HOUSE BILL No. 6277 September 17, 2002, Introduced by Reps. Woronchak, Cassis, Newell, Toy, Birkholz, Palmer, Ruth Johnson, Voorhees, Vander Veen, Richardville, Ehardt, Cameron Brown, Meyer, Van Woerkom, Rocca, Caul, Pappageorge, DeRossett and Kooiman and referred to the Committee on Tax Policy. A bill to amend 1993 PA 92, entitled "Seller disclosure act," by amending section 7 (MCL 565.957), as amended by 2000 PA 13. 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 07067'02 f FDD 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 07067'02 f 3 1 your property, check NOT AVAILABLE. If you do not know the 2 facts, check UNKNOWN. FAILURE TO PROVIDE A PURCHASER WITH A 3 SIGNED DISCLOSURE STATEMENT WILL ENABLE A PURCHASER TO TERMINATE 4 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 Unknown Not 9 Avail- 10 able 11 Range/Oven ____ ____ ____ ____ 12 Dishwasher ____ ____ ____ ____ 13 Refrigerator ____ ____ ____ ____ 14 Hood/fan ____ ____ ____ ____ 15 Disposal ____ ____ ____ ____ 16 TV antenna, TV rotor & controls ____ ____ ____ ____ 17 Electrical system ____ ____ ____ ____ 07067'02 f 4 1 Garage door opener & remote control ____ ____ ____ ____ 2 Alarm system ____ ____ ____ ____ 3 Intercom ____ ____ ____ ____ 4 Central vacuum ____ ____ ____ ____ 5 Attic fan ____ ____ ____ ____ 6 Pool heater, wall liner & equipment ____ ____ ____ ____ 7 Microwave ____ ____ ____ ____ 8 Trash compactor ____ ____ ____ ____ 9 Ceiling fan ____ ____ ____ ____ 10 Sauna/hot tub ____ ____ ____ ____ 11 Washer ____ ____ ____ ____ 12 Dryer ____ ____ ____ ____ 13 Lawn sprinkler system ____ ____ ____ ____ 07067'02 f 5 1 Water heater ____ ____ ____ ____ 2 Plumbing system ____ ____ ____ ____ 3 Water softener/conditioner ____ ____ ____ ____ 4 Well & pump ____ ____ ____ ____ 5 Septic tank & drain field ____ ____ ____ ____ 6 Sump pump ____ ____ ____ ____ 7 City Water System ____ ____ ____ ____ 8 City Sewer System ____ ____ ____ ____ 9 Central air conditioning ____ ____ ____ ____ 10 Central heating system ____ ____ ____ ____ 11 Wall furnace ____ ____ ____ ____ 12 Humidifier ____ ____ ____ ____ 13 Electronic air filter ____ ____ ____ ____ 07067'02 f 6 1 Solar heating system ____ ____ ____ ____ 2 Fireplace & chimney ____ ____ ____ ____ 3 Wood burning system ____ ____ ____ ____ 4 Explanations (attach additional sheets if necessary): 5 _________________________________________________________________ 6 _________________________________________________________________ 7 _________________________________________________________________ 8 _________________________________________________________________ 9 _________________________________________________________________ 10 UNLESS OTHERWISE AGREED, ALL HOUSEHOLD APPLIANCES ARE SOLD IN 11 WORKING ORDER EXCEPT AS NOTED, WITHOUT WARRANTY BEYOND DATE OF 12 CLOSING. 13 Property conditions, improvements & additional information: 14 1. Basement/Crawl Space: Has there been evidence of water? 15 yes __ no __ 16 If yes, please explain: _____________________________________ 17 2. Insulation: Describe, if known_______________________________ 18 Urea Formaldehyde Foam Insulation (UFFI) is installed? 19 unknown __ yes __ no __ 20 3. Roof: Leaks? yes _ no __ 21 Approximate age if known_____________________________________ 07067'02 f 7 1 4. Well: Type of well (depth/diameter, age, and repair history, 2 if known): __________________________________________________ 3 Has the water been tested? yes __ no __ 4 If yes, date of last report/results:_________________________ 5 5. Septic tanks/drain fields: Condition, if known:______________ 6 _____________________________________________________________ 7 6. Heating System: Type/approximate age:________________________ 8 7. Plumbing system: Type: copper__ galvanized__ other__ 9 Any known problems?__________________________________________ 10 8. Electrical system: Any known problems?_______________________ 11 _____________________________________________________________ 12 9. History of infestation, if any: (termites, carpenter ants, 13 etc.)________________________________________________________ 14 10. Environmental Problems: Are you aware of any substances, 15 materials, or products that may be an environmental hazard 16 such as, but not limited to, asbestos, radon gas, 07067'02 f 8 1 formaldehyde, lead-based paint, fuel or chemical storage 2 tanks and contaminated soil on the property. 3 unknown __ yes __ no __ 4 If yes, please explain:______________________________________ 5 _____________________________________________________________ 6 11. Flood Insurance: Do you have flood insurance on the 7 property? 8 unknown __ yes __ no __ 9 12. Mineral Rights: Do you own the mineral rights? 10 unknown __ yes __ no __ 11 Other Items: Are you aware of any of the following: 12 1. Features of the property shared in common with the adjoining 13 landowners, such as walls, fences, roads and driveways, or other 14 features whose use or responsibility for maintenance may have an 15 effect on the property? 16 unknown __ yes __ no __ 17 2. Any encroachments, easements, zoning violations, or noncon- 18 forming uses? 19 unknown __ yes __ no __ 20 3. Any "common areas" (facilities like pools, tennis courts, 21 walkways, or other areas co-owned with others), or a homeowners' 22 association that has any authority over the property? 23 unknown __ yes __ no __ 07067'02 f 9 1 4. Structural modifications, alterations, or repairs made 2 without necessary permits or licensed contractors? 3 unknown __ yes __ no __ 4 5. Settling, flooding, drainage, structural, or grading 5 problems? 6 unknown __ yes __ no __ 7 6. Major damage to the property from fire, wind, floods, or 8 landslides? 9 unknown __ yes __ no __ 10 7. Any underground storage tanks? 11 unknown __ yes __ no __ 12 8. Farm or farm operation in the vicinity; or proximity to a 13 landfill, airport, shooting range, etc.? 14 unknown __ yes __ no __ 15 9. Any outstanding utility assessments or fees, including any 16 natural gas main extension surcharge? 17 unknown __ yes __ no __ 18 10. Any outstanding municipal assessments or fees? 19 unknown __ yes __ no __ 20 11. Any pending litigation that could affect the property or the 21 seller's right to convey the property? 22 unknown __ yes __ no __ 23 If the answer to any of these questions is yes, please explain. 24 Attach additional sheets, if necessary:__________________________ 25 _________________________________________________________________ 26 _________________________________________________________________ 07067'02 f 10 1 _________________________________________________________________ 2 _________________________________________________________________ 3 The seller has lived in the residence on the property from 4 ____________ (date) to ____________ (date). The seller has owned 5 the property since ____________ (date). The seller has indicated 6 above the condition of all the items based on information known 7 to the seller. If any changes occur in the 8 structural/mechanical/appliance systems of this property from the 9 date of this form to the date of closing, seller will immediately 10 disclose the changes to buyer. In no event shall the parties 11 hold the broker liable for any representations not directly made 12 by the broker or broker's agent. 13 Seller certifies that the information in this statement is true 14 and correct to the best of seller's knowledge as of the date of 15 seller's signature. 16 BUYER SHOULD OBTAIN PROFESSIONAL 17 ADVICE AND INSPECTIONS OF THE 18 PROPERTY TO MORE FULLY DETERMINE THE 19 CONDITION OF THE PROPERTY. 20 21 BUYERS ARE ADVISED THAT CERTAIN 22 INFORMATION COMPILED PURSUANT TO THE 23 SEX OFFENDERS REGISTRATION ACT, 1994 24 PA 295, MCL 28.721 TO 28.732, IS 25 AVAILABLE TO THE PUBLIC. BUYERS 26 SEEKING THAT INFORMATION SHOULD 27 CONTACT THE APPROPRIATE LOCAL LAW 07067'02 f 11 1 ENFORCEMENT AGENCY OR SHERIFF'S 2 DEPARTMENT DIRECTLY. 3 4 BUYER IS ADVISED THAT THE STATE 5 EQUALIZED VALUE OF THE PROPERTY, 6HOMESTEADPRINCIPAL RESIDENCE 7 EXEMPTION INFORMATION, AND OTHER 8 REAL PROPERTY TAX INFORMATION IS 9 AVAILABLE FROM THE APPROPRIATE LOCAL 10 ASSESSOR'S OFFICE. BUYER SHOULD NOT 11 ASSUME THAT BUYER'S FUTURE TAX BILLS 12 ON THE PROPERTY WILL BE THE SAME AS 13 THE SELLER'S PRESENT TAX BILLS. 14 UNDER MICHIGAN LAW, REAL PROPERTY 15 TAX OBLIGATIONS CAN CHANGE 16 SIGNIFICANTLY WHEN PROPERTY IS 17 TRANSFERRED. 18 Seller___________________________Date __________________________ 19 Seller___________________________Date __________________________ 20 Buyer has read and acknowledges receipt of this statement. 21 Buyer__________________Date ___________________Time: ____________ 22 Buyer__________________Date ___________________Time: ____________ 07067'02 f 12 1 (2) A form described in subsection (1) printed before the 2 effective date of the 2000 amendatory act that amended this 3 subsection that was in compliance with this section at that time 4 may be utilized and shall be considered in compliance with this 5 section until 90 days after the effective date of the 2000 amen- 6 datory act that amended this subsection. 7 Enacting section 1. This amendatory act does not take 8 effect unless Senate Bill No. ____ or House Bill No. 6283 9 (request no. 07067'02) of the 91st Legislature is enacted into 10 law. 07067'02 f Final page. FDD