Michigan House Republicans
Rent-back agreement fix clears House
RELEASE|April 30, 2024
Contact: John Roth

Bipartisan package better defines rules for agreements allowing sellers to temporarily occupy homes after sale

State Rep. John Roth on Tuesday saw his bipartisan plan to amend Michigan’s housing rules pass the House with overwhelming support.

Rent-back agreements have become a common way for homes sales to be completed even if the seller cannot immediately hand over ownership of the property. For example, someone could sell their house two weeks before closing on their new home. In this case, a buyer could agree to a rent-back agreement where the seller stays in the property until they finalize the purchase of their new home. However, this has opened an opportunity for bad actors to sell their home and continue to squat on the property, which is now illegal under the plan.

“The need for additional clarity around rent-back agreements has become glaringly obvious as they’ve increased in frequency in recent years,” said Roth, R-Interlochen. “We hope no one would decide to squat in a house they just sold. But as it stands, there really aren’t purchaser protections should someone decide to pocket the cash and keep living in a home they no longer own. I’m glad to see my colleagues recognize the clear need here and join us in supporting this bipartisan initiative.”

Roth was joined by Rep. Kelly Breen, D-Novi, and Denise Mentzer, D-Mt. Clemens, in introducing the three-bill package. The plan now moves on to the Senate for further consideration.


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