In Michigan, in order to forfeit a land contract, the terms of the land contract must specifically allow for that remedy. If the land contract does not allow for forfeiture, you must foreclose or sue for breach of contract. Forfeiture is the preferable remedy for many sellers as it is the fastest and most efficient way to obtain possession of the property. The disadvantage of a land contract forfeiture, is that you are not allowed to recover a money judgment for past due payments or accelerate the debt. If you want to pursue these remedies, you should file an action for foreclosure or for breach of contract. Rather, in a land contract forfeiture, the purchaser can pay what is currently due to retain possession. However, you the seller could obtain a money judgment for a reasonable rental rate during the redemption period in a Land Contract Forfeiture action.
Provide Notice to the Purchaser
Prior to commencing a land contract forfeiture you must provide and serve notice. You can use the Forfeiture Notice for Land Contract form from SCAO (DC 101). If the past due payments are not made within fifteen (15) days, you can then file a summons and complaint.
File the Summons and Complaint
If you are not paid within fifteen (15) days of serving the Forfeiture Notice, you can file a Summons and Complaint in the local District Court. You can use the Summons Form SCAO (DC104) and Complaint Form (DC 103). The Court should provide you with a court date and then you will need to serve these forms on the purchaser.
If the seller does not answer the complaint or appear at the hearing, obtain a default judgment. If the seller does appear, be prepared to present proofs regarding the money owed. Alternatively, the Court may set a trial date and enter a discovery order.
Order of Eviction
If the purchaser fails to pay the amount contained in the Judgment, you can obtain an Order of Eviction and have the Court Officer physically remove them from the premises. After the entry of a judgment of possession, the purchaser will have either 90 days or 180 days to redeem the land contract before a judgment of possession can enter. If the purchaser has paid less than 50% of the land contract off, the redemption period if 90 days, if they have paid more than 50% of the land contract off, the redemption period is 180 days.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.
What determines Avvo Rating?Experience & background
Years licensed, work experience, education
Legal community recognition
Peer endorsements, associations, awards
Legal thought leadership
Publications, speaking engagements
This lawyer was disciplined by a state licensing authority in .
Disciplinary information may not be comprehensive, or updated. We recommend that you always check a lawyer's disciplinary status with their respective state bar association before hiring them.