Michigan Real Estate Purchase Agreement Generator

What is a Michigan Real Estate Purchase Agreement?

A Michigan Real Estate Purchase Agreement is a legally binding contract between a buyer and seller for the purchase and sale of real property located in Michigan. This document outlines the terms and conditions of the transaction in accordance with Michigan law, including property disclosures, financing contingencies, inspection periods, and closing procedures that reflect Michigan's specific real estate practices and legal requirements.

Key Sections Typically Included:

• Parties and Property Legal Description
• Purchase Price and Earnest Money Deposit
• Michigan Seller Disclosure Statement Requirements
• Lead-Based Paint and Environmental Disclosures
• Financing Contingencies with Michigan-Specific Timelines
• Inspection and Due Diligence Provisions
• Michigan Title Insurance and Survey Requirements
• Well and Septic Inspections (if applicable)
• Property Tax Proration (Summer/Winter Tax System)
• Michigan State Transfer Tax Allocation
• County Transfer Tax Allocation
• Water/Sewer and Utility Escrow Requirements
• Closing and Possession Timeline
• Michigan-Specific Default Remedies
• Agency Disclosure Requirements (per Michigan law)
• Homeowner Association Provisions
• Mineral Rights Provisions (common in Michigan)
• Condominium/Site Condominium Provisions (if applicable)
• Property Condition and Code Compliance

Why Use Our Generator?

Our Michigan Real Estate Purchase Agreement generator creates a comprehensive document tailored to Michigan's unique real estate practices and legal requirements. Michigan has specific disclosure laws, tax proration methods, and closing customs that differ from other states. Using a Michigan-specific agreement ensures that both buyers and sellers are protected while complying with state-specific requirements such as the Seller Disclosure Act, Michigan's distinct property tax system, and environmental testing requirements common in certain Michigan regions.

Frequently Asked Questions

• Q: What disclosures are required in a Michigan real estate transaction?

  • A: The agreement should reference the Michigan Seller Disclosure Statement (required by the Seller Disclosure Act, MCL 565.951-565.966), which must be provided to the buyer prior to accepting an offer. This detailed form covers structural elements, systems, and known issues with the property. For homes built before 1978, a lead-based paint disclosure is required. The agreement should also address well and septic inspections if applicable (required in many Michigan counties before transfer), flood zone status, and environmental hazards like radon or PFAS contamination that may be regionally significant in Michigan. If the property is part of a homeowners association or condominium, the agreement should provide for disclosure of association bylaws, financial information, and restrictions.

• Q: How should property tax prorations be handled in a Michigan purchase agreement?

  • A: Michigan has a unique property tax system with summer and winter tax bills that varies by municipality, requiring specific proration language. The agreement should specify whether taxes will be prorated on a due date or calendar year basis, address Michigan's principle residence exemption status (formerly called homestead exemption), and clarify responsibility for any special assessments. The document should explain that summer taxes are typically billed on July 1 and winter taxes on December 1, but the billing and collection dates vary by municipality. It should also address how any tax incentives, like Michigan's Principal Residence Exemption, Farmland Preservation tax credits, or industrial/commercial abatements will be handled at closing.

• Q: What closing considerations are unique to Michigan real estate transactions?

  • A: The agreement should address Michigan's state transfer tax (currently $3.75 per $500 of property value) and county transfer tax ($0.55 per $500), specifying who pays each tax (customarily the seller, but negotiable). It should include provisions for any municipal utility readouts or escrows that may be required by local governments in Michigan. The document should address well and septic inspections where applicable, as many Michigan counties require testing and certification before property transfers. For waterfront properties, the agreement should address riparian rights and Department of Environment, Great Lakes, and Energy (EGLE) restrictions. The agreement should also specify whether the closing will be conducted through a title company (most common in Michigan) or attorney, and address Michigan's recording requirements for deeds and transfer documents.