Land Contract Checklist

Before you buy, make sure the following list applies to your land contract:

  • Hire title company to determine tax status and ensure owner has clear title.
  • Confirm the total amount to be paid, including monthly payment, late fees, balloon payment and interest rate.
  • Confirm it explains who is responsible for paying property taxes, hazard insurance and any information about an escrow arrangement.
  • Have a licensed inspector do a complete inspection of any property you intend to purchase.
  • Be aware of clauses limiting your legal rights to eviction proceedings, mortgaging the property or mandating that disputes be settled via mediation.
  • Have a lawyer review your land contract before you sign. Contact Legal Services of South Central Michigan at 888-783-8190.

 

After you buy:

  • Record the entire land contract at the Register of Deeds.
  • Ensure you receive a signed and notarized copy that is stamped as having been recorded.
  • Speak with an insurance agent to ensure any personal property is covered. 
  • If this is your principal residence, file a homestead affidavit with the local assessor.