Property: land sales; seller disclosure statement; require to reflect yearly property taxes based on current assessed value of property. Amends sec. 7 of 1993 PA 92 (MCL 565.957).
By requiring disclosures of estimated property taxes at the time of sale, HB4110 seeks to mitigate potential buyer surprises and ensure that transactions are more transparent regarding financial responsibilities. This change will likely protect consumers and encourage a more informed purchase process. Moreover, it aligns with increasing trends toward transparency in residential real estate dealings which can build buyer confidence in the housing market.
House Bill 4110 amends the Seller Disclosure Act of 1993 in Michigan, specifically targeting section 7 of the act. The bill mandates that sellers of residential property must provide a disclosure statement that includes the estimated annual real property taxes based on the property's current assessed value. This requirement aims to inform potential buyers more comprehensively about the financial obligations associated with the property, thus enhancing transparency in real estate transactions.
Despite its potential benefits, the bill may face contention from sellers who could argue that mandatory disclosure of future tax obligations may complicate sales or potentially reduce buyer interest. Furthermore, concerns may arise from real estate agencies over the implications of accurately estimating future taxes, as actual amounts can fluctuate based on property assessments and local millage rates. Industry advocates might also have contrasting views on how this requirement could affect the speed of property transactions.