What is a Land Contract?

An agreement between a buyer (vendee) and
seller (vendor) that states that a buyer is
purchasing property, but will not receive the legal
title until the debt is paid. The land contract must
be in writing to be enforced, and either the land
contract or memorandum of land contract must be
recorded to be insured.

If a vendee is borrowing money from a bank in order
to pay off the vendor on homestead property, does
the vendee’s spouse need to join the mortgage?

Yes. If the vendee is married, holds title alone and
the property is homestead, the spouse must sign.
This is a refinance. The land contract was the
purchase money mortgage.

If a vendee is now borrowing from a bank to pay off
the vendor, do I need to show judgments against the
vendee?

Yes. You must show the judgments. The bank is
refinancing the purchase money lender (the
vendor) so the bank does not have priority – they
are not the purchase money lender.

If a vendor is issuing a deed in fulfillment of a land
contract, do I need to show judgments against the
vendor that were recorded after the land contract
was signed and recorded?

No. In this case, the vendee’s interest has priority
over the judgments against the vendor.

If a vendor is issuing a deed in fulfillment of a land
contract, do I need to show judgments against the
vendor that were recorded after the land contract was
signed and recorded?

No. In this case, the vendee’s interest has priority
over the judgments against the vendor.

Do I need to show judgments against a vendor that
were recorded before the land contract was recorded?

Yes. The judgments must be paid off at the closing.

Do I need to show judgments against the vendee that
were recorded before the land contract was signed
and recorded?

Yes. Like in a sale transaction, judgments against
the buyer (vendee), must be listed in Schedule B of
the policy.

What is needed to effectuate an assignment of
vendee’s interest in a land contract?

The original vendee should provide the assignee
with both an assignment and a quitclaim deed to
convey their interest in the property.

What is necessary to record after a vendor has filed a
forfeiture of land contract, to eliminate the interest of
the vendee?

The judgment of possession and order of eviction
both need to be recorded.