Michigan Land Contract Attorney — Seller Representation, Buyer Default & Forfeiture

A land contract is not a mortgage, and the legal process to enforce one is nothing like a foreclosure. If your buyer has stopped paying — or you need a land contract drafted and structured correctly from the start — CF Legal has handled these matters in Genesee County courts for more than 30 years.

What Is a Land Contract Under Michigan Law?

A land contract — sometimes called an installment sale agreement or contract for deed — is a seller-financed real estate transaction. The seller retains legal title to the property while the buyer takes possession and makes payments over time. Title transfers to the buyer only after the full purchase price has been paid.

Because the seller holds title throughout the payment period, the legal remedies available when a buyer defaults are governed by Michigan's land contract statutes, not by mortgage foreclosure law. This distinction matters enormously when enforcement becomes necessary.

Who We Represent in Land Contract Matters

CF Legal primarily represents sellers and landlords in land contract transactions and disputes. Our clients are typically property owners who entered a land contract in good faith and now face a buyer who has stopped paying, is damaging the property, or is otherwise in breach of the agreement.

We also represent sellers at the drafting stage — before any dispute arises — to make sure the contract terms, forfeiture provisions, and default remedies are clearly defined and enforceable under Michigan law.

Seller Representation — Default, Forfeiture, and Recovery

When a buyer defaults, a seller's first instinct is often to simply take the property back. Michigan law does not work that way. The forfeiture process under MCL 600.5726 et seq. requires specific notices, waiting periods, and in many cases a court proceeding before the seller can recover possession. We guide sellers through every step of that process, accurately and efficiently.

Land Contract Drafting and Transaction Counsel

A well-drafted land contract protects the seller's interests from day one. We prepare installment sale agreements that address payment terms, default definitions, forfeiture rights, insurance and tax obligations, and the conditions under which title transfers. Getting these terms right at the outset is far less expensive than litigating ambiguous language later.

The Michigan Land Contract Forfeiture Process — Step by Step

Step 1: Notice of Forfeiture

The process begins with a written Notice of Forfeiture served on the buyer. The notice must state the amount owed, identify the default, and give the buyer a statutory period to cure — typically 15 days for nonpayment under most land contracts, though the specific terms of your agreement and the nature of the default affect this timeline.

Step 2: Buyer's Right to Cure

During the notice period, the buyer has the right to cure the default by paying all amounts owed, including any costs specified in the contract. If the buyer cures within the statutory window, the forfeiture proceeding stops and the contract remains in effect. If the buyer does not cure, the seller may proceed.

Step 3: District Court Forfeiture Proceeding

If the buyer fails to cure, the seller files a forfeiture action in district court. In Genesee County, this means filing in the 67th District Court. The court will set a hearing date, and if the seller prevails, the judge enters a judgment of forfeiture. The buyer then has a redemption period — typically 90 days for residential property under Michigan law — during which they may still pay the full amount owed and retain the property.

Step 4: Writ of Restitution and Recovery of Possession

If the buyer does not redeem within the statutory period, the seller obtains a writ of restitution and the court orders the buyer to vacate. At that point, the seller recovers possession and the buyer forfeits all payments made and all interest in the property. We handle the full proceeding from notice through writ, so sellers are not navigating this process alone.

What Happens to the Payments Already Made?

One of the most significant features of land contract forfeiture — and one that distinguishes it sharply from mortgage foreclosure — is that a buyer who is forfeited out loses all payments previously made. There is no equity recovery for the buyer the way there might be in a foreclosure surplus. This outcome underscores why buyers in default sometimes resist the process, and why having experienced legal counsel representing the seller matters.

When Forfeiture Escalates to Foreclosure

In some circumstances, forfeiture is not the appropriate remedy — particularly when the buyer has paid a substantial portion of the purchase price or has built significant equity in the property. Michigan courts may require the seller to proceed by foreclosure rather than forfeiture in those situations. We evaluate each case individually and advise sellers on the correct legal path before any action is filed.

Common Land Contract Disputes We Handle

Not every land contract matter involves a buyer who simply stopped paying. We represent sellers across a range of disputes that arise during and after an installment sale agreement:

• Buyer nonpayment and forfeiture proceedings
• Buyer failure to maintain property insurance or pay property taxes
• Property damage or waste committed by the buyer during the contract period
• Disputes over whether a default has occurred or been properly cured
• Disagreements about the remaining balance owed at payoff
• Seller refusal to convey title after full payment — cases where we represent buyers
• Forfeiture proceedings that must be converted to foreclosure due to buyer equity

What to Expect Working with CF Legal

We answer our phones. When you call CF Legal at 810-232-1112, you reach a person — not a voicemail system — and if we miss your call, we return it within 24 hours. For land contract matters that are time-sensitive, that responsiveness matters.

Our attorneys have more than 30 years of combined real estate legal experience in this market. We handle land contract matters from our Flint office at 302 E. Court St. and our Grand Blanc location, serving clients throughout Genesee County and the surrounding region.

Frequently Asked Questions — Michigan Land Contracts