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 Michigan Lease of Unfurnished House with Option to Purchase, also known as a Lease or Rent to Own agreement, is a legal contract that allows a tenant to lease a house with the potential to purchase it at a later date. This type of agreement is particularly beneficial for individuals who are unable to immediately qualify for a traditional mortgage but still desire to own a property. In a Michigan Lease of Unfurnished House with Option to Purchase agreement, the tenant has the opportunity to rent the house for a specified period, typically ranging from one to three years. During this time, the tenant has the option to purchase the house at an agreed-upon price. It provides the tenant with the chance to test the property and neighborhood before committing to a long-term purchase. There are several types of Michigan Lease of Unfurnished House with Option to Purchase agreements available, including: 1. Lease Option Agreement: This type of agreement allows the tenant to buy the house within a specified time frame, usually with a predetermined purchase price. The tenant pays an upfront option fee, which is typically non-refundable, giving them the exclusive right to purchase the property. 2. Lease Purchase Agreement: Similar to a lease option, this agreement requires the tenant to purchase the property at the end of the lease term. The major difference is that in a lease purchase, the tenant is legally obligated to buy the house, whereas in a lease option, they have the choice. 3. Contract for Deed: Also known as a land contract or installment contract, this agreement allows the tenant to make monthly payments directly to the landlord, acting as the seller. Ownership transfers to the tenant once the final payment is made. 4. Lease with Right of First Refusal: This type of agreement grants the tenant the first opportunity to purchase the property if the landlord decides to sell it during the lease term. The tenant has the right to match any other offers and proceed with the purchase. Michigan Lease of Unfurnished House with Option to Purchase agreements provide flexibility for both tenants and landlords. Tenants can lock in a future purchase price while renting, and landlords can secure a potential buyer for their property. However, it is crucial for all parties involved to carefully review and understand the terms and conditions of the agreement before signing, as it creates legal obligations and financial commitments.
