Michigan - Public Act 96 Provides Significant Tax Relief for Sellers; and more

A big thank you to  Suzie Reinbold for informing us, and letting me share tis on active rain:

Governor Signs Important REALTOR? legislation:

 Public Act 96 Provides Significant Tax Relief for Sellers;
Agency Responsibility Act now Public Act 90 and 91

Yesterday, Governor Granholm signed 3 significant pieces of REALTOR? supported legislation. First, legislation enabling home sellers to retain 2 principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. The signing of this legislation is a huge step in aiding struggling sellers who have had homes on the market for over a year and have lost their principal residence status on that property.

House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms) enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner?s principal residence if the following circumstances are met:

• the property is not occupied,
• the property is for sale
• the property is not leased or available for lease
• the property is not used for any business or commercial purpose

The Michigan Association of REALTORS? (MAR) was active in pointing out to lawmakers that the struggling economy in Michigan has forced several home sellers to relocate to other areas of the state, in some instances continuing to market a home that they have not lived in for over a year. As a result, the home was no longer treated as a principle residence and the homeowner lost the principal residence exemption. Retention of an existing homestead credit for an unoccupied home that is currently for sale would offer relief to sellers who have had to relocate for whatever reason. The MAR is grateful to Representative Gaffney for being receptive and following through on this very important piece of property tax relief.

Secondly, the Agency Responsibility Act was signed into law. The passage of the legislation, now Public Act 90 and 91 of 2008, is a huge accomplishment for the MAR, and its success has been years in the making.

The ARA legislation is a product of a MAR Public Policy Task Force assigned with the task to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model clearly defines those basic duties and services owed under an exclusive agency agreement and provides for a uniform state wide disclosure form when the consumer and broker choose to waive any of those services. The implementation date for a revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.

Updated forms are now availble:   click here to down load

To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008.

Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate) introduced the two-bill bipartisan package on behalf of the real estate community. The MAR Public Policy team met with legislative leaders on both sides of the aisle to stress the importance of passing the bills in order to promote homeownership while keeping industry standards high.

These top industry priorities could not have been passed without your investment in RPAC. RPAC is the only grassroots and issues mobilizing force that exists to protect and promote the tradition of home ownership and real estate investment.

By investing in RPAC, you are able to support REALTOR?-friendly legislators who believe in our industry and believe in protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business.

With RPAC, REALTORS? from across the state have the chance to come together and become active in the nation's most powerful and effective lobbying machine.

By becoming part of RPAC, you'll not only have the power to make a change in the way you do business, but you'll also become part of a statewide network?more than 27,000 members strong?that will link you with like-minded REALTORS? who share your concerns and issues. Thank you for your continued investment in RPAC!