Michigan Laws
Requirement to Record: Recording an option to purchase is not legally required but only recorded options legally establish notice to third parties.[1]
Expiration: Constructive notice created by recording an option does not expire by statute.
Maximum Term: State law does not set a maximum term for a lease with an option to purchase.
No Duration: If the option includes no specific expiration date, it will expire at the end of the lease.
Signing Requirements: Must be in writing and signed by the seller.[2]
Required Disclosures (6)
1. Domestic Violence – Tenants must be made aware that they have the right to terminate a lease if they experience domestic violence, sexual assault, or stalking. A lease agreement or a posted sign must contain the following language:
“A tenant who has a reasonable apprehension of present danger to him or her or his or her child from domestic violence, sexual assault, or stalking may have special statutory rights to seek a release of rental obligation under MCL 554.601b.”
2. Inventory Checklist – A landlord must provide a tenant with an inventory checklist before move-in and upon move-out so the tenant can make note of damages or wear and tear. The tenant should also receive a copy of the checklist submitted by the prior tenant.[3]
3. Lead-Based Paint Disclosure & EPA Pamphlet – If a property was built before 1978, its landlord must disclose to the tenant that the walls and ceiling could contain lead-based paint.
4. Notices – A landlord must provide a tenant with an address to which legal notices can be sent.[4]
5. Security Deposit Receipt – A landlord must give a tenant a receipt for a security deposit containing the following language: “You must notify your landlord in writing within 4 days after you move of a forwarding address where you can be reached and where you will receive mail; otherwise your landlord shall be relieved of sending you an itemized list of damages and the penalties adherent to that failure.”[5]
6. Truth in Renting Act – The lease must contain the following language:
“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.”[6]
Seller’s Disclosures (1)
1. Seller’s Property Disclosure Statement (required)– The seller must provide the purchaser with a full accounting of the property’s current condition to the best of their knowledge. Furthermore, the purchaser should have the property professionally inspected.[7]
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