My question involves real estate located in the State of: Michigan
My husband and I entered into a land contract on a home about a year ago. The land contract was drawn up by a licensed realtor and a title company. It was stipulated in the contract that we would apply for a traditional mortgage after a period of 18 months and the title would be transferred at that time.
We have discovered several problems with the home since living here the past year. Shortly after we moved in, the crawl space filled up with water and the sump pump stopped working. We had a plumbing specialist come out to the house and were told that the sump pump drainage line had not been buried below the frost line and it had frozen; the sump pump had continued to run but the water had nowhere to drain and so the pump motor eventually burned out.
We realized immediently that this was a preexisting problem. Prior to our purchase, the house had been nearly sold to four different parties and each time the sale fell through due to water in the crawl space (our realtor told us this). Days before we signed the sale agreement, the crawl space filled up with water and the seller sent out a plumber who replaced the sump pump and we were told that all was well and it was just a broken pump.
Because the drainage line is frozen in the winter, we had over a foot of water in the crawl space all winter and were forced to dump bleach into the crawl space to contain the mold growth. We have two children who are severe asthmatics and have allergies to mold so this is a urgent health concern.
We would like to back out of our land contract. We will be forced to pay for the drainage line to be rerouted and hooked up to the septic system if we stay and we can't afford that. What are our legal options regarding this case? If we stay, will any bank grant us a mortgage with this existing problem? Finally, if we can't get a mortage will that give us a way out of the land contract?