Under the Michigan Seller Disclosure Act (MCL 565.951–565.965), which of the following properties is NOT exempt from the requirement to provide a Seller's Disclosure Statement?
Correct Answer
A) A standard arm's-length sale of a three-unit residential rental property between unrelated parties
A standard arm's-length sale of a residential property with 1 to 4 units between unrelated parties is NOT exempt from the Michigan Seller Disclosure Act. The Act applies to transfers of residential real property consisting of 1–4 dwelling units, and a three-unit rental property falls squarely within this requirement. The seller must provide a completed Seller's Disclosure Statement in this transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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