My parents drew up a land contract. To sell a home in Bay City, MI. The person buying the home has not paid several payments over the years as well as failing to pay the property taxes and Home insurance. Which he was obligated to in land contract. This person says he is willing to allow my parents to have the house back since he has defaulted on payments and taxes. The land contract was registered 11-2-2006 in Bay County. If both parties agree to dissolve the contract can they do that with out foreclosure proceedings?
Yes, you can terminate the land contract through voluntary agreement, however, you need to be very careful with the terms of the argeement. Some considerations that need to be considered to protect your parents are: Insuring that title is clear, outstanding tax bills which attach to the property, outstanding water bills which attach to the property, any possible municipal violations, the condition of the property, etc. As a result of the potential for problems, your parents should have a real estate attorney draft the agreement and any other necessary documents (i.e deeds) to insure that your parents are protected.