How would I protect my self the buyer in a land contract? Also this is being done with a purchase and sales contract right? I live in Grand Rapids mi.
@Tereak Sims not doing it sounds the best way to me
use a standard land contract agreement from your title company and close there. make sure it gets registered with the county registrar of deeds, which your title company will take care of. There are some clauses that you could remove if you are afraid of the sellers stability long term. I would make sure you are responsible for paying the property taxes, and you can take away the sellers right to borrow against the property. Set your land contract up so that it is fully amortized and that there are no ballon payments or prepayment penalties. Other than that land contracts have been used for a long time in Michigan, and it's a great way to buy Properties. Watch out for the scammers that are charging high interest rates and want shorter term balloon payments. it's a great way to buy with less down or on better terms. if you have any questions please let me know.
Record a Memorandum of Land Contract and have the deed placed in escrow with the title company. You do not want to have to chase down the seller in 10 years after the payments are fulfilled. Also, don't blow the deal over this, but if you could put a clause in the land contract stating that buyer has right of first refusal if the land contract is ever sold (technically it is not the land contract that is sold but rather the deed, new buyer would take the property subject to your land contract). Make sure that the land contract gives you the right to make modifications to the property without vendor's permission (provided that you are not doing a knock down).