This Option to Purchase Addendum to Residential and Lease Agreement is entered into by and between the lessor and the lessee. The lessor agrees not to offer the residence for sale to anyone during the term of the lease, and to give the lessee (tenant) the option to purchase the residence at any time prior to the expiration of the lease, provided the lessee gives notice of intent to purchase in accordance with the provisions of the Addendum. At that point, a separate contract of sale will be executed and the sale will proceed as any sale would.
Please note: This Addendum form is NOT a lease agreement. You will need a separate Residential Lease Agreement. The Addendum would be attached to that Agreement
The Ann Arbor Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal document that outlines the terms and conditions of a lease agreement with an option for the tenant to purchase the property in the future. This addendum provides both the landlord and tenant with a clear understanding of their rights and responsibilities throughout the lease term and the option period. The purpose of the Ann Arbor Michigan Option to Purchase Addendum is to allow tenants the opportunity to rent a property with the potential to become homeowners at a later date. This agreement provides a flexible solution for individuals who may not be ready or able to purchase a home outright but still want to invest in their future. By entering into this agreement, tenants can secure a place to live while working towards homeownership. There are various types of Ann Arbor Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own, depending on the specific terms and conditions agreed upon by the landlord and tenant. These may include: 1. Option Fee: This type of addendum requires the tenant to pay a non-refundable fee upfront to secure the option to purchase the property within a specified timeframe. This fee is typically applied towards the purchase price if the tenant decides to exercise their option. 2. Purchase Price: The addendum should clearly state the agreed-upon purchase price for the property. This price can be fixed or based on an appraisal at the time of purchase. 3. Option Period: The addendum should specify the duration of the option period, during which the tenant has the right to purchase the property. Typically, this period ranges from one to three years, but it can be negotiated between the parties involved. 4. Rent Credits: In some cases, a portion of the monthly rent paid by the tenant can be credited towards the purchase price if the option is exercised. The addendum should clearly outline the amount or percentage of rent that will be credited towards the purchase. 5. Maintenance and Repairs: The addendum should specify the responsibility of maintenance and repairs during the lease term. It should also clarify any modifications or improvements made by the tenant and whether they can be credited towards the purchase price. 6. Financing Contingency: If the tenant intends to obtain financing to purchase the property, the addendum may include a financing contingency clause. This clause provides the tenant with a way to back out of the purchase if financing cannot be obtained. In conclusion, the Ann Arbor Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides a valuable opportunity for tenants to explore homeownership while leasing a property. It offers flexibility and allows tenants to test the waters of ownership before committing to a full purchase. It is essential for both parties to carefully review and understand the terms of the addendum to ensure a smooth and transparent transition from tenant to homeowner.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
