Michigan · contract for deed
Michigan contract for deed, explained.
A plain-English guide to contract for deed (also called land contract) 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 contract for deed 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 contract for deed 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 contract for deed 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 contract for deed 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.