In 2021, Barbara sold her home in Cambridge to Kevin using an installment land contract (also called a contract for deed). Kevin has been making payments for three years but has now missed two consecutive payments. Barbara wants to reclaim the property. Under Massachusetts law, which of the following best describes Barbara's legal position?
Correct Answer
A) Barbara must follow the standard mortgage foreclosure procedures under MGL Chapter 244 before recovering the property
Massachusetts courts have held that installment land contracts (contracts for deed) where the buyer has made substantial payments and has been in possession for a significant period are treated similarly to mortgage transactions. Under the doctrine of equitable mortgage, Massachusetts courts may require the seller to follow mortgage foreclosure procedures under MGL Chapter 244 rather than allowing simple contract termination or eviction. This protects the buyer's equity interest accumulated over years of payments. After three years of payments, Kevin has likely built substantial equity that courts would protect.
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