Selling Your Metro Detroit Home - Sellers Disclosures

By law everybody must fill out a sellers disclosure unless you are a bank selling a foreclosure.  It does not matter whether you live in Commerce or Northville or Dearborn.  You must fill out a sellers disclosure if you sell a home.  Otherwise you will be opening yourself up to a possible lawsuit.

Whose obligation is it to disclose pertinent information about a property? 
In Michigan, it is the seller's obligation to disclose information. Under the strictest laws, you and your agent, if you have one, are required to disclose all facts materially affecting the value or desirability of the property which are known or accessible only to you. This might include: homeowners association dues; whether or not work done on the house meets local building codes and permits requirements; and any restrictions on the use of the property, such as zoning ordinances or association rules.

What are the standard contingencies for a Metro Detroit home purchase?
Most Oakland County home purchase offers include two standard contingencies.

1.) A mortgage financing contingency, which makes the sale dependent on the buyers' ability to obtain a loan commitment from a lender

2.) An inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. As a buyer you have the right to back out of the purchase if your home inspection has issues.

As a buyer, you could forfeit your deposit under certain circumstances, such as backing out of the deal for no reason.  You cannot break a contract because you do not like the house anymore. The purchase contract includes the sellers responsibilities, such things as passing clear title, and maintaining the property in its present condition until closing.

Do I need an attorney when I buy a house?
I would never say no to this just because of liability reasons.  Our purchase contract has been used in thousands of home purchase.  We are constantly fine tuning it to protect our clients.  Yes when an attorney gets involved they like to cross off some thing.  
Sometimes the wrong things. Most home buyers are capable of handling routine real estate purchase contracts as long as they make certain they read the fine print and understand all the terms of the contract.

 In particular, you should be clear on the terms of any contingency clauses that will allow them to back out of the contract. If you have any questions at all, it may be advisable to consult an attorney to avoid future legal problems. In looking for an attorney, ask friends for recommendations or ask your real estate agent to recommend several. Call to inquire about fees and to check on their experience. In general, more experienced attorneys will cost more, but real estate fees as a rule are small relative to the cost of the property you are buying.

What repairs should the seller make before you list your Metro Detroit home?
Anything that would stop a sale of your Oakland County home should be fixed.  If you want to get top dollar for your property, you probably need to make all minor repairs and selected major repairs before going on the market. Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair. The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market but many buyers willing to buy at almost any price. On the other hand, making such repairs may be the only way to sell your house in a down market.

Do sellers have to disclose the terms of other offers?
Sellers are not legally obligated to disclose the terms of other offers to prospective buyers.

Will a neighbor problem reduce the value of my property?
While it may not reduce the actual value, a cluttered landscape next door can detract from the positive aspects of your home. Review your local laws, which should be on file at the public library, county law library or City Hall. A typical "junk vehicle" ordinance, for example, requires any disabled car to either be enclosed or placed behind a fence. And most cities prohibit parking any vehicle on a city street too long. It also may be worthwhile to check into local zoning ordinances.

However remember if you get your neighbor angry at you prior to listing your home it could have major consequences.  I have seen neighbors put up signs.  I have had neighbors come up and tell my clients what is wrong with the house.  I have seen neighbors junk up their house purposely.

How do I get the real scoop on homes I am looking at?

I think one of the best ways is to talk to the neighbors.  Your home inspection, seller disclosure requirements and your agent's experience will help. , automatic garage door opener, rain gutters, sump pump.

Sellers also are required to indicate any significant defects or malfunctions existing in the home's major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property. Also look for, or ask about, settling, sliding or soil problems, flooding or drainage problems and any major damage resulting from earthquakes, floods or landslides.

People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions. It's important to note that the simple idea of disclosing defects has broadened significantly in recent years. Many jurisdictions have their own mandated disclosure forms as do many brokers and agents. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from cautious buyers. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.

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