Buying a new home or property in Michigan is very difficult. However, a Michigan real estate lawyer may help you simplify the process thanks to their experience and knowledge of Michigan real estate laws.
It is imperative to read and check the purchase agreement before signing it because the agreement includes many different elements. One of the most important parts is the Disclosure by the Home or Property Seller.
What are the home or property seller’s disclosure obligations?
Before selling a home or property in Michigan, a seller should disclose the defects of the home or property to the potential buyer. The seller must adhere to the Michigan Seller Disclosure Act 92 of 1993. The seller should, therefore, provide a written disclosure statement to the buyer according to the Mich. Comp. Laws Ann section 565.951.
The home or property seller should then fill in a standard form for home or property disclosure. Under Michigan real estate laws, this is called the “Seller Disclosure Statement.”
The seller must use this form to disclose the conditions of the property or the home. The disclosure must include the following details:
- If there are any problems with the house’s systems including plumbing, electric, heating, etc.
- Foundation or structure or basement condition, including if there are any leaks
- Any roofing problems or details of any recent repairs
- If the property or land has any flooded zones or if the drainage system has any issues
- Any issues with the boundaries of the property
- If there are any problems with drinking water
- Whether there are any problems with the sewerage system such as a septic tank problem
- If the home has been changed or remodeled
- Whether the home seller had any problems with homeowner associations
- If there are any environmental hazards like radon gas or asbestos in the home
The seller should only disclose the defects they are aware of according to the Mich. Comp. Laws Ann section 565.956. The seller does not need to inspect before giving the disclosure form to the buyer.
What can the buyer do if the seller does not abide by Michigan real estate laws?
If the seller violates Michigan’s disclosure law, by, for example, failing to provide a complete written disclosure or intentionally misrepresenting information, the buyer may cancel the purchase agreement immediately according to Michigan real estate laws. If the purchase agreement is already completed, then the buyer may take legal action by filing a lawsuit for fraud against the seller. The buyer may also sue the seller for fraud or misrepresentations without relying on the Michigan Disclosure Law. The buyer may file a lawsuit if a real estate agent acts in bad faith.
If you have any queries about Michigan Real Estate Laws, please do contact our experienced real estate lawyer.