Contracts
In Michigan, a 'lease with option to purchase' typically requires the tenant to:
APurchase the property at the end of the lease automatically
BPay option consideration (usually a non-refundable fee) to hold the right to purchase at a set price during or at the end of the lease✓ Correct
CObtain financing before signing the lease
DObtain the landlord's permission each time they wish to make a purchase offer
Explanation
A lease with option to purchase requires the tenant to pay option consideration (a fee, often credited toward the purchase price) to hold the option. If the tenant exercises the option, they purchase at the pre-agreed price. If not, they lose the option fee.
Related Michigan Contracts Questions
- In Michigan, a contract for the sale of real estate is said to be 'executed' when:
- A Michigan real estate purchase agreement is considered 'executed' when:
- A Michigan buyer discovers after closing that the seller did not disclose a material defect. The buyer's potential legal remedy is:
- In Michigan, 'zoning contingency' in a commercial purchase agreement allows the buyer to:
- A Michigan buyer's inspection contingency allows the buyer to:
- In Michigan, a purchase agreement 'rider' is:
- If a buyer defaults on a Michigan purchase agreement and the contract contains a liquidated damages clause, the seller:
- In Michigan, a 'leaseback' arrangement (sale-leaseback) involves:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →