Michigan Land Contract Preparation
Seller financing works when the paperwork is specific. Price, interest, balloon date, taxes, insurance, repairs, and what happens on default — all written down before anyone moves in.
Important: Clear Path Document Services is a non-attorney document preparation service and cannot provide legal advice. No attorney-client relationship is created. Read full disclaimer
Quick Answer
A Michigan land contract is a seller-financed sale. The buyer takes possession and makes payments; the seller keeps legal title until the balance is paid, then delivers a deed. A workable land contract states the purchase price, down payment, interest rate, payment amount and due date, any balloon payment date, who pays property taxes and insurance, who handles repairs, and what happens if the buyer defaults. Most parties record a memorandum of land contract with the county Register of Deeds rather than the full contract. Michigan requires a Property Transfer Affidavit after the transfer, and the transfer may uncap taxable value. Clear Path prepares the contract to the terms you and the other party agree on — we don't negotiate them for you.
Who qualifies for this service?
This document preparation service is a fit for Michigan residents who match the criteria below. If your situation is different, contact us and we'll tell you whether we can help or whether you should speak with an attorney.
- Sellers financing a sale because the buyer can't get conventional financing
- Buyers with credit or income history that banks won't lend on
- Family members selling property to a relative over time
- Investors selling rental property with seller financing
- Sellers of vacant land, cottages, and parcels lenders won't touch
- Parties who agreed on terms verbally and need them written correctly
How the process works
Clear, predictable steps from intake to court-ready paperwork.
Tell us the deal
Property, parties, price, down payment, interest, payment schedule, and balloon date if any.
We review your matter
We pull the recorded legal description and flag terms that are missing or unclear.
Written quote
Flat preparation fee, with recording and transfer costs listed separately.
Contract prepared
Full land contract plus a recordable memorandum, prepared to your agreed terms.
Signing and notarization
We notarize the signatures in office or at your location.
Recording and assessor filing
Recording instructions for your county plus the Property Transfer Affidavit.
Paperwork we organize for you
Document preparation only. We do not represent you in court.
Documents and information you'll need
- Property address and parcel identification number
- A copy of the current recorded deed
- Full legal names and addresses of all sellers and buyers
- Agreed price, down payment, interest rate, and monthly payment
- Balloon date, if there is one
- Information about any existing mortgage on the property
Common mistakes to avoid
Small errors can cost you weeks. Here's what we see most often.
- Copying the legal description from a tax bill instead of the recorded deed.
- Not saying who pays property taxes and insurance, which is the single most common source of disputes.
- Leaving out a balloon date or the consequences of missing it.
- Never recording a memorandum, so the buyer's interest never appears in the public record.
- Ignoring an existing mortgage with a due-on-sale clause on the seller's side.
- No written default and cure language, which makes forfeiture messier than it needs to be.
Local Michigan considerations
Land contracts are recorded with the Register of Deeds in the county where the property sits, and most parties record a memorandum rather than the full contract to keep financial terms private while still protecting the buyer's interest. Michigan requires a Property Transfer Affidavit with the local assessor after a transfer, and a transfer of ownership can uncap the property's taxable value, which usually means a higher tax bill — check with the assessor before closing. Sellers with an existing mortgage should look at the due-on-sale clause in their loan before signing a land contract. County recording fees and formatting standards vary, so we prepare to your county's requirements.
Key Terms
- Land contract
- A seller-financed sale where the buyer possesses the property and pays over time while the seller retains legal title.
- Vendor / vendee
- The seller and buyer under a land contract.
- Balloon payment
- A large lump sum due on a set date, typically the remaining balance after a period of regular payments.
- Equitable title
- The buyer's ownership interest in the property while the seller still holds legal title.
- Due-on-sale clause
- A mortgage provision letting a lender demand full payment if the owner transfers the property.
- Uncapping
- The reset of a property's taxable value after a transfer of ownership, which usually increases property taxes.
People Also Ask
Reviewed and updated by the Clear Path document team. Informational only — not legal advice.
Ready to get your paperwork started?
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