November 9, 2006, Introduced by Senator GILBERT and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to regulate certain persons building certain
residential structures; to provide for certain disclosures and
prescribe certain limitations regarding the transfer of that
residential structure; and to provide for remedies and penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "owner
built residence transfer act".
Sec. 3. As used in this act:
(a) "Owner-builder" means a person who is not a licensed
residential builder and who builds, or acts as a general contractor
for the construction of, a residential structure in which that
person, or an agent, employee, partner, officer, trustee, member,
or shareholder of that person, actually resides upon the issuance
of an occupancy permit.
(b) "Residential builder" means a person engaged in the
construction of a residential structure or a combination
residential and commercial structure who, for a fixed sum, price,
fee, percentage, valuable consideration, or other compensation,
other than wages for personal labor only, undertakes with another
or offers to undertake or purports to have the capacity to
undertake with another for the erection, construction, replacement,
repair, alteration, or an addition to, subtraction from,
improvement, wrecking of, or demolition of, a residential structure
or combination residential and commercial structure; a person who
manufactures, assembles, constructs, deals in, or distributes a
residential or combination residential and commercial structure
which is prefabricated, preassembled, precut, packaged, or shell
housing; or a person who erects a residential structure or
combination residential and commercial structure except for the
person's own use and occupancy on the person's property.
(c) "Residential structure" means a premises used or intended
to be used for a residence purpose and related facilities
appurtenant to the premises used or intended to be used as an
adjunct of residential occupancy.
(d) "Seller disclosure form" means the form required to be
filed by a transferor of a residential structure as further
described in section 7 of the seller disclosure act, 1993 PA 92,
MCL 565.957.
Sec. 5. (1) An owner-builder shall do either of the following
upon completion of construction and issuance of the occupancy
permit regarding a residential structure:
(a) Place the residential structure up for sale in any manner
allowed by law. This subdivision allows the owner-builder to
decorate and place furniture in the residential structure but does
not allow any individual to actually reside in the residential
structure.
(b) Reside in the residential structure.
(2) An owner-builder who actually resides in that residential
structure shall not sell or transfer ownership of the residential
structure to another person for at least 120 days after the owner-
builder takes up residence.
Sec. 7. An owner-builder who actually resides in and sells the
residential structure, within 2 years or less from the date of the
issuance of the occupancy permit, shall note in the seller
disclosure form the fact that the residential structure was built
by the owner.
Sec. 9. An owner-builder who violates this act is subject to
any civil or criminal remedies or penalties provided by law.
Enacting section 1. This act does not take effect unless
Senate Bill No. 1489
of the 93rd Legislature is enacted into law.