Marcus is purchasing a lakefront property on Lake Michigan. His agent informs him that a portion of the shoreline near the property is subject to regulation under the Michigan Natural Resources and Environmental Protection Act (NREPA). The seller did not disclose any environmental restrictions on the Seller's Disclosure Statement. Marcus later discovers that construction within 100 feet of the ordinary high-water mark requires a permit from EGLE. Which statement best describes the agent's disclosure obligation in this situation?
Correct Answer
B) The agent must disclose known material facts affecting the property's value or use, including environmental restrictions near water bodies, as part of the duty to the buyer.
Under Michigan law and the Michigan Occupational Code (MCL 339.2512), a licensed real estate agent has a duty to disclose known material facts that affect the value or desirability of the property. Environmental restrictions under NREPA, Act 451 of 1994, including EGLE permit requirements for construction near the ordinary high-water mark of the Great Lakes, are material facts that must be disclosed to the buyer. This obligation exists independently of the seller's disclosure duties.
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