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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 or his/her agent 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.
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