The seller disclosure document outlines every important detail about a property’s condition. If a home is sold as-is, the seller has to disclose information about the utilities, appliances, electrical systems, structural foundations and other features in the house. Michigan real estate law is written to protect the interests of both buyers and sellers.
Disclosure requirements for sellers
Property sellers have to disclose certain information to buyers, as outlined in the Seller Disclosure Statement. The types of information to disclose include property damages, repairs or renovations in addition to the conditions of various electrical systems and appliances. Every problem with the property must be disclosed, whether it is a malfunctioning appliance or noncompliance with local zoning laws.
However, some properties are exempt from the seller disclosure requirements. Homes that are inherited, foreclosed or transferred through court orders are exempt. A home that is brand new and has never been used is often exempt.
Failure to disclose
Failing to disclose certain information about your property is punishable by law, according to the Seller Disclosure Act. The buyer has a right to cancel the sale and receive a full or partial refund. The buyer is entitled to file a claim for fraud and misrepresentation within six months of the closing date, according to real estate law.
Review the property laws in your state
Every state has laws on how sellers should sell properties in order to protect buyers. In the end, it’s more affordable to be upfront and honest about problems with your property. Otherwise, pay for the repairs or renovations yourself and sell the property at a fair price.