Land Contracts in Michigan: What Buyers and Sellers Should Know

Craig Fiederlein

Land contracts are common in Michigan, especially when a buyer can’t qualify for a traditional mortgage. They can be a useful path to homeownership, but they come with risks for both sides if the agreement isn’t carefully drafted.

 

How a Land Contract Works

In a land contract, the seller acts as the lender. The buyer moves in and makes payments directly to the seller, often with a down payment and interest. The seller keeps legal title until the contract is paid off, usually through a final balloon payment. The buyer holds what is called equitable title, which gives them the right to use the property and eventually receive the deed.

 

Risks for Buyers

  • Losing your investment. If you fall behind, the seller may be able to take the property back through forfeiture, and you could lose what you’ve already paid.
  • Hidden liens or mortgages. If the seller has a mortgage on the property and stops paying it, your home could be at risk.
  • Balloon payments. Many contracts require a large payment after a few years. If you can’t refinance, you may default.

 

Risks for Sellers

  • Buyer default. Getting the property back can take time and court involvement.
  • Property damage. The buyer controls the home while you still hold title.
  • Tax and insurance issues. Responsibilities must be clearly assigned in the contract.

 

Protecting Yourself

Whether you’re buying or selling, a well-drafted land contract should clearly cover payment terms, interest, taxes, insurance, maintenance, and what happens if someone defaults. Buyers should also make sure a memorandum of land contract is recorded with the Genesee County Register of Deeds, so their interest in the property is on public record.

 

Get the Agreement Reviewed First

Land contracts are often written using generic forms that leave out important protections. Having an attorney draft or review the contract before you sign can prevent serious problems later.

If you’re considering a land contract in Flint or Genesee County, call CF Legal at 810-232-1112 or contact us online to schedule a consultation.

About The Author

Craig R. Fiederlein | Attorney

Smiling man in a blue suit and tie outdoors, with a blurred background.

Craig R. Fiederlein has spent more than three decades practicing law in Genesee County — long enough to know the courts, the process, and the people who matter inside them. He co-founded what was then Christensen & Fiederlein PC, building a firm that became one of the region's most recognized names in probate and estate law. His former law partner is now a sitting judge in Genesee County. That kind of history isn't a footnote — it reflects the depth of standing Craig and this firm have earned over a long career in this community.


Craig's practice centers on probate administration, estate planning, elder law, real estate, and business law. Whether a family is navigating a contested estate, an aging parent needs a Medicaid-compliant plan, or a property owner needs sound legal counsel on a transaction, Craig brings the kind of experience that only comes from doing this work, in this county, for a very long time.