Michigan Real Estate Broker Exam — All Questions

Under the Michigan Seller Disclosure Act, the seller of most residential property (one to four units) must provide the buyer with:

• a.A certified appraisal
• b.A title insurance policy paid by the seller
• c.A municipal inspection certificate
• d.A completed Seller's Disclosure Statement describing the property's known condition✓

The Michigan Seller Disclosure Act requires sellers of most residential property of one to four units to deliver a Seller's Disclosure Statement describing the known condition of the property and its systems. It is a disclosure of known conditions, not a warranty, and the licensee must ensure it is delivered and must never help conceal known defects. Certain transfers (for example, some foreclosures or estate sales) are exempt.

The Michigan Land Sales Act primarily regulates:

• a.The sale of any single existing home
• b.The offering and sale of subdivided land or lots to buyers, requiring disclosures✓
• c.Commercial leasing only
• d.Property tax assessment appeals

The Michigan Land Sales Act regulates the offering and sale of subdivided lands and lots, requiring registration and disclosures designed to protect purchasers of undeveloped or subdivided parcels. It targets developer sales of multiple lots rather than an ordinary resale of a single existing home. Brokers involved in new subdivision sales should confirm Land Sales Act compliance.

A Michigan seller completes the Seller's Disclosure Statement. If the seller does not know the condition of an item, the seller should:

• a.Mark it as 'unknown' rather than guessing or leaving it blank✓
• b.Leave the entire form blank
• c.State that the item is in perfect condition
• d.Have the buyer's agent fill in the answer

The Seller's Disclosure Statement asks the seller to report actual knowledge; when the seller genuinely does not know an item's condition, the correct response is to mark it 'unknown' rather than guess, misstate, or leave it blank. Guessing or falsely claiming good condition can create misrepresentation liability. The licensee should not complete the seller's disclosures for the seller.