Act No. 13

Public Acts of 2000

Approved by the Governor

March 7, 2000

Filed with the Secretary of State

March 8, 2000

EFFECTIVE DATE: March 8, 2000

STATE OF MICHIGAN

90TH LEGISLATURE

REGULAR SESSION OF 2000

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

Reps. Basham, Bovin, Brewer, Callahan, Daniels, DeHart, Dennis, DeVuyst, Gilbert, Hansen, Howell, Jacobs, Jamnick, Rick Johnson, Julian, Kelly, Koetje, Lemmons, Mans, O'Neil, Pappageorge, Patterson,Price, Prusi, Pumford, Richner, Schauer, Shackleton, Shulman, Vear, Wojno and Woodward named co-sponsors

ENROLLED HOUSE BILL No. 5014

AN ACT to amend 1993 PA 92, entitled "An act to require certain disclosures in connection with transfers of residential property," by amending section 7 (MCL 565.957), as amended by 1996 PA 92.

The People of the State of Michigan enact:

Sec. 7. (1) The disclosures required by this act shall be made on the following form:

SELLER'S DISCLOSURE STATEMENT

Property Address: ______________________________________________________________________________________

Street

Michigan

City, Village, or Township

Purpose of Statement: This statement is a disclosure of the condition of the property in compliance with the seller disclosure act. This statement is a disclosure of the condition and information concerning the property, known by the seller. Unless otherwise advised, the seller does not possess any expertise in construction, architecture, engineering, or any other specific area related to the construction or condition of the improvements on the property or the land. Also, unless otherwise advised, the seller has not conducted any inspection of generally inaccessible areas such as the foundation or roof. This statement is not a warranty of any kind by the seller or by any agent representing the seller in this transaction, and is not a substitute for any inspections or warranties the buyer may wish to obtain.

Seller's Disclosure: The seller discloses the following information with the knowledge that even though this is not a warranty, the seller specifically makes the following representations based on the seller's knowledge at the signing of this document. Upon receiving this statement from the seller, the seller's agent is required to provide a copy to the buyer or the agent of the buyer. The seller authorizes its agent(s) to provide a copy of this statement to any prospective buyer in connection with any actual or anticipated sale of property. The following are representations made solely by the seller and are not the representations of the seller's agent(s), if any. This information is a disclosure only and is not intended to be a part of any contract between buyer and seller.

Instructions to the Seller: (1) Answer ALL questions. (2) Report known conditions affecting the property. (3) Attach additional pages with your signature if additional space is required. (4) Complete this form yourself. (5) If some items do not apply to your property, check NOT AVAILABLE. If you do not know the facts, check UNKNOWN. FAILURE TO PROVIDE A PURCHASER WITH A SIGNED DISCLOSURE STATEMENT WILL ENABLE A PURCHASER TO TERMINATE AN OTHERWISE BINDING PURCHASE AGREEMENT.

Appliances/Systems/Services: The items below are in working order (the items below are included in the sale of the property only if the purchase agreement so provides):

Yes No Unknown Not

Available

Range/Oven

Dishwasher

Refrigerator

Hood/fan

Disposal

TV antenna, TV rotor & controls

Electrical system

Garage door opener & remote control

Alarm system

Intercom

Central vacuum

Attic fan

Pool heater, wall liner & equipment

Microwave

Trash compactor

Ceiling fan

Sauna/hot tub

Washer

Dryer

Lawn sprinkler system

Water heater

Plumbing system

Water softener/conditioner

Well & pump

Septic tank & drain field

Sump pump

City Water System

City Sewer System

Central air conditioning

Central heating system

Wall furnace

Humidifier

Electronic air filter

Solar heating system

Fireplace & chimney

Wood burning system

Explanations (attach additional sheets if necessary):

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

UNLESS OTHERWISE AGREED, ALL HOUSEHOLD APPLIANCES ARE SOLD IN WORKING ORDER EXCEPT AS NOTED, WITHOUT WARRANTY BEYOND DATE OF CLOSING.

Property conditions, improvements & additional information:

1. Basement/crawl space:Has there been evidence of water? yes ___ no ___

If yes, please explain: __________________________________________________________________________________

2. Insulation: Describe, if known _________________________________________________________________________

Urea Formaldehyde Foam Insulation (UFFI) is installed? unknown ___ yes ___ no ___

3. Roof: Leaks? yes ___ no ___

Approximate age if known ______________________________________________________________________________

4. Well: Type of well (depth/diameter, age, and repair history, if known):____________________________________

Has the water been tested? yes ___ no ___

If yes, date of last report/results: ________________________________________________________________________

5. Septic tanks/drain fields: Condition, if known: _________________________________________________________

______________________________________________________________________________________________________

6. Heating System: Type/approximate age: ________________________________________________________________

7. Plumbing system: Type: copper ____ galvanized ____ other ____

Any known problems?

8. Electrical system: Any known problems? _______________________________________________________________

______________________________________________________________________________________________________

9. History of infestation, if any: (termites, carpenter ants, etc.) ____________________________________________

10. Environmental Problems: Are you aware of any substances, materials, or products that may be an environmental hazard such as, but not limited to, asbestos, radon gas, formaldehyde, lead-based paint, fuel, or chemical storage tanks and contaminated soil on the property. unknown ___ yes ___ no ___

If yes, please explain:

______________________________________________________________________________________________________

11. Flood insurance: Do you have flood insurance on the property? unknown ___ yes ___ no ___

12. Mineral rights: Do you own the mineral rights? unknown ___ yes ___ no ___

Other Items: Are you aware of any of the following:

1.Features of the property shared in common with the adjoining landowners, such as walls, fences, roads, and driveways, or other features whose use or responsibility for maintenance may have an effect on the property?

unknown ___ yes ___ no ___

2.Any encroachments, easements, zoning violations, or nonconforming uses? unknown ___ yes ___ no ___

3.Any "common areas" (facilities like pools, tennis courts, walkways, or other areas co-owned with others), or a homeowners' association that has any authority over the property? unknown ___ yes ___ no ___

4.Structural modifications, alterations, or repairs made without necessary permits or licensed contractors?

unknown ___ yes ___ no ___

5.Settling, flooding, drainage, structural, or grading problems? unknown ___ yes ___ no ___

6.Major damage to the property from fire, wind, floods, or landslides? unknown ___ yes ___ no ___

7.Any underground storage tanks? unknown ___ yes ___ no ___

8.Farm or farm operation in the vicinity; or proximity to a landfill, airport, shooting range, etc.?

unknown ___ yes ___ no ___

9.Any outstanding utility assessments or fees, including any natural gas main extension surcharge?

unknown ___ yes ___ no ___

10.Any outstanding municipal assessments or fees? unknown ___ yes ___ no ___

11.Any pending litigation that could affect the property or the seller's right to convey the property?

unknown ___ yes ___ no ___

If the answer to any of these questions is yes, please explain. Attach additional sheets, if necessary: _________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

__________________________________________________________________________________________________________

The seller has lived in the residence on the property from ____________ (date) to ____________ (date). The seller has owned the property since __________________ (date). The seller has indicated above the condition of all the items based on information known to the seller. If any changes occur in the structural/mechanical/appliance systems of this property from the date of this form to the date of closing, seller will immediately disclose the changes to buyer. In no event shall the parties hold the broker liable for any representations not directly made by the broker or broker's agent.

Seller certifies that the information in this statement is true and correct to the best of seller's knowledge as of the date of seller's signature.

BUYER SHOULD OBTAIN PROFESSIONAL

ADVICE AND INSPECTIONS OF THE

PROPERTY TO MORE FULLY DETERMINE THE

CONDITION OF THE PROPERTY.

BUYERS ARE ADVISED THAT CERTAIN

INFORMATION COMPILED PURSUANT TO THE

SEX OFFENDERS REGISTRATION ACT, 1994

PA 295, MCL 28.721 TO 28.732, IS

AVAILABLE TO THE PUBLIC. BUYERS

SEEKING THAT INFORMATION SHOULD

CONTACT THE APPROPRIATE LOCAL LAW

ENFORCEMENT AGENCY OR SHERIFF'S

DEPARTMENT DIRECTLY.

BUYER IS ADVISED THAT THE STATE

EQUALIZED VALUE OF THE PROPERTY,

HOMESTEAD EXEMPTION INFORMATION, AND

OTHER REAL PROPERTY TAX INFORMATION

IS AVAILABLE FROM THE APPROPRIATE

LOCAL ASSESSOR'S OFFICE. BUYER

SHOULD NOT ASSUME THAT BUYER'S

FUTURE TAX BILLS ON THE PROPERTY

WILL BE THE SAME AS THE SELLER'S

PRESENT TAX BILLS. UNDER MICHIGAN

LAW, REAL PROPERTY TAX OBLIGATIONS

CAN CHANGE SIGNIFICANTLY WHEN

PROPERTY IS TRANSFERRED.

Seller Date ___________________

Seller Date ___________________

Buyer has read and acknowledges receipt of this statement.

Buyer __________________________________________ Date _________________________ Time: ____________________

Buyer __________________________________________ Date _________________________ Time: ____________________

(2) A form described in subsection (1) printed before the effective date of the 2000 amendatory act that amended this subsection that was in compliance with this section at that time may be utilized and shall be considered in compliance with this section until 90 days after the effective date of the 2000 amendatory act that amended this subsection.

This act is ordered to take immediate effect.

Clerk of the House of Representatives.

Secretary of the Senate.

Approved

Governor.