Real Estate Investor · Kalamazoo, MI · Member since 2015 · 120 posts · 37 votes
Fellow BP member,
I am in the middle of turning my contract into a land contract with the seller and I wondering if this is usually done or recommended to be done with a title company or is this okay to be done at the court house though quit-deed? I have already gotten the tittle search done and got them back clean from the title company. So the property is owned free and clear. But for the purpose of doing what I please with the house and start renovations, should I secure more than just a Land Contract? Thank you in advance for your time and feedback.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y
I don't understand why you would consider using a quit claim deed when doing a land contract sale. The deed does not change hands until the terms of the land contract have been satisfied. Quit claim deeds can easily cloud the chain of title and should usually be avoided. A land contract sale requires the contract to be drawn--if you are inexperienced it is probably wise to consult an attorney for this. The sale can be closed through a title company but it does not have to be--this will depend on the comfort level and experience of both parties. A memorandum of land contract (not the contract itself) should be recorded on the public record. This clouds the title and helps protect the buyer against the seller refinancing or selling the house to another party.