SB-0370, As Passed House, September 20, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 370

 

 

April 12, 2005, Introduced by Senators BROWN, HARDIMAN, GEORGE and BIRKHOLZ and referred to the Committee on Economic Development, Small Business and Regulatory Reform.

 

 

 

 

 

      A bill to amend 1993 PA 92, entitled

 

"Seller disclosure act,"

 

by amending section 7 (MCL 565.957), as amended by 2003 PA 130.

 

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

 

 9  condition of the property in compliance with the seller

 

10  disclosure act. This statement is a disclosure of the condition


 Senate Bill No. 370 as amended June 22, 2005

 1  and information concerning the property, known by the seller.

 

 2  Unless otherwise advised, the seller does not possess any

 

 3  expertise in construction, architecture, engineering, or any

 

 4  other specific area related to the construction or condition of

 

 5  the improvements on the property or the land. Also, unless

 

 6  otherwise advised, the seller has not conducted any inspection of

 

 7  generally inaccessible areas such as the foundation or roof. This

 

 8  statement is not a warranty of any kind by the seller or by any

 

 9  agent representing the seller in this transaction, and is not a

 

10  substitute for any inspections or warranties the buyer may wish

 

11  to obtain.

 

12  Seller's Disclosure: The seller discloses the following

 

13  information with the knowledge that even though this is not a

 

14  warranty, the seller specifically makes the following

 

15  representations based on the seller's knowledge at the signing of

 

16  this document. Upon receiving this statement from the seller, the

 

17  seller's agent is required to provide a copy to the buyer or the

 

18  agent of the buyer. The seller authorizes its agent(s) to provide

 

19  a copy of this statement to any prospective buyer in connection

 

20  with any actual or anticipated sale of property. The following

 

21  are representations made solely by the seller and are not the

 

22  representations of the seller's agent(s), if any. <<This

 

23  information is a disclosure only and is not intended to be a part

 

24  of any contract between buyer and seller.>>

 

25  Instructions to the Seller: (1) Answer ALL questions. (2)

 

26  Report known conditions affecting the property. (3) Attach

 

27  additional pages with your signature if additional space is


 

 1  required. (4) Complete this form yourself. (5) If some items do

 

 2  not apply to your property, check NOT AVAILABLE. If you do not

 

 3  know the facts, check UNKNOWN. FAILURE TO PROVIDE A PURCHASER

 

 4  WITH A SIGNED DISCLOSURE STATEMENT WILL ENABLE A PURCHASER TO

 

 5  TERMINATE AN OTHERWISE BINDING PURCHASE AGREEMENT.

 

 6  Appliances/Systems/Services: The items below are in working

 

 7  order (the items below are included in the sale of the property

 

 8  only if the purchase agreement so provides):

 

 

                          Yes    No        Unknown  Not Available

10 Range/Oven                ____   ____      ____     ____

11 Dishwasher                ____   ____      ____     ____

12 Refrigerator              ____   ____      ____     ____

13 Hood/fan                  ____   ____      ____     ____

14 Disposal                  ____   ____      ____     ____

15        TV antenna, TV rotor & controls      

____     

____     

____     

____

16 Electrical system         ____   ____      ____     ____

17        Garage door opener & remote control  

____     

____     

____     

____

18 Alarm system              ____   ____      ____     ____

19 Intercom                  ____   ____      ____     ____

20 Central vacuum            ____   ____      ____     ____

21 Attic fan                 ____   ____      ____     ____

22        Pool heater, wall liner & equipment  

____     

____     

____     

____

23 Microwave                 ____   ____      ____     ____

24 Trash compactor           ____   ____      ____     ____

25 Ceiling fan               ____   ____      ____     ____

26 Sauna/hot tub             ____   ____      ____     ____


Washer                    ____   ____      ____     ____

Dryer                     ____   ____      ____     ____

Lawn sprinkler system     ____   ____      ____     ____

Water heater              ____   ____      ____     ____

Plumbing system           ____   ____      ____     ____

6         Water softener/conditioner  

____     

____     

____     

____

Well & pump               ____   ____      ____     ____

8         Septic tank & drain field   

____     

____     

____     

____

Sump pump                 ____   ____      ____     ____

10 City Water System         ____   ____      ____     ____

11 City Sewer System         ____   ____      ____     ____

12        Central air conditioning    

____     

____     

____     

____

13 Central heating system    ____   ____      ____     ____

14 Wall furnace              ____   ____      ____     ____

15 Humidifier                ____   ____      ____     ____

16 Electronic air filter     ____   ____      ____     ____

17 Solar heating system      ____   ____      ____     ____

18 Fireplace & chimney       ____   ____      ____     ____

19 Wood burning system       ____   ____      ____     ____

 

 

20  Explanations (attach additional sheets if necessary):

 

21  ________________________________________________________________       

 

22  ________________________________________________________________       

 

23  ________________________________________________________________       

 

24  ________________________________________________________________       

 

25  ________________________________________________________________       

 

26  UNLESS OTHERWISE AGREED, ALL HOUSEHOLD APPLIANCES ARE SOLD IN

 

27  WORKING ORDER EXCEPT AS NOTED, WITHOUT WARRANTY BEYOND DATE OF

 


 1  CLOSING.

 

 

 

 2  Property conditions, improvements & additional information:

 

 

3  1.    Basement/crawl space: Has there been evidence of water?

4                  yes____ no____

If yes, please explain:_______________________________________

6  2. Insulation: Describe, if known________________________________

7        Urea Formaldehyde Foam Insulation (UFFI) is installed?

8                  unknown____ yes____ no____

9  3. Roof: Leaks? yes____ no____

10       Approximate age if known _____________________________________

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

12 Has the water been tested?          yes____ no____

13       If yes, date of last report/results: __________________________

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

15 _____          

16 6.    Heating System: Type/approximate age: _________________________

17 7.    Plumbing system: Type: copper__ galvanized__ other__

18       Any known problems? ___________________________________________

19 8.    Electrical system: Any known problems? ________________________

20 _____          

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

22 10. Environmental Problems: Are you aware of any substances,

23 materials, or products that may be an environmental hazard

24 such as, but not limited to, asbestos, radon gas,

25 formaldehyde, lead-based paint, fuel or chemical storage

26 tanks and contaminated soil on the property.

27                 unknown___yes___no___

28 If yes, please explain:________________________________________


1  _____          

2  11. Flood insurance: Do you have flood insurance on the

property?

4                  unknown___yes___no___

5  12. Mineral rights: Do you own the mineral rights?

6                  unknown___yes___no___

 

 

 7  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

10 other features whose use or responsibility for maintenance

11 may have an effect on the property?

12                 unknown___yes___no___

13 2. Any encroachments, easements, zoning violations, or

14 nonconforming uses?

15                 unknown___yes___no___

16 3. Any "common areas" (facilities like pools, tennis courts,

17 walkways, or other areas co-owned with others), or a

18 homeowners' association that has any authority over the

19 property?

20                 unknown___yes___no___

21 4. Structural modifications, alterations, or repairs made

22 without necessary permits or licensed contractors?

23                 unknown___yes___no___

24 5. Settling, flooding, drainage, structural, or grading

25 problems?

26                 unknown___yes___no___

27 6. Major damage to the property from fire, wind, floods, or

28 landslides?

29                 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?

10                 unknown___yes___no___

11 11. Any pending litigation that could affect the property or the

12 seller's right to convey the property?

13                 unknown___yes___no___

 

14 If the answer to any of these questions is yes, please explain.

15 Attach additional sheets, if necessary:_____________________________

16       

17       

18       

19       

 

20  The seller has lived in the residence on the property from

 

21  _________________ (date) to _________________ (date). The seller

 

22  has owned the property since ___________________ (date). The

 

23  seller has indicated above the condition of all the items based

 

24  on 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 hold

 

28  the broker liable for any representations not directly made by

 

29  the broker or broker's agent.


    Senate Bill No. 370 as amended June 21 and 22, 2005

 

 1  Seller certifies that the information in this statement is

 

 2  true and correct to the best of seller's knowledge as of the date

 

 3  of seller's signature.

 

 

BUYER SHOULD OBTAIN PROFESSIONAL ADVICE AND INSPECTIONS

OF THE PROPERTY TO MORE FULLY DETERMINE THE CONDITION

OF THE PROPERTY. THESE INSPECTIONS SHOULD TAKE INDOOR

7  AIR AND WATER QUALITY INTO ACCOUNT, AS WELL AS ANY

8  EVIDENCE OF UNUSUALLY HIGH LEVELS OF POTENTIAL

9

   ALLERGENS <<INCLUDING, BUT NOT LIMITED TO, HOUSEHOLD MOLD, MILDEW AND BACTERIA>>.

10 BUYERS ARE ADVISED THAT CERTAIN INFORMATION COMPILED

11 PURSUANT TO THE SEX OFFENDERS REGISTRATION ACT,

12 1994 PA 295, MCL 28.721 TO 28.732, IS AVAILABLE TO

13 THE PUBLIC. BUYERS SEEKING THAT INFORMATION SHOULD

14 CONTACT THE APPROPRIATE LOCAL LAW ENFORCEMENT AGENCY

15 OR SHERIFF'S DEPARTMENT DIRECTLY.

16 BUYER IS ADVISED THAT THE STATE EQUALIZED VALUE OF THE

17 PROPERTY, PRINCIPAL RESIDENCE EXEMPTION INFORMATION,

18 AND OTHER REAL PROPERTY TAX INFORMATION IS AVAILABLE

19 FROM THE APPROPRIATE LOCAL ASSESSOR'S OFFICE. <<BUYER

20 SHOULD NOT ASSUME THAT BUYER'S FUTURE TAX BILLS ON THE

21 PROPERTY WILL BE THE SAME AS THE SELLER'S PRESENT TAX

22 BILLS. UNDER MICHIGAN LAW, REAL PROPERTY TAX

23 OBLIGATIONS CAN CHANGE SIGNIFICANTLY WHEN PROPERTY IS

24 TRANSFERRED.>>

 

 

25  Seller________________            Date___________________________

 

26  Seller________________            Date___________________________

 

27  Buyer has read and acknowledges receipt of this statement.

 


   Senate Bill No. 370 as amended June 21, 2005

 1  Buyer___________ Date______________________ Time:_______________

 

 2  Buyer___________ Date______________________ Time:_______________

 

 

 

 3        (2) A form described in subsection (1) printed before

 

 4  March 8, 2000  <<January 1, 2006

 

 

 5    amended this subsection >> that was in compliance with this section

 

 6  at that time may be utilized and shall be considered in

 

 7  compliance with this section until  June 6, 2000  <<April 1, 2006.

 

 8    the effective date of the 2005 amendatory act that amended this

 

 9  subsection.>>

          <<Enacting section 1. This amendatory act takes effect January 1,     2006.>>