Not So Fee Simple: COA Rules Land Contract Sufficient for Replacement Cost Under Policy Provision
Safeguards 01/03/2018

In an opinion set for publication, Debra Batton-Jajuga v Farm Bureau Gen Ins Co of Michigan, ___ Ct App ____ (2017) (Docket No. 334130), the Court of Appeals essentially adopted the holding from the Iowa Supreme Court stating a land contract satisfies the ‘actual and complete’ replacement requirement under the policy even though another held legal title pending the fulfillment of the land contract. This opinion confirms that under the doctrine of equitable conversion, equity treats the sale as performed when the land contract becomes effective, even if the buyer has not paid the contract off in full. 

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