Contracts
In Michigan, a seller who discovers a material defect after accepting an offer is ethically and legally required to:
AProceed to closing without disclosing the newly discovered defect
BDisclose the newly discovered defect to the buyer, even if the sale has already been agreed upon✓ Correct
CCancel the contract immediately
DOnly disclose if the defect costs more than $1,000 to repair
Explanation
If a Michigan seller discovers a new material defect after signing the purchase agreement, they are obligated to disclose it to the buyer. Failure to do so could constitute fraud or a violation of the Seller Disclosure Act, regardless of when the defect was discovered.
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