The Michigan residential real estate purchase agreement (“residential purchase and sale agreement”) allows a buyer and seller to enter into a legally binding contract for real property. The main terms of the agreement will consist of a purchase price, down payment, and financing terms.
Required Seller Disclosures in Michigan
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In Michigan, sellers are required to complete a real estate purchase agreement and the following disclosure statement in order for it to be considered legally binding:
Seller’s Property Disclosure Statement. Michigan sellers must provide a full accounting of the property’s current condition to the buyer. Additionally, the buyer should have the property professionally inspected. (§ 565.957)