Michigan Laws 565.357 – Land contract mortgage as security to debt or obligation; rights and interests of vendor or vendee; encumbrance; applicability of act to real estate mortgage; act additional to existing rights and rem
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(1) A vendor or a vendee under a land contract may grant a land contract mortgage to secure any debt or obligation that may be secured by a real estate mortgage. This subsection does not alter the effect of any contractual provisions which prohibit or result in a default upon the mortgage, sale, assignment, or further encumbrance of a vendor’s or vendee’s interest in a land contract which would otherwise be enforceable.
(2) For the purposes of section 6 to 11, the respective interests of a vendor or a vendee subject to a land contract mortgage includes all of the respective rights of a vendor or vendee including, without limitation, the vendor’s rights to payments and the vendee’s rights to conveyance. For the purposes of section 6 to 11, the interests of vendors and vendees subject to a land contract mortgage are real property interests.
Terms Used In Michigan Laws 565.357
- Contract: A legal written agreement that becomes binding when signed.
- Land contract mortgage: means a mortgage granted by a vendor or a vendee. See Michigan Laws 565.356
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Real estate mortgage: means a mortgage granted upon an interest in real property, other than a mortgage upon a vendor's or vendee's interest in a land contract unless the vendor and the vendee join in or subject their respective interests to a single mortgage. See Michigan Laws 565.356
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Vendee: means the vendee named in the land contract and the vendee's heirs, successors, or assigns. See Michigan Laws 565.356
- Vendor: means the vendor named in the land contract and the vendor's heirs, successors, or assigns. See Michigan Laws 565.356
(3) Unless otherwise provided by the parties, a land contract mortgage encumbers all of the vendor’s or vendee’s interests that are mortgaged, whether real, personal, or mixed, in the same manner and to the same extent as a real estate mortgage.
(4) This act does not apply to real estate mortgages unless the parties otherwise agree.
(5) This act is in addition to existing rights and remedies at law with respect to the financing and encumbering of the vendor’s and vendee’s interests in land contracts.