Elena is listing a four-unit residential building in Flint. Her listing agent, Tom, knows from a previous conversation with Elena that the building's furnace is failing and will likely need replacement within the year, but Elena has not included this on the Seller's Disclosure Statement. Under the Michigan Seller Disclosure Act, which of the following most accurately describes the disclosure obligation?
Correct Answer
D) Elena must disclose the known furnace condition on the Seller's Disclosure Statement, and Tom may also have an independent duty to disclose known material facts
Under the Michigan Seller Disclosure Act (MCL 565.957), the seller is required to disclose all known material defects. Elena must include the failing furnace on the Seller's Disclosure Statement. Additionally, under Michigan Occupational Code (MCL 339.2512d), a licensee has an independent duty to disclose known material facts that affect the value or desirability of the property to all parties. Tom's knowledge of the furnace condition creates a separate disclosure obligation for him as a licensee.
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Related Concepts
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