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
Oakland Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal document that enables tenants to have the option to purchase the property they are currently leasing. This addendum serves as an agreement between the landlord and tenant, outlining the terms and conditions of the lease-to-own arrangement. There are different types of Oakland Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own, such as: 1. Fixed Purchase Price: This type specifies a predetermined purchase price for the property, which remains fixed throughout the lease term. This allows tenants to know exactly how much they would need to pay if they exercise their option to purchase. 2. Appraised Purchase Price: With this type, the purchase price is determined based on the appraised value of the property at the time of purchase. This offers flexibility as the tenant will pay the market value rather than a predetermined amount. 3. Credit for Rent: In some cases, a portion of the monthly rent paid by the tenant is credited towards the eventual down payment or purchase price. This type of arrangement allows tenants to build equity in the property while leasing it. 4. Lease-Option Agreement: This is a subtype of the lease-to-own agreement. It outlines the terms and conditions of the lease and gives the tenant the option to purchase the property at the end of the lease term. However, the tenant is not legally obligated to buy the property. The Oakland Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own typically includes important information, such as the duration of the lease term, the purchase price or valuation method, the amount of rent credited towards the purchase, and the option exercise deadline. It may also cover topics like repairs and maintenance responsibilities, potential penalties for non-payment, and any additional provisions that both parties agree upon. Before signing such an addendum, it is crucial to seek legal advice to ensure a thorough understanding of the terms and obligations. It is recommended that both landlords and tenants carefully review the agreement, negotiate terms if needed, and have a clear understanding of their rights and responsibilities before entering into such an arrangement.
