Each contract for the sale or transfer of residential property which is subject to a mortgage shall provide in boldface type substantially as follows:
   “Seller understands that consummation of the sale or transfer of the property described in this agreement shall not relieve the seller of any liability that seller may have under the mortgage(s) to which the property is subject, unless otherwise agreed to by the lender or required by law or regulation.”

Terms Used In Michigan Laws 445.1627

  • Contract: A legal written agreement that becomes binding when signed.
  • Lender: means a person or governmental agency, other than the Michigan state housing development authority, making real property loans, including, but not limited to, an individual, a federal or state chartered savings and loan association or savings bank, a state or national bank, a federal or state chartered credit union, an insurance company, or other lender approved as a mortgagee under the national housing act, 12 U. See Michigan Laws 445.1621
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Sale or transfer: means the conveyance of property, or of any right, title, or interest in property, whether legal or equitable, whether voluntary or involuntary, by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than 3 years, lease option contract, or any other method of conveyance of real property interest. See Michigan Laws 445.1621
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