HOUSE BILL No. 5014 October 19, 1999, Introduced by Reps. Middaugh, Cassis, Bisbee, Cameron Brown, Ruth Johnson, Jellema, Pestka, Spade, DeRossett, Frank, Jelinek, Mead, Sheltrown, LaSata, Kukuk, Neumann, Rivet, Tabor, Toy, Bishop, DeWeese, Allen, Gosselin, Mortimer, Hager, Richardville, Vander Roest, Kowall, Ehardt, Rocca, Kuipers, Sanborn, Hale, Van Woerkom, Faunce, Jansen, Stamas, Kilpatrick, Birkholz and Raczkowski and referred to the Committee on Regulatory Reform. A bill to amend 1993 PA 92, entitled "Seller disclosure act," by amending section 7 (MCL 565.957), as amended by 1996 PA 92. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7. (1) The disclosures required by this act shall be 2 made on the following form: 3 SELLER'S DISCLOSURE STATEMENT 4 Property Address:________________________________________________ 5 Street 6 ___________________________________ Michigan 7 City, Village, or Township 8 Purpose of Statement: This statement is a disclosure of the con- 9 dition of the property in compliance with the seller disclosure 10 act. This statement is a disclosure of the condition and 03535'99 * DRM 2 1 information concerning the property, known by the seller. Unless 2 otherwise advised, the seller does not possess any expertise in 3 construction, architecture, engineering, or any other specific 4 area related to the construction or condition of the improvements 5 on the property or the land. Also, unless otherwise advised, the 6 seller has not conducted any inspection of generally inaccessible 7 areas such as the foundation or roof. This statement is not a 8 warranty of any kind by the seller or by any agent representing 9 the seller in this transaction, and is not a substitute for any 10 inspections or warranties the buyer may wish to obtain. 11 Seller's Disclosure: The seller discloses the following informa- 12 tion with the knowledge that even though this is not a warranty, 13 the seller specifically makes the following representations based 14 on the seller's knowledge at the signing of this document. Upon 15 receiving this statement from the seller, the seller's agent is 16 required to provide a copy to the buyer or the agent of the 17 buyer. The seller authorizes its agent(s) to provide a copy of 18 this statement to any prospective buyer in connection with any 19 actual or anticipated sale of property. The following are repre- 20 sentations made solely by the seller and are not the representa- 21 tions of the seller's agent(s), if any. This information is a 22 disclosure only and is not intended to be a part of any contract 23 between buyer and seller. 24 Instructions to the Seller: (1) Answer ALL questions. (2) Report 25 known conditions affecting the property. (3) Attach additional 26 pages with your signature if additional space is required. (4) 27 Complete this form yourself. (5) If some items do not apply to 03535'99 * 3 1 your property, checkN/A (nonapplicable)NOT AVAILABLE. If you 2 do not know the facts, check UNKNOWN. FAILURE TO PROVIDE A 3 PURCHASER WITH A SIGNED DISCLOSURE STATEMENT WILL ENABLE A 4 PURCHASER TO TERMINATE AN OTHERWISE BINDING PURCHASE AGREEMENT. 5 Appliances/Systems/Services: The items below are in working order 6 (THE ITEMS BELOW ARE INCLUDED IN THE SALE OF THE PROPERTY ONLY IF 7 THE PURCHASE AGREEMENT SO PROVIDES): 8 Yes No UnknownN/A9 NOT 10 AVAIL- 11 ABLE 12 Range/Oven ____ ____ ____ ____ 13 Dishwasher ____ ____ ____ ____ 14 Refrigerator ____ ____ ____ ____ 15 Hood/fan ____ ____ ____ ____ 16 Disposal ____ ____ ____ ____ 17 TV antenna, TV rotor & controls ____ ____ ____ ____ 18 Electrical system ____ ____ ____ ____ 19 Garage door opener & remote control ____ ____ ____ ____ 20 Alarm system ____ ____ ____ ____ 21 Intercom ____ ____ ____ ____ 22 Central vacuum ____ ____ ____ ____ 23 Attic fan ____ ____ ____ ____ 24 Pool heater, wall liner & equipment ____ ____ ____ ____ 25 Microwave ____ ____ ____ ____ 26 Trash compactor ____ ____ ____ ____ 03535'99 * 4 1 Ceiling fan ____ ____ ____ ____ 2 Sauna/hot tub ____ ____ ____ ____ 3 WASHER/DRYER ____ ____ ____ ____ 4 Lawn sprinkler system ____ ____ ____ ____ 5 Water heater ____ ____ ____ ____ 6 Plumbing system ____ ____ ____ ____ 7 Water softener/conditioner ____ ____ ____ ____ 8 Well & pump ____ ____ ____ ____ 9 Septic tank & drain field ____ ____ ____ ____ 10 Sump pump ____ ____ ____ ____ 11 City Water System ____ ____ ____ ____ 12 City Sewer System ____ ____ ____ ____ 13 Central air conditioning ____ ____ ____ ____ 14 Central heating system ____ ____ ____ ____ 15 Furnace ____ ____ ____ ____ 16 Humidifier ____ ____ ____ ____ 17 Electronic air filter ____ ____ ____ ____ 18 Solar heating system ____ ____ ____ ____ 19 Fireplace & chimney ____ ____ ____ ____ 20 Wood burning system ____ ____ ____ ____ 21 Explanations (attach additional sheets if necessary): 22 _________________________________________________________________ 23 _________________________________________________________________ 24 _________________________________________________________________ 25 _________________________________________________________________ 26 ________________________________________________________________ 03535'99 * 5 1 UNLESS OTHERWISE AGREED, ALL HOUSEHOLD APPLIANCES ARE SOLD IN 2 WORKING ORDER EXCEPT AS NOTED, WITHOUT WARRANTY BEYOND DATE OF 3 CLOSING. 4 Property conditions, improvements & additional information: 5 1.BasementBASEMENT/CRAWL SPACE: Has there been evidence of 6 water? yes __ no __ 7 If yes, please explain: _____________________________________ 8 2. Insulation: Describe, if known_______________________________ 9 Urea Formaldehyde Foam Insulation (UFFI) is installed? 10 unknown __ yes __ no __ 11 3. Roof: Leaks? yes _ no __ 12 Approximate age if known_____________________________________ 13 4. Well: Type of well (depth/diameter, age, and repair history, 14 if known): __________________________________________________ 15 Has the water been tested? yes __ no __ 16 If yes, date of last report/results:_________________________ 17 5. Septic tanks/drain fields: Condition, if known:______________ 18 _____________________________________________________________ 03535'99 * 6 1 6. Heating System: Type/approximate age:________________________ 2 7. Plumbing system: Type: copper__ galvanized__ other__ 3 Any known problems?__________________________________________ 4 8. Electrical system: Any known problems?_______________________ 5 _____________________________________________________________ 6 9. History of infestation, if any: (termites, carpenter ants, 7 etc.)________________________________________________________ 8 10. Environmental Problems:SubstancesARE YOU AWARE OF ANY 9 SUBSTANCES, materials, or products that may be an environmen- 10 tal hazard such as, but not limited to, asbestos, radon gas, 11 formaldehyde, lead-based paint, fuel, or chemical storage 12 tanks and contaminated soil on the property. 13 unknown __ yes __ no __ 14 If yes, please explain:______________________________________ 15 _____________________________________________________________ 16 11. FLOOD INSURANCE: DO YOU HAVE FLOOD INSURANCE ON THE 17 PROPERTY? UNKNOWN __ YES __ NO __ 03535'99 * 7 1 12. MINERAL RIGHTS: DO YOU OWN THE MINERAL RIGHTS? 2 UNKNOWN __ YES __ NO __ 3 Other Items: Are you aware of any of the following: 4 1. Features of the property shared in common with the adjoining 5 landowners, such as walls, fences, roads, and driveways, or other 6 features whose use or responsibility for maintenance may have an 7 effect on the property? 8 unknown __ yes __ no __ 9 2. Any encroachments, easements, zoning violations, or noncon- 10 forming uses? 11 unknown __ yes __ no __ 12 3. Any "common areas" (facilities like pools, tennis courts, 13 walkways, or other areas co-owned with others), or a homeowners' 14 association that has any authority over the property? 15 unknown __ yes __ no __ 16 4. Structural modifications, alterations, or repairs made with- 17 out necessary permits or licensed contractors? 18 unknown __ yes __ no __ 19 5. Settling, flooding, drainage, structural, or grading 20 problems? 21 unknown __ yes __ no __ 22 6. Major damage to the property from fire, wind, floods, or 23 landslides? 24 unknown __ yes __ no __ 25 7. Any underground storage tanks? 26 unknown __ yes __ no __ 03535'99 * 8 1 8. Farm or farm operation in the vicinity; or proximity to a 2 landfill, airport, shooting range, etc.? 3 unknown __ yes __ no __ 4 9. ANY OUTSTANDING UTILITY ASSESSMENTS? 5 UNKNOWN __ YES __ NO __ 6 10. ANY OUTSTANDING MUNICIPAL ASSESSMENTS OR FEES? 7 UNKNOWN __ YES __ NO __ 8 11. ANY PENDING LITIGATION THAT COULD AFFECT THE PROPERTY OR THE 9 SELLER'S RIGHT TO CONVEY THE PROPERTY? 10 UNKNOWN __ YES __ NO __ 11 If the answer to any of these questions is yes, please explain. 12 Attach additional sheets, if necessary:__________________________ 13 _________________________________________________________________ 14 _________________________________________________________________ 15 _________________________________________________________________ 16 _________________________________________________________________ 17The most recent state equalized valuation of the property pro-18vided by the local taxing unit to the seller was $_____ as of19_____ (date).The seller has lived in the residence on the prop- 20 erty from ____________ (date) to ____________ (date). The seller 21 has owned the property since ____________ (date).and makes rep-22resentation only since that date.The seller has indicated above 23 thehistory andcondition of all the items based onthat24 information known to the seller. If any changes occur in the 25 structural/mechanical/appliance systems of this property from the 26 date of this form to the date of closing, seller will immediately 27 disclose the changes to buyer. In no event shall the parties 03535'99 * 9 1 hold the broker liable for any representations not directly made 2 by the broker or broker's agent. 3 Seller certifies that the information in this statement is true 4 and correct to the best of seller's knowledge as of the date of 5 seller's signature. 6 BUYER SHOULD OBTAIN PROFESSIONAL 7 ADVICE AND INSPECTIONS OF THE 8 PROPERTY TO MORE FULLY DETERMINE THE 9 CONDITION OF THE PROPERTY. 10 11 BUYER IS ADVISED THAT THE STATE 12 EQUALIZED VALUE OF THE PROPERTY AND 13 OTHER REAL PROPERTY TAX INFORMATION 14 IS AVAILABLE FROM THE APPROPRIATE 15 LOCAL ASSESSOR'S OFFICE. BUYER 16 SHOULD NOT ASSUME THAT BUYER'S 17 FUTURE TAX BILLS ON THE PROPERTY 18 WILL BE THE SAME AS THE SELLER'S 19 PRESENT TAX BILLS. UNDER MICHIGAN 20 LAW, REAL PROPERTY TAX OBLIGATIONS 21 CAN CHANGE SIGNIFICANTLY WHEN 22 PROPERTY IS TRANSFERRED. 23 Seller___________________________Date __________________________ 24 Seller___________________________Date __________________________ 25 Buyer has read and acknowledges receipt of this statement. 26 Buyer__________________Date ___________________Time: ____________ 03535'99 * 10 1 Buyer__________________Date ___________________Time: ____________ 2 (2) A form described in subsection (1) printed before the 3 effective date of the 1999 amendatory act thataddedAMENDED 4 this subsection thatisWAS in compliance withAct No. 106 of5the Public Acts of 1995 and that differs from this section6regarding notice of a farm or farm operation in the vicinity7 THIS SECTION AT THAT TIME may be utilized and shall be considered 8 in compliance with this section untilJuly 1, 1996180 DAYS 9 AFTER THE EFFECTIVE DATE OF THE 1999 AMENDATORY ACT THAT AMENDED 10 THIS SUBSECTION. 03535'99 * Final page. 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