Michigan House Bill HB5366

Michigan 2025-2026 Regular Session

• Introduced: 12/16/25
• Refer: 12/16/25

Caption

Occupations: real estate; real estate wholesaling and mandatory disclosures; provide for. Amends secs. 2501, 2502b, 2503 & 2512e of 1980 PA 299 (MCL 339.2501 et seq.) & adds sec. 2517a.

Impact

The bill imposes additional responsibilities on those involved in real estate transactions, particularly in the realm of wholesaling. By requiring assignors to disclose their intent not to occupy the property, the expected assignment fee, and the seller's right to cancel the agreement within five business days, the bill aims to protect sellers from potential exploitation in a sector that has seen rapid growth and varying practices. It hopes to create a more equitable market for both investors and consumers.

Summary

House Bill 5366 amends the Occupational Code to enhance regulations surrounding real estate transactions in Michigan. A significant focus of the bill is on the assignment of real estate purchase agreements. It introduces a new section (2517a) that mandates that a buyer, acting as an assignor of a real estate purchase agreement, must provide specific disclosures to the seller of a residential property. These disclosures are designed to enhance transparency in real estate wholesaling, where investors often assign contracts for properties rather than purchasing them outright.

Contention

Concerns may arise regarding the potential for increased regulatory burdens on real estate professionals, particularly in how they conduct business and navigate transactions. While proponents argue that these changes protect consumers and bring greater clarity to real estate dealings, critics may suggest that the additional regulations could stifle innovation and make real estate transactions more cumbersome. The precise balance between consumer protection and industry flexibility will likely be a point of contention as the bill progresses through the legislative process.