734-359-7018
Now Accepting New Clients!
Blog

CONTRACTS 6: Do you understand the clauses in your Purchase Agreement?

This case arises out of plaintiff’s purchase of a personal residence from defendants (sellers) in 2016. Sellers had completed a Seller’s Disclosure Statement (SDS) on August 8, 2015, which they had updated on December 30, 2015. Pertinent to the issues here, the SDS indicated that the house had a geothermal heating system that was in working order. Further, the SDS indicated that there were features of the property deemed in common with the adjoining landowners, including roads, whose use or responsibility for maintenance may have an effect on the property.

In May 2016, plaintiff and sellers executed a purchase agreement for the sale of the subject property. Defendant W, an independent agent with Keller Williams Realty, represented sellers in the transaction.

Pertinent to this appeal, the purchase agreement contained an “as-is-condition” clause, providing:

AS IS CONDITION: Purchaser acknowledges that Seller has provided Purchaser a required Seller’s Disclosure Statement. Purchaser has been afforded an independent inspection of the property and the Purchaser affirms that Purchaser has examined the above described property and is satisfied with the physical condition of the structure thereon and purchases said property in an “AS IS CONDITION,” subject only to the rights of a property inspection.

It is further agreed that Keller Williams Realty and its agents have made no representations or warranties of any kind nor assume any responsibility for representations made by Seller or any cooperating broker pertaining to the condition of the property. The purchase agreement also contained an arbitration clause.

In December 2016, several months after the closing, the geothermal furnace allegedly failed. Plaintiff maintained that he was informed that it was necessary to replace the unit

On March 23, 2018, plaintiff initiated the instant action by filing a complaint. The complaint alleged that before execution of the purchase agreement, defendants knowingly made representations attesting to the proper working condition of the property’s geothermal heating system, even though defendants knew that these representations were false and that the furnace was broken or showed signs of potential breakdown. The complaint further alleged that sellers omitted facts regarding ownership of the private road and its condition.

Plaintiff sought to void the purchase agreement on this basis and requested damages equal to the purchase price, the mortgage payments he had made on the home, and the cost of repairing the private road.

On May 2, 2018, in lieu of filing an answer, defendants moved for summary disposition pursuant to MCR 2.116(C)(7), (8), and (10). The trial court granted defendants’ motion for summary disposition under MCR 2.116(C)(7), concluding that the claims against the realty companies were barred by the valid release contained in the purchase agreement and that the claims against sellers were required to be resolved in arbitration because they fell within the scope of the arbitration clause in the purchase agreement.

Finding the right attorney to assist with the purchase, sale or acquisition of real estate is critical.

Whether you are buying or selling a home or you are involved in a commercial real estate transaction, an experienced real estate attorney can make a world of difference.

Contact Aldrich Legal Services

Three reasons to put a power of attorney in place

Originally posted on 11/08/2016 While no one wants to think of the unfortunate possibility of being incapacitated or of a time when we can't handle our own affairs, this circumstance is a real possibility. If something happens and this...

How to approach parents about estate planning

Originally posted on 12/09/2016 Family forms a strong foundation for many people's first and most intimate community. It is important to strengthen these first relationships so even uncommon questions become natural. For those...

PROBATE 44: Petition for Mental Health Treatment

Michigan’s Mental Health Code governs the civil admission and discharge procedures for a person with a mental illness. Specifically, MCL 330.1434 sets forth the procedure and content requirements for a petition for mental health treatment.

Should you get your criminal record expunged?

Originally posted on 04/12/2017 If you have been convicted of a crime, have served your sentence, and have followed all court recommendations, you should be able to put your past behind you and move on with life. Moving forward is critical...

Choosing the right executor for an estate

Originally posted on 05/28/2017 When people are thinking about planning their estate, they often think about trying to minimize the estate tax, keeping their will updated, and keeping items out of probate court; however, there is another...

Understanding how the Miranda warning works

Originally posted on 11/25/2016 Michigan residents who have seen television police shows or movies involving law enforcement have no doubt watched many dramatic scenes with officers quoting something to the effect of, "You have the...

PROBATE 42: Dissolution of professional corporation.

This case involves the estate of a doctor whose professional corporation also had to be dissolved upon his death. The personal representative of the estate sold the company’s assets but did not pay off the company’s debts before transferring the proceeds to the estate and distributing them to the heirs.

A basic introduction to wills

Originally posted on 10/31/2016 It can be difficult to consider the end of our lives when we are in good health. However, lives can change at any moment, so it is wise to be prepared for any situation that may arise. Despite the many...

REAL ESTATE 73: Quiet title action.

This case involves a dispute over real property located in Michigan. W and V who are D’s parents, acquired the property. In 1999, W and V conveyed the property to the Trust, to which W is the sole trustee, via a quit claim deed. At some point...

How Is Alimony Determined In A Michigan Divorce?

Originally posted on 06/22/2018. When filing for divorce in Michigan, you may seek alimony, spousal support, from their spouse whenever they require financial aid. A judge may order your spouse to pay certain alimony. However, it depends...

Is My Conviction Eligible for Expungement?

Originally posted on 10/11/2019. At one point or another, we have all made mistakes. For some people, those mistakes involved breaking the law. Convictions have a large impact on someone’s life. Beyond the sentencing ranging from...

PROBATE 45: The court held that the probate court did not err by granting summary disposition for Plaintiff, or by denying Defendant’s request for an extension of the discovery period, adjournment of mediation, and issuance of subpoenas and by dismi

This case arises out of competing petitions for probate. On November 19, 2018, Defendant initiated this case by filing a petition for probate, attaching Decedent’s death certificate and purported last will and testament, dated March 9, 2007,...

DIVORCE 57: Holding that the trial court’s factual findings were not supported by the record evidence, and thus could not stand, the court reversed, vacated the portion of the Amended Default JOD ordering defendant to pay $3,325 to plaintiff, and re

Plaintiff first testified that she and defendant purchased the marital home in 1995. At the time the first default judgment of divorce was entered in September 2017, plaintiff had the home appraised. The value of the home was determined to be...

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
consultation
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000
734-237-6482
734-366-4405