Sell a Home
Seller Disclosure - Act 84 of 1996
Act 84 of 1996 applies to the transfer of any interest in residential real estate consisting of one to four dwelling units. Sellers must complete a mandatory form prescribed by statute, the "Sellers Property Disclosure Statement." This form must be completed and provided to the buyer prior to the execution of an agreement of sale.
Act 84 requires the seller to answer specific questions about the property. A seller must also disclose to a buyer all known material defects that are not readily observable. The disclosure statement is designed to assist the seller in complying with the disclosure requirements and to assist the buyer in evaluating the property being considered. The statement discloses the seller's knowledge of the condition of the property as of the date signed by the seller and is not a substitute for any inspections or warranties that the buyer may wish to obtain. This statement does not relieve the seller of the obligation to disclose a material defect that may not be addressed on the form. The term "material defect" is defined as a problem with any portion of the property (including fixtures) "that would have a significant, adverse impact on the value. or that involves an unreasonable risk to people on the land."
Under the provisions of Act 84, sellers are not responsible for inaccuracies of which they had no knowledge, if they reasonably believed that the defect had been corrected or if they relied on information from certain enumerated sources. Agents are not liable under any circumstances unless they knowingly act in concert with the buyer or seller to violate the provisions of the Act.
There are various exemptions where the form is not required.