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 Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legally binding document that outlines the terms and conditions for a renter to have the option to purchase the leased property in the future. This addendum provides an opportunity for tenants to become homeowners and build equity while renting. The key features of the Wayne Michigan Option to Purchase Addendum include: 1. Lease Option Terms: This section provides details about the specific terms of the lease option agreement, including the amount of time the tenant has to exercise the option, typically ranging from 1 to 3 years. 2. Purchase Price: The addendum specifies the agreed-upon purchase price of the property at the end of the lease term. This price is usually determined at the signing of the lease agreement and remains fixed throughout the lease option period. 3. Option Fee: An option fee may be required by the landlord and is typically non-refundable. It grants the tenant the exclusive right to purchase the property and is often credited towards the purchase price if the option is exercised. 4. Rent Credit: This section outlines whether a portion of the monthly rent payments will be credited towards the down payment or purchase price when the tenant exercises the option. It is important to note if and how much of the rent will be applied as a credit. 5. Property Maintenance: The addendum will outline the responsibilities of both the tenant and landlord regarding property maintenance and repairs during the lease term. It clarifies who is responsible for repairs and upkeep, ensuring that the property remains in good condition. 6. Financing Contingencies: This section specifies if the tenant is required to obtain financing to exercise the purchase option. It may state that the option is contingent upon the tenant securing a mortgage or financing within a specified timeframe. Other variations or types of Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own might include specific provisions tailored to the needs of both parties involved. These additional options could include: 1. Rent Escalation Clause: This provision outlines how much the monthly rent will increase over the lease term if the tenant decides to exercise the purchase option. It safeguards the landlord against potential financial losses due to inflation or changes in the market value of the property. 2. Inspection Contingency: This clause allows the tenant the right to inspect the property before exercising the option to purchase. If significant issues are discovered during the inspection, the tenant may have the choice to terminate the lease option agreement. 3. Default and Termination: This section defines the consequences if either party fails to comply with the terms of the lease option. It clarifies the conditions under which the lease option may be terminated and what penalties or remedies may apply. In summary, the Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides a structured framework for tenants to potentially transition into homeownership. It offers the opportunity to rent a property while setting plans in motion to buy it in the future.The Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legally binding document that outlines the terms and conditions for a renter to have the option to purchase the leased property in the future. This addendum provides an opportunity for tenants to become homeowners and build equity while renting. The key features of the Wayne Michigan Option to Purchase Addendum include: 1. Lease Option Terms: This section provides details about the specific terms of the lease option agreement, including the amount of time the tenant has to exercise the option, typically ranging from 1 to 3 years. 2. Purchase Price: The addendum specifies the agreed-upon purchase price of the property at the end of the lease term. This price is usually determined at the signing of the lease agreement and remains fixed throughout the lease option period. 3. Option Fee: An option fee may be required by the landlord and is typically non-refundable. It grants the tenant the exclusive right to purchase the property and is often credited towards the purchase price if the option is exercised. 4. Rent Credit: This section outlines whether a portion of the monthly rent payments will be credited towards the down payment or purchase price when the tenant exercises the option. It is important to note if and how much of the rent will be applied as a credit. 5. Property Maintenance: The addendum will outline the responsibilities of both the tenant and landlord regarding property maintenance and repairs during the lease term. It clarifies who is responsible for repairs and upkeep, ensuring that the property remains in good condition. 6. Financing Contingencies: This section specifies if the tenant is required to obtain financing to exercise the purchase option. It may state that the option is contingent upon the tenant securing a mortgage or financing within a specified timeframe. Other variations or types of Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own might include specific provisions tailored to the needs of both parties involved. These additional options could include: 1. Rent Escalation Clause: This provision outlines how much the monthly rent will increase over the lease term if the tenant decides to exercise the purchase option. It safeguards the landlord against potential financial losses due to inflation or changes in the market value of the property. 2. Inspection Contingency: This clause allows the tenant the right to inspect the property before exercising the option to purchase. If significant issues are discovered during the inspection, the tenant may have the choice to terminate the lease option agreement. 3. Default and Termination: This section defines the consequences if either party fails to comply with the terms of the lease option. It clarifies the conditions under which the lease option may be terminated and what penalties or remedies may apply. In summary, the Wayne Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides a structured framework for tenants to potentially transition into homeownership. It offers the opportunity to rent a property while setting plans in motion to buy it in the future.
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.
