Comp. Laws § 600.2918(2)(f) – Damages for forcible entry and detainer; damages for unlawful interference with possessory interest; exceptions; opening of probate estate; forcible entry or possession by occupant; action for possession; claim for injunctive relief; joinder; waiver; commencement of action; limitations; “owner” defined
- Mich. Comp. Laws § 600.2918(3)(b) – Damages for forcible entry and detainer; damages for unlawful interference with possessory interest; exceptions; opening of probate estate; forcible entry or possession by occupant; action for possession; claim for injunctive relief; joinder; waiver; commencement of action; limitations; “owner” defined
- Mich. Comp. Laws § 600.2918(3)(c) – Damages for forcible entry and detainer; damages for unlawful interference with possessory interest; exceptions; opening of probate estate; forcible entry or possession by occupant; action for possession; claim for injunctive relief; joinder; waiver; commencement of action; limitations; “owner” defined
- Mich. Comp. Laws § 600.2952 – Failure of maker to pay amount of dishonored check, draft, or order; liability; written demand for payment; delivery and text; effect of payment before trial; jurisdiction of action
- Mich. Comp. Laws § 600.5714 – Summary proceedings to recover possession of premises; holding over by tenant or occupant of public housing or by tenant of mobile home park
- Mich. Comp. Laws § 600.5720 – Judgment for possession of premises for alleged termination of tenancy; grounds for not entering; retaliatory termination of tenancy; presumptions; burden
- Mich. Comp. Laws § 600.5759 – Costs
- Mich. Comp. Laws § 600.8401 – Small claims division; creation; judge; jurisdiction
- Mich. Comp. Laws § 600.5807(8) – Damages for breach of contract; specific performance; period of limitations; bond; deed; mortgage; surety bond; appeal bond; public obligations; other actions
FAQs
A Michigan rent-to-own agreement is a legal document that allows a tenant to live in a residential property for a specified term while having the option to purchase the property at the end of the lease. This agreement outlines the lease terms, including monthly payments and utility responsibilities, and specifies the tenant’s right to buy the property.
Key components of a Michigan rent-to-own agreement include the lease terms, the purchase price of the property, any associated fees, and the expiration date of the offer. It also details the tenant’s responsibilities during the rental period and their option to purchase the property once the lease concludes.
A rent-to-own agreement benefits tenants by providing them with a unique path to homeownership. They can live in the property while having the option to buy it later, allowing them time to improve their financial situation or save for a down payment without the immediate pressure of purchasing.
Landlord-tenant relationships in Michigan are governed by Act 348 of 1972. This law outlines the rights and responsibilities of both landlords and tenants, ensuring fair treatment and legal recourse in case of disputes.
Landlords should include the lease terms, purchase price, associated fees, and expiration date in a rent-to-own agreement. It is also advisable to accompany this agreement with a rental application for tenant screening and a real estate purchase agreement to clearly define the sale terms.
Yes, tenants in Michigan can choose not to follow through with the purchase in a rent-to-own agreement. The agreement provides them the option to buy the property, but they are not obligated to do so, allowing for flexibility in their decision.
The purpose of a rental application in the rent-to-own process is to screen potential tenants. It helps landlords assess the suitability of applicants based on their financial history and rental background before entering into a lease agreement.