Who pays taxes (Riverview Michigan) when a home is sold on land contract?

Question

I am considering purchasing on land contract and I assumed I would pay the taxes, since it will be registered with the county. The seller believes he will have to pay them, just thought I would get other opinions. Do i ask the city who will pay them? If the sale is registered with the county wouldnt the city bill me? Thanks.

Answer 1

I suggest having your lawyer (not a shared lawyer, but someone you pay for to represent you) review this transaction and write clauses to protect your interests for this home.

There are questions in other forums where homeowners simply stopped making payments, the home went into foreclosure and the contract holder was not even aware until the sticker was placed on the door.  You need to protect yourself from having that happen.

What happens if you are transferred out of State before you're able to purchase? Get a lawyers advice!

Answer 2

This means that his payment does not include the taxes right now.  and if you plan on holding this property for a considerable amount of time.  I would hold the monthly amount in an interest baring account of your own so when they are do you can cover it yourself and make the (very) little money from the bank.

******* warning*******  this can be a sticky situation.... land contracts and the Michigan mortgage market.  I know I hold a couple myself.  all my payments are escrowed though.  So I built into their payments.