Legal Question in Real Estate Law in Michigan

I sold a business in Michigan in December of 2008 on a one-year land contract. Payments $1000 per month and payoff in December 2009. They weren't able to secure financing so they have continued to pay me $1000 per month. The land contract has never been amended from the original. Today I learned that the people who are buying the business from me on a land contract "sold" the business to another couple also on a land contract. They are making monthly payments that is being held in escrow by the people I "sold" the business too. Is this legal? What steps would you advise me to take. Obviously, they can't buy it from "Tuckers" because "Tuckers" don't legally own it. Thank you.


Asked on 1/15/10, 7:05 pm

1 Answer from Attorneys
Kevin Hirzel Meisner & Associates, P.C.

Your question is somewhat unclear. When you sell a business you either sell the ownership interest in the business or the assets. Only land would be sold on a land contract, which might be one of the assets of the business. If the balloon payment was due on the land contract in December of 2009, and they failed to pay it, you are under no obligation to extend the land contract unless the terms of the land contract require you to do so. You remedy is either to pursue an action for breach of contract, foreclose on the land contract, or forfeit the land contract depending on what remedy is desired. I would recommend pursuing one of these owners. The person that they allegedly "sold" their interest too may also sue the purchaser for attempting to sell something they do not own. If they are in possession of the premises, I would recommend including them in any action as well.

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Answered on 1/21/10, 7:07 am


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