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HB 6173

Property: land sales; seller disclosure statement; revise to reflect septic tank inspection. Amends sec. 7 of 1993 PA 92 (MCL 565.957).

2023-2024 Regular Session Introduced by Phil Skaggs

Requires the seller's disclosure form for property transfers to include the most recent septic tank inspection report, attaching it to inform buyers and their agents.

notice given to discharge committee
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Bill Summary · HB 6173

Summary of House Bill 6173 (Michigan)

Overview

HB 6173 would amend the Seller Disclosure Act (Sec. 7 of 1993 PA 92, MCL 565.957) to require that the seller’s disclosure form used in property transfers include the most recent septic tank inspection report. The bill was introduced by Rep. Phil Skaggs on November 26, 2024 and is currently at a late-stage committee status with a notice to the discharge committee. The House Fiscal Agency analysis notes no anticipated fiscal impact on state or local governments.

Key sponsor and committee
- Sponsor: Rep. Phil Skaggs
- Committee: Natural Resources, Environment, Tourism and Outdoor Recreation
- Status: Notice given to discharge committee; later actions show referral to Joint Committee on Judiciary (REF. TO JOINT COMM. ON Judiciary) as of January 22, 2025

What the bill would change

  • Substantive change: The seller’s disclosure form, required when selling or transferring property, must include the most recent copy of the property’s septic tank inspection report when the disclosure is provided by the transferor or their agent to the prospective buyer or buyer’s agent.
  • Transition rule: If a disclosure form was printed before the bill’s effective date and complied with the act at that time, it may continue to be used and be considered in compliance for up to 90 days after the bill takes effect.

How it would work in practice

  • A seller (or seller’s agent) must attach or provide the latest septic tank inspection report to the seller’s disclosure form at the time the property information is disclosed to a potential buyer.
  • The form itself remains the standard “Seller’s Disclosure Statement,” but the septic-related item must reflect the most recent inspection report.
  • The existing disclosure framework remains non-warranty in nature; it is intended to inform, not to substitute for inspections or warranties.

Who is affected

  • Primary: Sellers and seller’s agents involved in real estate transfers.
  • Secondary: Buyers and buyers’ agents who rely on the disclosure information; septic inspectors who generate the inspection reports.
  • Broader: Real estate professionals, lenders, and local government units overseeing real estate transfers.

Timeline and procedural context

  • 2024-11-26: Introduced by Rep. Skaggs; referred to Committee on Natural Resources, Environment, Tourism and Outdoor Recreation.
  • 2024-12-11: Notice given to discharge committee.
  • 2025-01-22: Referred to Joint Committee on Judiciary (REF. TO JOINT COMM. ON Judiciary).
  • Documented status: “notice given to discharge committee” (no final enactment noted in the provided material).

Fiscal impact

  • Analysis indicates no fiscal impact on state or local government.

For more details, see the Legislative Analysis and the bill’s language in the Michigan House records.

Compiled from official sources — confirm details with the bill’s official record.

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