Honesty is the best policy. The Act requires that Disclosures be made in “good-faith” which means that they must be honest in fact. If you do not know the answer you may simply state “unknown.”
The Michigan Seller's Disclosure Act is a Michigan law that applies to transactions involving residential real estate. The Act requires that sellers of residential real estate make certain disclosures about the property to the prospective purchaser.
A real estate agent or broker is not liable under the Act UNLESS the agent knowingly acts in concert with the seller to violate the Act.
The Act has a proscribed form that is to be used to comply with the Act. The form has been amended and the old form may not be used after April 2006. The new form is attached in fillable PDF format.
You are not liable for incorrect or inaccurate Disclosure statements if you had no knowledge of the inaccuracy, the information you provided was based on information provided to you by government agencies or home inspection professionals, and you were careful in communicating the information you received from any third parties. If you find out that the data in the Disclosure is inaccurate you must notify the Purchaser in writing of the inaccuracy as soon as you discover it.
What happens if the Disclosure Statement is not provided by the Seller before the purchase agreement is signed?
The purchaser may terminate the purchase agreement within 72 hours of receiving the Disclosure if delivered in person or within 120 hours if the Disclosure is delivered by registered mail.
Yes. The Act requires the purchase agreement or sales contract indicate that the Act has been complied with.
In sales transactions, the Disclosure must be given prior to execution of a binding purchase agreement. In installment sales contracts where no binding purchase agreement has been executed, must be given before purchaser executes binding sales contract.
The Disclosure may be delivered in person, by registered mail, or by facsimile.
The Disclosure must be made by the seller or transferor of the property.