Flexible Path to Home Ownership
Land Contract
Land Contract
A land contract is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, until the purchase price is paid in full. This is called “seller financing” and when it comes to one of the most important assets in one’s life, there is no such thing as a simple land contract.
In Michigan real estate law, signed land contracts are legally binding and can contain many different forms of agreements. When all payments have been made the buyer will be deeded the property.
Common problems with Michigan Land Contracts are:
The deed remains in the seller’s name until all payments of the agreement are made, between time of initial contract and payoff, which can take years.
The price is set and the payment schedule may not be amortized evenly, with a balloon or large payment at the end.
Several years may pass where the parties may forget the original intent of the terms.
How Are You Affected?
Some people consider a land contract as a “lease with an option to buy.” Certain states have slightly different legal rights for buyers and sellers. As a result, the land contract can be difficult to understand.
A land contract buyer and seller must be very careful to ensure that the terms of the contract are legally binding to prevent future disputes from occurring. A seller’s remedy to unresolved disputes is to collect on land contract by forfeiture. If provisions in a land contract allow, then a land contract can be foreclosed upon. A buyer’s remedy is to sue for breach of contract or a judge may award the time to redeem property.
How Can We Help
Land contracts are legally binding agreements. Whether you are buying or selling a home on land contract, the performance of which requires substantial length of time. It is in the best interest of both the seller or buyer to involve a real estate attorney like David Soble to help you navigate through the federal and state laws governing land contracts, the process and the common terms of the contract. This can help prevent later disputes that may occur and give both parties peace of mind. Remember, the expense to clean up a mess is far greater than the expense of having it done right in the first place.
Do You Have a Land Contract Concern?
Call Us For Your CONSULTATION
At 888.419.7013 or
Complete This Form.
We respond within 24 business hours.
Do You Have a Land Contract Issue?
Call Us For Your CONSULTATION At 888.789.1715 or Complete This Form.
Land Contract
The American Bar Association lists over 81 legal specialties. Real estate and finance law are their own legal specialties. So how do you determine which attorney you should work with? When making a decision ask, which attorney has the most experience? Do they seem professional and dedicated? Do I see myself working with this real estate attorney on future real estate deals?
Finally, you should research the prospective real estate attorney. Check their articles, testimonials, white papers, and peer designations. Review what other people have to say about working with the attorney. Check online reviews and directories: it will shed light on who they are and their legal and business style.
Throughout Michigan and Ohio, clients entrust David Soble and his “Proven Resource” legal team with their biggest investments – our focus in every transaction is too reduce legal risks and financial exposure.
Listed below are the matters that we handle in real estate law:
- drafting conveyance documents
- residential purchases and refinances
- land contracts
- commercial purchases and refinances
- landlord-tenant
- quiet title actions
- partition actions
- deed disputes
- title disputes
- all types of real estate litigation
- property tax issues
- foreclosure
- lien law
What’s Keeping You Up At Night?
An Attorney’s Practical Approach to Resolving Real Estate Nightmares
Claim Your Free Copy Today
Claim Your Free Book Now!
YOUR eBOOK FROM ATTORNEY DAVID SOBLE AWAITS
What’s Keeping You Up At Night?
An Attorney’s Practical Approach to Resolving Real Estate Nightmares
Claim Your Free Copy Today
Videos
A Word About Land Contracts
Our latest Podcasts
Aliquid ut sequi libero ea nemo. Consequatur veniam vero ea et. In vero explicabo qui tempore corrupti. Itaque molestiae quasi
Est distinctio tenetur ex et ut sint enim. Hic et molestiae voluptates quia id et nihil. Consequatur omnis quia deserunt
Ut aliquam autem rerum et architecto asperiores. Veniam et est tenetur. Et et quisquam quas tempore quam atque sed sit.
Et accusamus numquam non. Itaque esse vitae sit. Ipsam veritatis modi repellendus. Aliquid ut vel ex. Hic sit vel culpa.
Ut natus consequuntur cumque at. Ea repellendus laudantium accusantium autem est enim optio. Eum aliquid ipsam nam ea ut. Cupiditate
Labore doloribus fugiat tenetur voluptas. Autem aut laudantium eum ullam est dolorem aut sed. Voluptate quia dolore natus non ipsa.
FAQs
Frequently Asked Questions
What is a Memorandum of Land Contract?
A memorandum of land contract is an instrument executed for the purpose of reflecting the existence of a land contract and the seller’s and purchaser’s interests in the real property subject to the underlying land contract. It contains only the names of the parties to the contract, the date of the execution, and the description of the real property involved. It does not disclose the consideration, the terms of payment, the time of performance, or the covenants or terms.
Can a purchaser legally sell or rent a house on land contract if there is a mortgage?
Once a purchaser comes into legal title to a property, they can sell a property on land contract. They will need to have a real estate attorney review the underlying mortgage to see if the “due on sale” provision of the mortgage will pose a problem or not.
Is there a penalty under law for failure to tender the deed on a land contract purchase (contract fulfilled by buyer in full)?
The closest thing to a statute dealing with failure to provide a deed upon a land contract payoff is a Michigan statute as it relates to providing discharges after 60 days. However, the land contract provisions control. So if the deed is not provided and the buyer performed as required, then the buyer can maintain an action for breach of contract claim.
My father bought a home through Land Contract, now he wants to deed the Property to me so I can pay it off. Can we do this and, if so, what kind of deed should we use?
First, your father should give you an assignment of the land contract provided that the land contract terms allow for an assignment. Second, a deed is worthless as your father does not have title in his name. It is still with the seller. A deed (quitclaim preferably) would do very little at this time. Finally, a lender will most likely require that you should be on title for at least 12 months before you could finance the property in your name. You would want to get the seller to approve the assignment of the land contract in your name as buyer, and make verifiable payments under the land contract for 12 months. After this, you can get a valid deed upon the payoff of the land contract.
I am being evicted from my Home that I had purchased on land contract. Can I remove the improvements that I made, such as installing new cabinets and a new water heater?
Generally “no,” you cannot remove these items as stated. This is because these items have become “attached” to the home and cannot be removed.
I am able to pay my land contract off early, but the land contract owner won't let me. What can I do?
The land contract provisions control. However, generally Michigan law, as well as federal law, have certain restrictions concerning land contracts and prepayment. I suggest having a competent real estate attorney review your land contract before taking further action.
Articles About Land Contracts
Rem illo nemo est.
Aliquid ut sequi libero ea nemo. Consequatur veniam vero ea
Sit et unde nulla similique molestias.
Est distinctio tenetur ex et ut sint enim. Hic et
Vel voluptate totam ut reiciendis.
Ut aliquam autem rerum et architecto asperiores. Veniam et est
Vitae qui ut et. Rem et in minus quia.
Et accusamus numquam non. Itaque esse vitae sit. Ipsam veritatis
Et quod sed natus vel.
Ut natus consequuntur cumque at. Ea repellendus laudantium accusantium autem
Cum blanditiis dicta sunt commodi.
Labore doloribus fugiat tenetur voluptas. Autem aut laudantium eum ullam
Your Legal Next Steps
Check Out Our Resource Library. We have numerous free books, articles, and industry checklists for your use.
Why Clients Choose Us
Soble Law, led by attorney David Soble, is a boutique law firm based in Michigan, focused on real estate law, probate, and contract litigation. With over 35 years of legal and big corporate banking experience, David Soble and his legal team offer a niche alternative to large national firms to informed clients who value senior-corporate-level counsel, financial and realty-industry insight, and education-forward service. They provide practical legal solutions that protect clients’ property and financial interests. Known for their no-nonsense approach, the firm represents individuals, families, and businesses across Michigan and Ohio, offering clear guidance through complex legal matters.
- Former Big Bank "Insider"
- HigHest Peer and Client Ratings
- 24 Hour Response
- 30 +Years of Legal & Business Experience
- Affordable & Approachable
- Innovative & Creative solutions
We Reduce Legal Exposure & Financial Risk. Every Day.
Real Estate Law
Real estate and finance law are their own legal specialties. So how do you determine which attorney you should work with...
Contract Law
Contracts regulate expectations between parties. Working without a contract is comparable to walking a high wire without a net.
Business Law
Attorneys having years of both practical business experience as well as legal expertise are rare. David Soble is one of these...
Financial Disputes
David Soble has decades of experience as a 'big bank insider." He and his business management team are uniquely situated when it comes to handling our clients stressful financial....
Litigation
We regularly and successfully litigate real estate and contract issues. While we prefer to first resolve our client's issues reasonably and amicably, we can and certainly will escalate....
Probate & Estate Planning
For most people, their home, or other real estate, is the most valuable asset that they own. We're dedicated to protecting our clients' assets and ensure that their legal interests...
Your Legal Next Steps
Check Out Our Resource Library. We have numerous free books, articles, and industry checklists for your use.
FAQs
Frequently Asked Questions
What is a Memorandum of Land Contract?
A memorandum of land contract is an instrument executed for the purpose of reflecting the existence of a land contract and the seller’s and purchaser’s interests in the real property subject to the underlying land contract. It contains only the names of the parties to the contract, the date of the execution, and the description of the real property involved. It does not disclose the consideration, the terms of payment, the time of performance, or the covenants or terms.
Can a purchaser legally sell or rent a house on land contract if there is a mortgage?
Once a purchaser comes into legal title to a property, they can sell a property on land contract. They will need to have a real estate attorney review the underlying mortgage to see if the “due on sale” provision of the mortgage will pose a problem or not.
Is there a penalty under law for failure to tender the deed on a land contract purchase (contract fulfilled by buyer in full)?
The closest thing to a statute dealing with failure to provide a deed upon a land contract payoff is a Michigan statute as it relates to providing discharges after 60 days. However, the land contract provisions control. So if the deed is not provided and the buyer performed as required, then the buyer can maintain an action for breach of contract claim.