Michigan Contract & Transaction Specifics

Real estate contracts in Michigan must satisfy the Statute of Frauds, so agreements for the sale of real property must be in writing and signed to be enforceable. Sellers of residential property generally must deliver a Seller's Disclosure Statement to the buyer, and the agency relationship must be disclosed as required by Michigan law. Earnest money and other client funds tied to a transaction must be placed in the broker's trust or escrow account and may not be commingled with the broker's own funds. Because Michigan is not a community property state, ownership and conveyance of marital property follow Michigan's common-law and statutory rules rather than community property principles.