In Michigan, a land contract is also known as:
Question & Answer
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Lease option
A lease option is a different arrangement where the tenant has the option to purchase the property at a later date, but it doesn't involve the same structure as a land contract where the seller retains title until payment is complete.
Contract for deed
Mortgage assumption
A mortgage assumption occurs when a buyer takes over the seller's existing mortgage, which is fundamentally different from a land contract where the seller provides the financing and retains title.
Wraparound mortgage
A wraparound mortgage involves a new mortgage that includes the existing mortgage, creating a layered financing structure, which is distinct from a land contract where the seller directly finances the purchase.
Why is this correct?
In Michigan, a land contract is specifically known as a contract for deed. This is the official terminology used in Michigan real estate law, referring to the same instrument where the seller retains title until the purchase price is paid in full by the buyer.
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