Together with McClelland and Anderson, L.L.P. has put together the most frequently asked legal questions. MAR hopes members will find this information useful and will continue to utilize the MAR Legal Hotline to help guide them through today’s ever-changing real estate market.
Q: My sellers are not going to provide a Seller’s Disclosure Statement because they have never lived in the residence, but have only used it as a rental. Is this proper?
A: NO. Sellers are not exempt from Seller Disclosure Act requirements just because they have never lived in the property. Sellers who have owned and leased a residence must nonetheless fill out the Seller’s Disclosure Statement to the best of their knowledge. The list of exceptions can be found in Section 3 of the Seller Disclosure Act. MCL 565.953.
Q: I am a REALTOR® representing a bank that is selling a property that it has repossessed through the foreclosure process. The bank tells me that it is exempt from both the Michigan Seller Disclosure Act well as the Federal Lead Based Paint Disclosure requirements. Is this correct?
A: This is partially correct. The bank is exempt from the Michigan Seller Disclosure Act but it is not exempt from the Federal Lead Based Paint Disclosure requirements. Under the Michigan Seller Disclosure Act, both
the foreclosure sale itself, and the subsequent resale by the lender to a third party, are exempt from the disclosure requirements. MCL 565.953(c). As to the Federal Lead Based Paint Disclosure
Law, while the original foreclosure sale is exempt, a subsequent resale from the lender is not.
Q: We had a buyer come to our office who has plainly stated that he does not want a woman representing him. What should I tell him?
A: The Fair Housing Act prohibits a broker from matching clients with agents on the basis of gender (or on the basis of any other protected class).
Q: I am a REALTOR® who has hired an unlicensed assistant. I am having my assistant make cold calls to prospective sellers. I have made sure that my assistant has verified that these prospective sellers are not on the Do Not Call List. Can my assistant make these calls?
A: NO. An individual must be licensed in order to make cold calls to prospective clients.
Q: What must be included in a real estate licensee’s advertising?
A: Rule 329 states that all advertisements to buy, sell, exchange, rent, lease, or mortgage real estate or business opportunities must include the broker’s name, as licensed, and either the broker’s telephone number or street address. Salespersons may only advertise to sell property in their own name if the property is their personal residence. MAR
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