HOUSE BILL No. 5854


     May 13, 1998, Introduced by Reps. Schermesser, DeHart, Kelly, Brewer, Hale, Wojno, Hood, Brown, Callahan and Parks and referred to the Committee on Consumer Protection.


        A bill to amend 1993 PA 92, entitled

   "Seller disclosure act,"

   by amending the title and section 10 (MCL 565.960).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                                  TITLE

 2         An act to require certain disclosures in connection with

 3    transfers of residential property AND TO PROVIDE FOR CERTAIN

 4    CIVIL REMEDIES.

 5         Sec. 10.  (1) Each disclosure required by this act shall be

 6    made in good faith.  For purposes of this act, "good faith" means

 7    honesty in fact in the conduct of the transaction.

 8         (2) A TRANSFEROR SHALL NOT KNOWINGLY DELIVER FALSE OR INAC-

 9    CURATE INFORMATION TO A TRANSFEREE IN A DISCLOSURE UNDER THIS ACT

10    OR KNOWINGLY FAIL TO DELIVER TO A TRANSFEREE INFORMATION THAT IS

11    REQUIRED TO BE DELIVERED IN A DISCLOSURE REQUIRED UNDER THIS


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 1    ACT.  A TRANSFEREE WHO SUFFERS A LOSS AS A RESULT OF A

 2    TRANSFEROR'S VIOLATION OF THIS SUBSECTION MAY BRING AN ACTION IN

 3    A COURT OF COMPETENT JURISDICTION TO RECOVER ACTUAL DAMAGES

 4    RESULTING FROM THAT VIOLATION OR $2,500.00, WHICHEVER IS

 5    GREATER.  ACTUAL DAMAGES INCLUDE THE REASONABLE EXPENSES OF THE

 6    TRANSFEREE IN REPAIRING A CONDITION OF THE PROPERTY AS TO WHICH

 7    FALSE OR INACCURATE INFORMATION WAS KNOWINGLY PROVIDED OR INFOR-

 8    MATION WAS KNOWINGLY OMITTED.  A TRANSFEREE MAY ALSO RECOVER REA-

 9    SONABLE ATTORNEY FEES IN AN ACTION UNDER THIS SUBSECTION.






































   05505'98          Final page.                            DRM