Marcus is a licensed salesperson working with a seller client in Lansing. The seller asks Marcus whether he is required to disclose a known leaky basement to potential buyers. Under the Michigan Seller Disclosure Act, which of the following best describes the seller's obligation?
Correct Answer
B) The seller must disclose all known material defects, including the leaky basement, on the Seller's Disclosure Statement
Under the Michigan Seller Disclosure Act (MCL 565.957), sellers are required to disclose all known material defects affecting the property on the Seller's Disclosure Statement. A leaky basement is a material defect that must be disclosed regardless of whether it has been repaired, because its prior existence and current status are material facts buyers need to make an informed decision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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