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Land Contracts – Forfeiture Process
Note: Forfeiture of a land contract is only allowed if the contract expressly gives the seller the
right to declare a forfeiture. MCL 600.5726.
If there is a default (buyer fails to pay the installments due under the contact or breaches the
contract), seller may seek to retake the possession of the property through the forfeiture process.
First, the seller must serve a written notice of the forfeiture upon the buyer.
Unless the land contract provides for a longer time, the buyer has 15 days after being served with
the notice of forfeiture to cure the default (paying the amount that is past due). MCL 600.5728.
Note: The seller cannot accelerate the entire amount due on the contract under the forfeiture
process.
Once the buyer’s time to cure has expired, the seller can file a complaint for possession in district
court. MCL 600.5735.
The court will issue a summons setting a hearing date within 30 days after the summons is
issued. MCL 600.5735.
If the seller is successful at trial (the judge finds that there is a default/breach of contract), the
judge may enter a judgment of possession. MCL 600.5741.
If a judgment of possession is granted, the buyer has 90 days to redeem the property if less than
50% of the purchase price has been paid or 6 months to redeem if 50% or more of the purchase
price has been paid. The redemption amount is the amount that is past due. MCL 600.5744(4).
Following the expiration of the redemption period, the seller may move for an order of eviction.
MCL 600.5744(4).
