A seller in Dearborn completes the Seller's Disclosure Statement and delivers it to the buyer after the purchase agreement is signed. Two weeks later, before closing, the seller discovers a significant crack in the foundation that was not visible at the time of the original disclosure. Under the Michigan Seller Disclosure Act, what is the seller's obligation regarding this newly discovered defect?
Correct Answer
A) The seller must provide an amended Seller's Disclosure Statement disclosing the newly discovered defect, and the buyer receives a new 72-hour right of rescission
Under MCL 565.957, if the seller discovers a material defect after delivering the Seller's Disclosure Statement but before closing, the seller has a duty to provide an amended disclosure statement. Upon receiving the amended disclosure, the buyer is entitled to a new 72-hour right of rescission. This ensures that buyers always have the opportunity to reconsider the transaction based on the most current information about the property's condition.
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