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.
Minnesota Lease of Unfurnished House with Option to Purchase — Lease or Rent to Own is a legal agreement that offers tenants the opportunity to rent a house with the option to buy it at a later date. This type of lease agreement provides potential homeowners a chance to save money for a down payment or improve their credit score while living in the property they intend to purchase. In Minnesota, there are different variations of the Lease of Unfurnished House with Option to Purchase — Lease or Rent to Own, including: 1. Standard Lease Option Agreement: This agreement outlines the terms and conditions of the lease, including monthly rent, duration, and security deposit. It also includes a provision granting the tenant the right to purchase the property at an agreed-upon price within a specified time frame. 2. Lease Option Agreement with Rent Credit: In this version of the lease agreement, a portion of the monthly rent paid by the tenant is credited towards the eventual purchase price. This feature enables tenants to build equity in the property while renting. 3. Lease Agreement with Purchase Option: This type of agreement grants the tenant the exclusive option to purchase the property at a predetermined price within a specific period. It may include terms that allow the tenant to negotiate the purchase price or terms during the lease term. 4. Lease-Purchase Agreement: Similar to a lease option agreement, a lease-purchase agreement encompasses both a lease and a purchase contract. This agreement requires the tenant to purchase the property at the end of the lease term. 5. Owner Financing Lease Option Agreement: This arrangement involves the property owner financing the purchase directly with the tenant. It provides an opportunity for tenants who may have difficulty obtaining traditional bank financing to become homeowners. It is crucial to consult with a real estate attorney or experienced professional to ensure that all legal requirements and obligations associated with a Minnesota Lease of Unfurnished House with Option to Purchase — Lease or Rent to Own are met. Both landlords and tenants should thoroughly review the agreement, understand its terms, and clarify any concerns before entering into this type of arrangement.
