Michigan Real Estate Purchase Agreement

In a Michigan Real Estate Purchase Agreement, a potential buyer engages in discussions with a seller to establish the terms of the deal. This document is born out of these negotiations and outlines the specifics of the real estate transaction in Michigan. The seller is furnished with a proposed offer and deposit payment plan. This could involve financing from a bank, the seller, or funds from selling another dwelling.

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Michigan Real Estate Purchase Agreement

Ensure you adhere to the state laws by downloading our lawful customizable Michigan Real Estate Purchase Agreement template.

For the Michigan Real Estate Purchase Agreement to be legally binding and valid, it must encompass certain fundamental aspects.

  • Parties involved must be legally competent
  • There must be mutual agreement among the parties to enter into the contract
  • An offer, acceptance, and consideration must be included in the contract.
  • The contract must serve a legal purpose.

If any of these are absent from a property contract, it could potentially be deemed invalid by a court of law. Furthermore, it’s crucial to note that all Michigan Real Estate Purchase Agreements must be documented in writing and bear the signatures of all parties involved to be enforceable. This ensures the legality and enforceability of the agreement.

Writing Requirement (when it becomes legal) 

In the context of a real estate purchase agreement in Michigan, key details must be included to ensure a smooth property transaction. These include:

  • Purchase Price: This is the mutually agreed sum that you, as the buyer, commit to paying the seller in return for the property title.
  • Closing Date: This is the specified date when the property transaction is concluded, and the payment for the property is due.
  • Earnest Money Deposit: This is a deposit you make, typically when signing, to demonstrate your serious intent to purchase the property from the seller.
  • Contingencies: Common contingencies may include the sale of your previous home or the property passing a home inspection.
  • Disclosure Requirements: These are any potential issues with the property that the seller is obligated to disclose to you before the sale is closed. 

The Michigan Real Estate Contract provides a comprehensive property sale process framework by including these essential elements.

Required Disclosures 

In a Michigan Real Estate Purchase Agreement, certain mandatory disclosures need to be made:

  • Lead-Based Paint Disclosure: If the property in question was constructed before 1978, it’s incumbent on the seller to notify the buyer if any toxic lead-based paint has been used within the premises.
  • Seller’s Property Disclosure Statement: The seller must provide the buyer with a comprehensive report of the property’s current condition. It’s also recommended that the buyer arrange for a professional premises inspection.

According to the Seller Disclosure Act, failure to disclose certain information about the premises is punishable by law. The buyer can cancel the sale and receive a full or partial refund. If there are any issues, it’s best to be honest and transparent, as the buyer can file a claim for fraud and misrepresentation within six (6) months of the closing date. Being sincere upfront is always a more cost-effective approach.