Resell Land Contract?
Question: Is it legal for a person who bought a property on a land contract to sell it as a land contract to someone else?
We sold a house in Covert, Michigan, on a Land contract and moved to Illinois. Is it legal for those people to sell land contract to someone else now?
Answer: Unfortunately, unless your land contract had a due on sale clause in it, a purchaser on land contract can resell the property. Technically this is called a Vendee's Assignment of Land Contract. So long as the new purchaser has at least as good of credit and trustworthiness as the original purchaser, then Michigan law generally allows the sale or assignment. If you need help, let us know, we prepare numerous Land Contracts and review land contracts for our clients.
Attorney: Mark Miller