The relationship of landlord/tenant or lessor/lessee is created by contract. The person who owns the real property is known as the lessor or landlord. The lessee, or tenant, is the one who occupies the property.
Tenancies are classified by duration as tenancies for years, from year to year, month to month, and at will. A tenancy for years is one under which the tenant has an estate of definite duration. The term "for years" is used to describe such a tenancy even though the duration of the tenancy is for only one year or for less than a year. A tenancy from year to year or month to month is one under which a tenant, holding an estate in land for an indefinite duration, pays an annual, monthly, or weekly rent.
A Maryland Lease of Unfurnished House with Option to Purchase, also known as a Rent-to-Own agreement, is a legal contract that offers tenants the opportunity to lease a house with the option to purchase it at a later date. This arrangement combines elements of a traditional lease agreement with a future home purchase agreement. The Maryland Lease of Unfurnished House with Option to Purchase provides tenants with the flexibility to live in the house they desire while having the possibility of becoming homeowners. It is particularly attractive for individuals or families who may not have enough funds for a down payment or qualify for a mortgage loan at the current time but have the intention of buying the property in the future. There are a few different types of Maryland Lease of Unfurnished House with Option to Purchase agreements available, depending on the specific terms negotiated between the landlord and the tenant: 1. Option Fee: In this type of agreement, the tenant pays a non-refundable fee to the landlord for the option to purchase the house within a specified time frame, usually 1-3 years. This fee is typically credited towards the down payment or purchase price if the tenant chooses to exercise the option to buy. 2. Rent Credits: Some agreements may include rent credits, where a portion of the monthly rent paid by the tenant is applied towards the eventual purchase of the property. This can help tenants save money for the down payment while also building equity in the home over time. 3. Purchase Price: The lease agreement should clearly outline the purchase price of the house, which is typically determined at the beginning of the lease term or based on market value at the time of purchase. It's important to have a fair and reasonable purchase price agreed upon to avoid conflicts in the future. 4. Maintenance and Repairs: The lease agreement should clearly state the responsibility of maintenance and repairs during the lease term. In some cases, the landlord may be responsible for major repairs, while the tenant is responsible for general maintenance and minor repairs. 5. Termination: The agreement should also include provisions for termination, both by the tenant and the landlord. This may include circumstances under which the option to purchase is no longer valid or if the tenant fails to fulfill their obligations under the lease agreement. Overall, a Maryland Lease of Unfurnished House with Option to Purchase provides an opportunity for renters to become homeowners in the future while enjoying the benefits of living in the property they desire. It is essential for both parties to carefully review and understand all terms and conditions before entering into this type of agreement. Consulting with a real estate attorney or professional is highly recommended ensuring a smooth and legally binding transaction.
