The bill amends the Occupational Code of Michigan by updating sections 2501, 2502b, 2503, and 2512e, and introduces a new section 2517a. It includes definitions for terms such as "assignment fee," "assignment of a real estate purchase agreement," "equitable interest," and "real estate wholesaling." A key provision clarifies that individuals with only an equitable interest in residential real property who engage in advertising or marketing are not deemed to be selling that property. Additionally, the bill requires that advertisements for real estate include the broker's name and contact information, and outlines the responsibilities of real estate salespersons and associate brokers regarding advertising practices.

Moreover, the bill establishes new requirements for individuals involved in real estate sales, mandating that those who sell more than five properties annually or dedicate significant time to real estate sales must obtain a broker's license. It emphasizes transparency by requiring written disclosure to potential buyers when a licensee is selling property they own or have an interest in. The bill also mandates that advertisements by licensees holding only an equitable interest must clearly disclose this status. Furthermore, it requires buyers who are assignors of a real estate purchase agreement to provide sellers with a written disclosure that includes their status, intention not to occupy the property, expected resale price or assignment fee, and a statement regarding the seller's cancellation rights. The department is tasked with creating necessary forms for this disclosure.

Statutes affected:
House Introduced Bill: 339.2501