Buying a home in Detroit can come with more than a purchase agreement and a mortgage application. During a title search, closing, seller-financed transaction, or private loan, you may encounter a document called an Affidavit of Interest in Real Estate.

The name can sound serious: and it is worth taking seriously. But the document is easier to understand once you know what it does, what it does not do, and why it may appear in a real estate transaction.

Here is a simple guide for Detroit buyers and sellers.

What is an Affidavit of Interest in Real Estate?

An affidavit is a written statement made under oath. The person signing it: called the affiant: swears that the facts in the document are true to the best of their knowledge.

An Affidavit of Interest in Real Estate is a sworn statement about someone’s claimed or known interest in a specific property.

That interest could relate to:

• A private loan
• An unrecorded mortgage
• A land contract
• A purchase agreement
• An equitable interest
• A right to receive proceeds from a sale
• A dispute about ownership or title
• Facts involved in a quiet title case

The document may be notarized and recorded with the county Register of Deeds. For a Detroit property, that generally means the Wayne County Register of Deeds.

The exact title and format can vary. In Michigan, affidavits that affect real property may fall under MCL 565.451a, which allows certain affidavits containing facts related to real estate title to be recorded.

What does it do?

The main purpose of an affidavit of interest is to create a public record and put other people on notice.

For example, imagine that a private investor lends money to a property owner. The loan agreement says the property is being used as collateral, but the mortgage has not yet been recorded. The lender may record an affidavit describing the parties, the property, and the claimed interest.

Someone reviewing the title later may see that affidavit and realize:

> “There may be another person or company with an interest in this property.”

That notice can matter to:

• A future buyer
• A title company
• A mortgage lender
• A real estate attorney
• Another investor
• A court handling a property dispute

Michigan law specifically addresses affidavits involving an unrecorded mortgage. The affidavit must identify the parties to the mortgage and include a copy of the unrecorded mortgage to fit within that statutory process.

An affidavit can also help document facts related to possession, foreclosure, an interest that may end, or the terms under which a property is being held or transferred.

What an affidavit does not do

This is the most important part for a buyer:

An Affidavit of Interest does not transfer ownership.

It does not, by itself:

• Put the signer on the deed
• Sell the property
• Replace a purchase agreement
• Automatically create a valid mortgage
• Prove that the person making the claim is correct
• Remove an existing lien
• Guarantee that a lender will be repaid
• Clear a title problem

Think of the affidavit as a sworn statement and notice document. It can describe or support an interest, but it is not usually the document that creates the underlying ownership or security rights.

A mortgage, land contract, purchase agreement, deed, or other legally enforceable instrument is generally what creates the actual interest or obligation. The affidavit may document facts about that instrument or alert others that a claim exists.

Recording an affidavit also does not automatically make an unsupported claim valid. If the facts are wrong, incomplete, or disputed, the document may still need to be challenged or resolved through legal action.

That is why buyers should never assume that an affidavit is “just paperwork.”

Why might a Detroit buyer encounter one?

Detroit’s housing market includes traditional home purchases, renovation projects, investor transactions, land contracts, inherited properties, and private financing. That variety creates several situations where an affidavit of interest might appear.

1. Seller-financed purchases

In a seller-financed deal, the seller may agree to accept payments directly from the buyer instead of requiring the buyer to obtain a traditional bank mortgage.

The arrangement may use a land contract or another financing structure. Either party may want the transaction and the related interest reflected in the public record.

If you are buying through seller financing, make sure you understand:

• Who holds legal title
• When the deed will transfer
• What happens if a payment is late
• Who pays taxes and insurance
• Whether there are existing mortgages or liens
• Whether the contract has been recorded

Michigan Legal Help provides an overview of land contracts, but your own attorney should review the specific agreement before you sign.

2. Hard money loans

Hard money loans are often used by investors or buyers renovating a property. A private lender may provide funds based on the property’s value and the borrower’s repayment plan.

The lender typically wants a formal security instrument, such as a mortgage, to protect the loan. An affidavit of interest may also be used to put third parties on notice of the lender’s claimed interest, especially if the mortgage is unrecorded or the transaction is still being documented.

For a buyer purchasing a renovated home, this may come up during the title search if the investor’s financing was not properly released or recorded.

3. Private loans from family, partners, or investors

Not every real estate loan comes from a bank. A Detroit property owner may borrow money from a family member, business partner, or private investor.

Informal financing can create serious title issues when the parties rely on verbal promises or incomplete paperwork. A recorded affidavit may signal that someone claims an interest in the property even if the loan documents are not easy to find.

Do not assume that a private loan is harmless because it was made between people who know each other.

4. Land contracts and equitable interests

An equitable interest is generally an interest recognized through an agreement or fairness principles, even when someone does not yet hold legal title.

A buyer making payments under a land contract may have an equitable interest. A lender may claim an equitable lien based on a loan agreement. An investor may claim rights under a purchase or development agreement.

These interests can affect whether a property can be sold cleanly. They may also affect who must approve a transaction.

5. Quiet title situations

A quiet title action is a court case used to resolve competing claims or uncertainty about ownership.

A Detroit property may need quiet title work because of:

• Missing heirs
• Old mortgages
• Unreleased liens
• Tax foreclosure history
• Errors in prior deeds
• Conflicting ownership claims
• Unrecorded agreements
• Improperly documented transfers

An affidavit of interest could be part of the recorded history or evidence involved in the dispute. If your title company or attorney mentions quiet title, ask what claim is being addressed and how it could affect your closing timeline.

What should a buyer do if one appears?

Do not panic. A recorded affidavit does not automatically mean the deal is over. But do not ignore it either.

Ask your title company or real estate attorney to explain:

1. Who recorded the affidavit?
2. What property does it identify?
3. What interest is being claimed?
4. Is there an underlying mortgage, contract, or loan agreement?
5. Was that underlying document recorded?
6. Has the claimed interest been released or satisfied?
7. Does the person who recorded it need to sign a release or approve the sale?
8. Will your title insurance policy cover or exclude the issue?
9. Could the claim affect your lender’s requirements or closing date?

Get answers in writing whenever possible.

A title company may be able to confirm whether the issue has been resolved. However, a title company is not a substitute for your own legal advice when ownership, financing, or disputed rights are involved.

Should you sign one?

Only after you understand exactly what you are signing.

A seller may be asked to sign an affidavit confirming facts about the property. A buyer may be asked to sign one in a land contract or private financing arrangement. A lender or investor may prepare one to document a claimed interest.

Before signing, confirm:

• The legal description is correct
• The names are spelled correctly
• The facts are accurate
• The document does not make broader promises than you intended
• You understand whether it will be recorded
• You understand whether it affects your ability to sell, refinance, or transfer the property

A document that seems routine can create confusion later if it is inaccurate or poorly drafted.

How Make Detroit Home can help

Real estate documents do not have to leave you guessing. At Make Detroit Home, we help Detroit buyers understand the property, the process, and the questions they need to ask.

We can help you:

• Evaluate a property before making an offer
• Connect with a qualified real estate attorney
• Coordinate with your title company and lender
• Understand how financing choices may affect the transaction
• Think through taxes, inspections, repairs, and long-term value
• Build a realistic purchase plan

You can start by exploring our home-buying resources, reviewing down payment assistance options, or using our mortgage calculator to understand the broader cost of buying.

The bottom line

An Affidavit of Interest in Real Estate is a sworn statement about a claimed interest in a property. When recorded, it can put buyers, lenders, title companies, and other third parties on notice.

It generally does not transfer title or replace the underlying deed, mortgage, land contract, or other legal agreement.

If you encounter one in a Detroit transaction, do not sign it, rely on it, or try to resolve it alone. Ask a qualified Michigan real estate attorney to review the document and explain your options.

The right guidance early can help you avoid a much bigger title problem later.

This article is for general educational purposes and is not legal advice. Real estate laws and document requirements depend on the facts of each transaction. Consult a qualified Michigan real estate attorney before signing or relying on an Affidavit of Interest in Real Estate.