Michigan § 445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages.

Michigan Statutes

§ 445.1625 — Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages.

Michigan § 445.1625

Ch. 445TRADE AND COMMERCE

Act 351 of 1984DUE-ON-SALE CLAUSES (445.1621-445.1629)

This text of Michigan § 445.1625 (Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages.) is published on Counsel Stack Legal Research, covering Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mich. Comp. Laws § 445.1625 (2026).

Text

DUE-ON-SALE CLAUSES (EXCERPT) Act 351 of 1984 445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages. Sec. 5.

(1)With respect to any residential real property loan, other than a residential real property loan originated by a federal savings and loan association, a federal savings bank, a national bank, or a federally chartered credit union, if the property securing the loan was sold or transferred prior to October 15, 1982 either on any land contract which does not have a due-on-sale clause or subject to a second mortgage in favor of the seller which does not have a due-on-sale clause, then upon 1 or more subsequent sales or transfers of the property without a payoff of that land contract or second mortgage, a lender shall not enforce a

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DUE-ON-SALE CLAUSES (EXCERPT) Act 351 of 1984 445.1625 Limitations on enforcement of due-on-sale clause during term of land contracts or second mortgages. Sec. 5. (1) With respect to any residential real property loan, other than a residential real property loan originated by a federal savings and loan association, a federal savings bank, a national bank, or a federally chartered credit union, if the property securing the loan was sold or transferred prior to October 15, 1982 either on any land contract which does not have a due-on-sale clause or subject to a second mortgage in favor of the seller which does not have a due-on-sale clause, then upon 1 or more subsequent sales or transfers of the property without a payoff of that land contract or second mortgage, a lender shall not enforce a due-on-sale clause in its loan contract. (2) The limitations on enforcement of a due-on-sale clause in subsection (1) shall remain in force only for the term of any land contracts or second mortgages in effect on October 15, 1982 not containing a due-on-sale clause or until those land contracts or second mortgages are paid off, whichever occurs first.