A seller in Traverse City is transferring her home to her adult daughter as a gift. The daughter is not paying any consideration for the property. The seller asks her listing agent whether she needs to complete a Seller's Disclosure Statement for this transfer. Which of the following is the most accurate response?
Correct Answer
A) No, transfers between family members for no consideration are exempt from the Seller's Disclosure Statement requirement
Under MCL 565.953, the Michigan Seller Disclosure Act provides several exemptions from the disclosure requirement. Transfers between family members, particularly those involving no consideration (gifts), are among the recognized exempt transactions. The statute exempts transfers to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors, which includes transfers to adult children.
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