Land Contract Forfieture

[MJHeikkila]

Michigan - We have 50% ownership in a condo. We are buying the other 50% on land contract. We got behind and are considering forfieture/default. Seller threatens to sue for contract amount if we do. Can he? Default language states: "If any installment...is not paid...the entire unpaid balance shall become due and collectable at the election of the vendor and the vendor shall be entitiled to all remedies provided for by the laws of this state..."
Seems to me if we default, his being able to keep all payments made to date and full ownership in his 50% stake is remedy enough. Also, he wants us to sign over our half so we can sell the condo as a whole, pay him out his contract, and we get what's left.

 

[HomeGuru]

Michigan - We have 50% ownership in a condo. We are buying the other 50% on land contract. We got behind and are considering forfieture/default. Seller threatens to sue for contract amount if we do. Can he? Default language states: "If any installment...is not paid...the entire unpaid balance shall become due and collectable at the election of the vendor and the vendor shall be entitiled to all remedies provided for by the laws of this state..."
Seems to me if we default, his being able to keep all payments made to date and full ownership in his 50% stake is remedy enough. Also, he wants us to sign over our half so we can sell the condo as a whole, pay him out his contract, and we get what's left.

**A: Seller can sue for the total and his equity share or % interest in the property would be deducted from what you would owe. It appears that you guys made a mess of the deal as it's rather confusing.