A Michigan rent-to-own agreement establishes a real estate rental/purchase arrangement between a tenant and a landlord (also referred to as buyer and seller, respectively). The form provided on this page is a lease option contract, which is a type of rent-to-own agreement, and it differs from a lease purchase agreement in that the tenant is not legally obligated to buy the property at the end of the lease.
The length of the lease is determined before the contract is signed as well as the option term, which is the amount of time the tenant will have to choose whether or not to go through with the purchase. The option fee and monthly rent payments, including the percentage that will go towards the purchase price, will be negotiated by the parties and included in the document.
Lease Laws – Act 348 of 1972 (Landlord and Tenant Relationships)
Purchase Agreement Laws – Chapter 565 (Conveyances of Real Property)
Tenants must be notified that if they believe they are in danger due to domestic violence while renting property from a landlord, they may be released from their monthly rent obligations. This notice must be attached to the lease, posted on the premises, or delivered to tenants.
An inventory checklist should be presented to tenants so they can record the condition of the premises before moving into leased residential property.
To act in accordance with federal law, landlords renting out property built prior to 1978 must deliver this disclosure form to all prospective tenants.
A security deposit notice must be delivered to tenants if the landlord demanded a security deposit at the beginning of the tenancy. This notice includes information on the financial institution where the money was deposited, the surety company used if the money is moved, and the landlord’s mailing address.
The following statement, which is in compliance with the Truth in Renting Act, must be attached to all residential lease agreements:
NOTICE: Michigan law establishes rights and obligations for parties to rental agreements. This agreement is required to comply with the Truth in Renting Act. If you have a question about the interpretation or legality of a provision of this agreement, you may want to seek assistance from a lawyer or other qualified person.