Updated Land Contract Information for REALTORS®
July 1, 2010
Source: Greg McClelland
Job Title: Legal Counsel
In an effort to crack down on mortgage fraud, Congress passed the Safe and Fair Enforcement for Mortgage Licensing Act ("SAFE" Act), prompting Michigan to pass the Mortgage Loan Originator Licensing Act, Act 75 of 2009 ("Originator Act").
REALTORS® who are simply performing their regular duties in conjunction with a seller who is providing some form of seller financing, are not required to comply with the requirements of the Originator Act.
Further, sellers who are selling their own residence or non-residential property through some form of seller financing, do not need to comply with the Originator Act.
Sellers who are offering seller financing on any type of property to members of their immediate family are similarly exempt. On the other hand, sellers who do not fit in any of these categories - i.e., sellers who are selling residential property other than their principal residence to persons other than members of their immediate family through the use of some form of seller financing - may be required to comply with the Originator Act. These sellers should seek the advice of legal counsel.
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