Michigan homeownership structures
Lease Option vs. Land Contract in Michigan
Both can be described as alternative paths to ownership, but they are not the same arrangement.
The central difference
A lease option generally begins as a rental with a possible later purchase. A land contract is generally a purchase financed by the seller. The timing of ownership rights, payment structure, maintenance duties, default remedies, and closing expectations can differ significantly.
Questions to ask
Understand the price, payment, term, responsibilities, title status, taxes, insurance, repairs, default provisions, and what must happen before the buyer receives a deed. Michigan-specific legal and tax advice should come from qualified professionals.
The label alone does not tell you whether an agreement is fair or appropriate. Review the actual documents and the complete path to ownership.