Listing a land contract

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Listing a land contract

I have a land contract on a building
that I have found to have serious
structural problems rotten and
failing structure that was cobbled
and covered by the original owner.
The deficiencies would not have been
found under a normal inspection. I
am considering listing the property
so that I can secure the balloon
payment for the original seller and
clear myself of the contract. If I
do so, can I be held liable for the
structural problems? Otherwise, I
may have to cancel the deal.

Asked on May 16, 2018 under Real Estate Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, you would be liable for the structural problems if you don't disclose them to the buyer before they enter into the contract. Real estate sellers have a legal obligation to disclose problems of which they are aware--as you are aware of the structural issues--but which would not be readily apparent to a buyer--such as problems which "would not have been found under a normal inspection." If you fail to disclose this relatively hidden ("latent") problem to a buyer, you will have committed fraud; the buyer can use that fraud as a basis to void or rescind the contract (return the building to you and get their money back) and/or seek monetary compensation (like the cost to repair the structure).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption