Am I required to accept a lease buyout offer from my landlord?

No, Michigan law does not require you to accept a buyout offer. Your decision is voluntary.

Do I have to use an official state form for a lease buyout?

There is no official state form, but all agreements should be in writing and signed by both parties.

What happens to my security deposit if I accept a buyout?

You are still entitled to your security deposit, less any legal deductions, under Michigan law.

Can my landlord threaten eviction if I don’t take the buyout?

No. Landlords cannot retaliate or threaten eviction unless valid legal grounds exist.

Where do I go if I have a dispute about my lease buyout in Michigan?

Lease disputes are handled by the Michigan District Court and you can access self-help resources online.

Lease Buyout Offers for Michigan Renters: What to Know

Moving Out & Ending a Lease Michigan published: June 21, 2025

If you rent in Michigan and your landlord wants you to leave before your lease ends, you might get what is called a lease buyout offer. This is when your landlord offers money, or another incentive, for you to move out early and end your lease agreement. Handling a lease buyout can have both benefits and risks. Understanding your rights, the official process, and government resources can help you make the best decision for your situation.

What Is a Lease Buyout in Michigan?

A lease buyout is when a landlord and tenant agree in writing to end a rental lease early, often in exchange for compensation. In Michigan, lease terms are governed by the Truth in Renting Act and Landlord and Tenant Relationships Act.^[1] Neither law requires a landlord to offer a buyout, nor requires you to accept. If you choose to negotiate or accept, make sure that your decision and all terms are in writing.

Common Reasons Landlords Make Buyout Offers

Planning major repairs, renovations, or demolition
Wanting to sell the building vacant
Wishing to end problematic tenancies without formal eviction
Changing property use or ownership

Always confirm the reason for the buyout and consider what works best for you and your household.

Your Rights Under Michigan Law

As a tenant in Michigan, you have the right to:

Remain in your home until the lease ends—unless both parties agree otherwise
Review and negotiate any lease buyout offer (you are not required to accept)
Have any buyout offer or agreement clearly outlined in writing

You cannot be forced or pressured to accept a buyout. This protection is supported by the Michigan Attorney General's Renter Rights Guidance.

How to Review and Respond to a Lease Buyout Offer

If you receive a written or verbal buyout offer, it’s important to think carefully before responding. Consider your housing plans, your moving costs, and your rights.

Get the offer in writing: Never agree to a buyout verbally. Ask your landlord for all terms, payments, and expectations to be documented and signed.
Check your lease: Review your lease agreement for any early-termination clauses or penalties.
Negotiate if needed: You can make a counter-offer for more compensation or additional time to move out.
Understand the impact: Accepting a buyout ends your right to stay and may affect your next rental application. Ask for references or assistance finding new housing if needed.

If you’re unsure or feel pressured, consider seeking free legal advice (see Resources section).

Required Forms and Documentation

Written Lease Termination Agreement
Official Form Name: Lease Termination Agreement (no standard state form; use a written agreement signed by both parties)
When and How It’s Used: After agreeing to the buyout amount and terms, both you and your landlord should sign a Lease Termination Agreement. For example, if you agree to accept $1,500 to move out by a specific date, your agreement should clearly state the amount, move-out date, and that neither party owes future rent or penalties. There is no required Michigan state form, but you can find a sample template through the Michigan Legal Help website.

Make sure you get a copy of the signed agreement for your records.

What If You Feel Pressured or Disagree?

If you feel the offer is unfair, too low, or you are being pressured, you do not have to accept. No one can legally force you to move out or withhold basic services to pressure you to agree. You may also complain to the Michigan Attorney General’s Consumer Protection Division or seek help from your local housing authority.

If a landlord threatens, harasses, or makes your apartment unlivable to force a buyout, this may be considered illegal “constructive eviction.” Contact the state or your local legal aid office for help.

If You Decide to Accept

Get the buyout and move-out terms in writing and keep a signed copy
Remember to document the condition of your apartment with photos or a checklist when you move
Return your keys and request your security deposit back according to Michigan law (Security Deposit Act)^[2]

If you move out or accept a buyout without a written agreement, you risk losing any promised compensation or having disputes over your deposit.

What Tribunal Handles Tenant-Landlord Disputes?

Residential tenancy disputes, including lease terminations and security deposit issues, are usually handled by the Michigan District Court. Tenants can file complaints or respond to disputes there. Learn more about court processes and forms at the official Michigan Courts: Landlord-Tenant Self-Help center.^[3]

Frequently Asked Questions About Michigan Lease Buyouts

Am I required to accept a lease buyout offer from my landlord?
No, you can refuse any lease buyout offer. Michigan law does not require tenants to accept buyouts; you have the right to stay until your lease expires or both parties agree to new terms.
Do I have to use an official state form for a lease buyout?
No official state of Michigan form is required. However, all lease termination agreements should be in writing and signed by both tenant and landlord. Templates are available from legal aid organizations.
What happens to my security deposit if I accept a buyout?
You are still entitled to your security deposit, minus any deductions for damages, as outlined in the Security Deposit Act. Be sure to document your apartment’s condition and provide a forwarding address.
Can my landlord increase rent or threaten eviction if I don’t accept a buyout?
Landlords must follow Michigan’s legal rules for rent increases or evictions. They cannot threaten or retaliate against you for refusing a buyout. Contact the Michigan Attorney General if you experience this.
Where do I go if I have a dispute about my lease buyout in Michigan?
Lease disputes are handled by the Michigan District Court. You can seek guidance from free legal services or the court’s landlord-tenant self-help webpages.

Key Takeaways for Michigan Tenants

Always get lease buyout agreements or early termination offers in writing
Review your rights under Michigan law and do not feel pressured to accept
You retain your right to your security deposit, even if you agree to move

Carefully consider your options, and seek official advice if you’re unsure.

Need Help? Resources for Renters

Michigan Attorney General - Renter Rights (information and complaint forms)
Michigan Courts: Landlord-Tenant Self-Help Center (court process, forms, and dispute information)
Michigan Legal Help - Ending Your Lease (step-by-step guides and free legal help)
Local Detroit area tenants can also contact the City of Detroit Tenant Resources