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
Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legally-binding agreement designed to provide tenants with the opportunity to potentially purchase the property they are currently leasing. This addendum serves as an additional clause attached to the primary lease agreement, outlining the terms and conditions related to the rent-to-own option. When it comes to Lansing, Michigan, there are a few different types of Option to Purchase Addendums that can be used in residential lease agreements: 1. Fixed Purchase Price Addendum: This type of addendum specifies a predetermined purchase price for the property, usually agreed upon at the beginning of the lease term. It outlines the exact amount that the tenant will be required to pay if they decide to exercise their option to purchase the property. 2. Graduated Purchase Price Addendum: In some cases, a rent-to-own arrangement may include a graduated purchase price. This means that the purchase price will increase gradually over a specific period of time, allowing tenants to accumulate equity while renting before finalizing the purchase. 3. Lease-Option Addendum: This addendum grants the tenant the option to purchase the property within a specified timeframe, usually ranging from one to three years. The tenant has the flexibility to choose whether they want to exercise the option or not, giving them time to evaluate the property and their financial situation. 4. Lease-Purchase Addendum: Unlike a lease-option addendum, a lease-purchase addendum requires the tenant to buy the property at the end of the lease term. This type of agreement is suitable for tenants who have already made the decision to purchase the property but need some time to secure financing or fulfill certain obligations. The Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own outlines various essential points, including: 1. Option Fee: This fee, usually non-refundable, is paid by the tenant to the landlord to secure the rent-to-own option. It gives the tenant the exclusive right to purchase the property within the agreed-upon timeframe. 2. Terms of the Option: This section details the duration of the option period, typically ranging from one to three years. It may also include any provisions for extending the option if both parties agree. 3. Purchase Price: The addendum should clearly state the purchase price or the methodology for determining it, such as the fixed price, gradual increase, or appraisal-based value. 4. Rent Credits: Depending on the agreement, a portion of the rent paid by the tenant might be credited towards the purchase price. The addendum should specify the amount or percentage of rent that will be credited. 5. Maintenance Responsibilities: It is vital to define who bears the responsibility for repairs and maintenance during the option period. This section clarifies whether the tenant or landlord will handle property upkeep and repairs. 6. Default and Remedies: This section outlines the consequences for both the tenant and landlord if either party fails to comply with the terms of the option addendum. It may include penalties, termination provisions, or any other remedies available under the law. Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers tenants a unique opportunity to transition from tenants to homeowners. It is crucial for both landlords and tenants to thoroughly understand the terms and conditions outlined in the addendum and seek legal advice if needed to ensure a smooth and fair rent-to-own arrangement.Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legally-binding agreement designed to provide tenants with the opportunity to potentially purchase the property they are currently leasing. This addendum serves as an additional clause attached to the primary lease agreement, outlining the terms and conditions related to the rent-to-own option. When it comes to Lansing, Michigan, there are a few different types of Option to Purchase Addendums that can be used in residential lease agreements: 1. Fixed Purchase Price Addendum: This type of addendum specifies a predetermined purchase price for the property, usually agreed upon at the beginning of the lease term. It outlines the exact amount that the tenant will be required to pay if they decide to exercise their option to purchase the property. 2. Graduated Purchase Price Addendum: In some cases, a rent-to-own arrangement may include a graduated purchase price. This means that the purchase price will increase gradually over a specific period of time, allowing tenants to accumulate equity while renting before finalizing the purchase. 3. Lease-Option Addendum: This addendum grants the tenant the option to purchase the property within a specified timeframe, usually ranging from one to three years. The tenant has the flexibility to choose whether they want to exercise the option or not, giving them time to evaluate the property and their financial situation. 4. Lease-Purchase Addendum: Unlike a lease-option addendum, a lease-purchase addendum requires the tenant to buy the property at the end of the lease term. This type of agreement is suitable for tenants who have already made the decision to purchase the property but need some time to secure financing or fulfill certain obligations. The Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own outlines various essential points, including: 1. Option Fee: This fee, usually non-refundable, is paid by the tenant to the landlord to secure the rent-to-own option. It gives the tenant the exclusive right to purchase the property within the agreed-upon timeframe. 2. Terms of the Option: This section details the duration of the option period, typically ranging from one to three years. It may also include any provisions for extending the option if both parties agree. 3. Purchase Price: The addendum should clearly state the purchase price or the methodology for determining it, such as the fixed price, gradual increase, or appraisal-based value. 4. Rent Credits: Depending on the agreement, a portion of the rent paid by the tenant might be credited towards the purchase price. The addendum should specify the amount or percentage of rent that will be credited. 5. Maintenance Responsibilities: It is vital to define who bears the responsibility for repairs and maintenance during the option period. This section clarifies whether the tenant or landlord will handle property upkeep and repairs. 6. Default and Remedies: This section outlines the consequences for both the tenant and landlord if either party fails to comply with the terms of the option addendum. It may include penalties, termination provisions, or any other remedies available under the law. Lansing, Michigan Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers tenants a unique opportunity to transition from tenants to homeowners. It is crucial for both landlords and tenants to thoroughly understand the terms and conditions outlined in the addendum and seek legal advice if needed to ensure a smooth and fair rent-to-own arrangement.
