A Michigan residential purchase agreement is a legally binding document that details the terms of a home sale, including price, closing date, and contingencies, between a buyer and seller.
It becomes official once both parties sign, facilitating the transfer of property ownership upon agreement on conditions and financing terms.
State Laws
- Dual Agency: Michigan allows dual agency with specific disclosures and consent. Dual agency occurs when one real estate agent represents both the buyer and the seller in a transaction. Both parties must be made aware of and consent to this arrangement, acknowledging the potential for a conflict of interest [1] .
- Anti-Discrimination Laws: In addition to federal Fair Housing Laws, Michigan has its own Elliott-Larsen Civil Rights Act, which prohibits discrimination in real estate transactions based on religion, race, color, national origin, age, sex, familial status, or marital status [2] .
Required Seller Disclosures
Lead-Based Paint Disclosure
Federal law (42 U.S. Code § 4852d) requires sellers to disclose any known lead hazards for homes built before 1978.
Property Disclosure Statement
In accordance with the Seller Disclosure Act (§ 565.975), this document is used to disclose the condition of a property and its components to prospective buyers.
Do Sellers in Michigan Have to Disclose Property Defects?
Yes, sellers in Michigan are required to disclose property defects. This means that during a real estate transaction, the seller must inform the buyer of any known issues with the property. This disclosure helps ensure that buyers are fully aware of the condition of the property they are considering purchasing.
