The most common type of land contract breach by a buyer involves payment issues. Any missed or partial payment may cause problems for the buyer. If a buyer misses a payment or has not suspended the entire payment, the seller can take action. The most common measure (called a “remedy”) taken by a seller is to lose (terminate) the contract. Enforcement is a much rarer means. A seller can use both remedies in the event of an infringement. The legal status of land contracts varies from jurisdiction to jurisdiction. [wave] It is customary for instalment payments of the purchase price to be similar to those of mortgages. The amount is often determined according to a mortgage amortization plan. Each instalment payment is a partial payment of the purchase price and a partial payment of interest on the unpaid purchase price. This is comparable to mortgage payments, which are a partial repayment of the principal amount of the mortgage and a portion of the interest. Visit the home Ownership Service page on the Michigan Department of Health and Human Services website to learn more.
A land contract is a unilateral contract and cannot be assigned to another buyer without the agreement of the seller providing the financing. Sometimes houses for sale by land contract require a lot of repairs. Before signing the contract, the buyer should inspect the property to see what repairs are needed. It`s best to let an expert do this, as most land contracts require the buyer to do all the repairs and wait for the house. A land contract – often described by other terminologies mentioned below – is a contract between the buyer and seller of real estate, in which the seller makes financing available to the buyer upon purchase and the buyer pays the resulting loan in instalments. Under a land contract, the seller retains legal ownership of the property, while allowing the buyer to take possession of it for most purposes other than legitimate ownership. . . .