This page is meant to inform readers about
new aspects and developments affecting homeownership in Michigan. Concerning matters
include: home inspections, home inspectors, real estate transactions, home maintenance,
home environmental issues, home improvement, and so on. The latest news is presented on
this page while other articles are linked from this page.
Real Estate News for Michigan Homeowners and Home Inspectors
Links to previous articles:
New Michigan Law Amending Seller's Disclosure
The seller's disclosure form, in the State of Michigan, has been amended as of January 1st,
2006 with the following paragraph that has to be typed in capital letters:
"BUYER SHOULD OBTAIN PROFESSIONAL ADVICE AND INSPECTIONS
OF THE PROPERTY TO MORE FULLY DETERMINE THE CONDITION OF THE PROPERTY. THESE INSPECTIONS
SHOULD TAKE INDOOR AIR AND WATER QUALITY INTO ACCOUNT, AS WELL AS ANY EVIDENCE OF
UNUSUALLY HIGH LEVELS OF POTENTIAL ALLERGENS INCLUDING BUT NOT LIMITED TO,
HOUSEHOLD MOLD, MILDEW AND BACTERIA"
The paragraph is inserted on the last page of seller's disclosure form
and it is the first of the three paragraphs printed in capital letters.
It is very important that every home buyer is informed of all rights and
responsibilities including risk and consequences that may arise during or
after real estate transactions.
The law was probably prompted by the large number of problems and litigations
aroused from houses being sold without proper disclosure or with concealed defects.
Homeowners, most of the time, do not know the condition of their house,
hence the seller's disclosure offers limited help. Real estate agents are not
trained to evaluate the condition of houses. As a result, many houses were sold
with serious defects or hazards.
What happened prior to this law: The buyer moved into the house, discovered
undisclosed problems or suffered health trauma related to moving into the house,
and started legal proceedings for compensation or property restitution.
As a result; the real estate broker and the seller were forced to compensate for damages.
Compensations were given even for health only related claims in spite of the fact that
neither broker nor seller knew the buyer's health condition or how they may react
to different factors of the environment.
Home sellers and their agents do have to disclose any known defects or hazards,
however, most problems with a house, especially environmental, are beyond common knowledge.
Hence, somebody with professional knowledge and responsibility should be involved
to ensure that proper information is conveyed to the home buyer.
As of January 1st, 2006 professional inspectors have more
responsibility
to provide complete information for the home buyer. The home inspectors and/or
environmental inspectors therefore, assume part of the liability in the transaction.
If a home buyer does not use a home inspector it is considered they are assuming
responsibility for any defects or environmental hazards not known by sellers or agents.
In other words; they will own whatever they bought.
The buyer supports cost of inspections and testing, it is in the homebuyers interest
to determine if the house is suitable for their needs or not. The seller pays the real estate
commission, title insurance, taxes, and in many cases the home warranty.
After examining a house the home inspector will report to his client the condition
of the house including all problems found or suspected and will make recommendations
for further specialty investigations, if needed, to more fully determine
the actual condition of the house. The home buyer, now better informed,
can decide whether to proceed with the transaction or not.
Assuming the home inspector has not found any defects or hazards, the transaction
will go through as started. If the home inspector finds defects that require
further assessments and/or laboratory testing the buyer does have options:
- Decline any testing or further evaluations and simply withdraw from the transaction.
- Proceed with the inspectors recommendations, find the approximate cost of corrections
then; re-negotiate the price of the house, or assume responsibility for corrections,
or ask the seller to correct the problems.
- Decline any testing or further investigations and proceed with the purchase
of the house. By doing so the home buyers are assuming
full responsibility for anything that may happen as a consequence of the
present defects or hazards existing in the house.
NOTE: All statements written herein regarding this law represent my personal
field observations and believes. The readers are advised to use their own judgment
when interpreting this law, or consult a legal adviser.
To obtain a copy of the Sellers Disclosure Statement
click on this link.
