Bill > HB5366

This bill amends Michigan's occupational code to address real estate wholesaling and mandatory disclosures, introducing several key provisions. The legislation defines new terms like "real estate wholesaling" and "assignment fee," and expands the definition of a real estate broker to include individuals who advertise, market, or negotiate the assignment or transfer of a buyer's legal or equitable interest in residential real property. The bill requires that when someone holds only an equitable interest in residential property and advertises it, they must disclose this status and cannot represent themselves as the titled owner. Additionally, the bill mandates that before assigning a real estate purchase agreement, a buyer (assignor) must provide the property seller with a written disclosure that includes their intent not to occupy the property, the expected resale price or assignment fee, and informs the seller of a 5-business-day cancellation right. The legislation also clarifies advertising requirements, ensuring that individuals advertising properties they have an interest in but do not fully own provide transparent information about their status. These changes aim to increase transparency in real estate transactions, particularly in wholesale real estate practices, and protect sellers by ensuring they have clear information about potential property transfers.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5366