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.