Michigan · land contract
Michigan land contract, explained.
A plain-English guide to land contract (also called contract for deed) in Michigan — statute, recording, default remedies, interest caps, and where deals actually happen.
MCL 600.5726–600.5759 (forfeiture); MCL 565.351–565.365 (recording memoranda); MCL 565.356
Either the contract or a memorandum of land contract may be recorded with the county Register of Deeds under MCL 565.356; recording is not mandatory but strongly recommended. Standard $30 recording fee.
Forfeiture or foreclosure at seller's option. Forfeiture under MCL 600.5728 requires 15-day notice; summary proceedings in district court under MCL 600.5750. Buyer has 90-day redemption period after forfeiture judgment if less than 50% paid, longer if more (MCL 600.5744).
Is land contract legal in Michigan?
Michigan recognizes 'land contracts' as a long-established and frequently used form of seller financing for both residential and commercial property.
How do you record a land contract agreement in Michigan?
Either the contract or a memorandum of land contract may be recorded with the county Register of Deeds under MCL 565.356; recording is not mandatory but strongly recommended. Standard $30 recording fee.
What happens if the buyer defaults?
Forfeiture or foreclosure at seller's option. Forfeiture under MCL 600.5728 requires 15-day notice; summary proceedings in district court under MCL 600.5750. Buyer has 90-day redemption period after forfeiture judgment if less than 50% paid, longer if more (MCL 600.5744).
What is the maximum interest rate?
11% for land contracts under MCL 438.31c (specific land contract usury rate); higher rates allowed for business/commercial transactions.
What disclosures are required?
Seller's Disclosure Statement required for 1-4 unit residential under MCL 565.951–565.966; lead-based paint (federal); no specific statutory CFD disclosures beyond general real estate.
Who's protected — buyer vs. seller
Buyer protections
Statutory redemption period after forfeiture; equitable interest recognized; right to record; can seek specific performance.
Seller protections
Streamlined summary forfeiture proceedings; choice between forfeiture (faster) and foreclosure (allows deficiency); ability to retain payments as liquidated damages upon forfeiture.
Where in the state do these deals happen?
Extremely common statewide: Detroit and Flint inner-city housing; Up North recreational/cottage properties; rural farmland in Thumb and West Michigan; commercial real estate.
Michigan cities
Per-city market notes for land contract buyers and sellers.
Notable case law
Graves v. American Acceptance Mortg. Corp., 469 Mich. 608 (2004); Day v. Lacchia, 175 Mich. App. 363 (1989).
Looking at a Michigan deal?
Send the parcel and the terms — we'll walk through whether land contract fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Michigan contracts and remedies are fact-specific — consult a licensed Michigan real-estate attorney before signing anything.