Important Points from Michigan Realtors Website!

    Important Points from Michigan Realtors Website!

    Apr 29, 2020

    1. Home inspectors are included under the term “financial

    services” only to the extent that a loan program or existing

    purchase agreement requires an inspection by a qualified

    inspector before the transaction can be completed. Must prove

    there is an existing contract and inspector is “qualified.” (Real

    estate licensees cannot act as a home inspector to list and sell

    properties, nor ask a “qualified” home inspector to list or show

    properties on their behalf) Home inspectors do not have to

    accept assignments.

    2. Buyers can attend the home inspection… but only with

    the permission of both the inspector and the sellers. Inspectors,

    like other persons who have been deemed “critical

    infrastructure workers,” are responsible for implementing

    mitigation measures for protecting their patrons as necessary to

    comply with the Governor’s Order. [Michigan Realtors®

    COVID-19 FAQ’s] NOTE: March 23, 2020 Executive Order

    2020-21, Order #1 states: This order must be construed broadly

    to prohibit in-person work that is not necessary to sustain or

    protect life. In view of the Governor’s recent strict

    interpretation regarding shelter in place, attending the home

    inspection is not necessary to sustain or protect life and is

    prohibited for the buyer(s).

    3. Real estate licensees can only attend closings remotely

    (via phone or video conference). Licensees should review the

    closing documents prior to closing to comply with license law

    making sure the details of the sale are consistent with the

    purchase agreement.

    4. Licensees cannot personally visit a home to take photos

    for a listing, regardless if the resident is present or not.

    5. “Walk-throughs” are not permitted during the Governor’s

    Order. They must either be done remotely, waived or the

    closing delayed until the Order is lifted and the walkthrough

    completed.

    6. Buyers cannot use the coronavirus pandemic to

    unilaterally terminate a pending contract. This could result in a

    breach of contract with damages assessed to the breaching

    party.

    

    7. A cash buyer cannot use the excuse that they no longer

    have sufficient funds to close on the home due to current

    financial conditions of the market. This could also result in a

    breach of contract by the buyer.