Sandra is selling her home in Kalamazoo, Michigan. She has claimed the PRE for the past eight years. Her listing agent, Tom, tells her she does not need to do anything about the PRE at closing because 'the title company handles everything.' Is Tom's advice correct?
Correct Answer
C) No, Sandra must file a PRE rescission form with the local assessor when she moves or sells
Tom's advice is incorrect. Under Michigan law, the seller (Sandra) has an affirmative obligation to file a PRE rescission form with the local assessor when she sells or moves from the property. This is the seller's personal responsibility and cannot simply be delegated to the title company as a matter of course. The listing agent should advise the seller of this obligation, and failure to rescind can result in back taxes, interest, and penalties assessed against the former owner.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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