Michigan License Law Practice Test

Which document must a seller complete when disclosing property conditions in Michigan?

1. Listing agreement

2. Seller's Disclosure form

3. Purchase agreement

4. Lease agreement

The correct answer is: Seller's Disclosure form

In Michigan, when a seller is disclosing property conditions, the specific document that must be completed is the Seller's Disclosure form. This form is required by law and provides potential buyers with essential information regarding the property’s condition, including any known issues, repairs, or alterations that could affect the value or safety of the home. The Seller’s Disclosure form is integral in promoting transparency in real estate transactions, and it protects both the seller and the buyer by documenting the condition of the property upfront. This not only helps buyers make informed decisions but also reduces the likelihood of disputes arising after the sale. Other documents such as the listing agreement, purchase agreement, and lease agreement serve different purposes. The listing agreement is primarily between the seller and the real estate broker regarding the listing of the property for sale. The purchase agreement outlines the terms and conditions of the sale once an offer is made and accepted. The lease agreement is used for rental properties and does not pertain to the sale of real estate. Therefore, the Seller's Disclosure form is the correct and required document for property condition disclosure in Michigan.