Contracts
In Michigan, a lease option agreement gives the tenant:
AAn obligation to purchase the property at lease end
BThe right but not the obligation to purchase the property during or at the end of the lease term at a pre-agreed price✓ Correct
COnly the right to renew the lease
DThe right to sublease to any party
Explanation
A lease option gives the tenant/optionee the right—but not the obligation—to purchase the property at a specified price within a specified period. Unlike a lease purchase, it does not obligate the tenant to buy.
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