I am selling a house in Michigan. I just discovered the residential real estate purchase agreement a buyer 's agent sent us (which we signed)

Susan
Home Seller
48144

says under "general provisions" (fine print) this agreement shall be governed by the laws of the state of Ohio. Is this form legally binding in the state of Michigan, or can I get out of this contract because their real estate agent gave us the wrong form?

Answers (5)
Michael E Thomp...
Broker
48182

Susan,

Obviously, I work and live in Lambertville as well. Yes many of the realtors of the area are licensed in both states. I have a legal background as well, but don't practice here in Michigan. Your question above says three things so I'm not sure exactly what's going on...you have your house listed for sale (I presume its not this listing agreement that you have questions about), you signed a buyers agency agreement with a realtor (is this the form you are wondering about) or, did you put an offer on another house, and that purchase agreement is the one you're asking about?

As a general matter the laws of the state where real estate is located are going to control matters related to the property located in that state---but if it's a buyer's agency agreement that's a contract question--which is a bit harder to answer and Ohio law could apply.

As a general rule, most of these standard real estate service form agreements can be cancelled with written notice from a buyer or a seller--many include that statement in the boilerplate language (fine print)--many don't. A purchase agreement to buy a property is slightly different.

Tue Sep 8 2009, 05:12
James Gordon PBD...
Agent
Butler County, OH

Susan I would have the agent write an addendum as Katherine suggested. The adent may have grabbed a wrong file and used an Ohio form instead of a Michigan one. Lambertville is so close to Ohio that when my grandparents lived in Toledo the closest store to them was the IGA in Lambertville!

Web Reference: http://www.Find1Home.com
Tue Sep 8 2009, 01:42
Katherine Ptasi...
Broker
Trenton, MI

I live near the Ohio border in Michigan and know of Realtors who are licensed in both states. My guess is that the real estate agent is licensed for both Michigan and Ohio and probably does most of their business in Ohio, thus the Ohio form. I would advise talking with an attorney to get the best advice. If it were me, I would have my Realtor write up an Ammendment to the contract to purchase to say that the laws and general provisions will be governed by the state of Michigan. I hope this helped...

Mon Sep 7 2009, 20:32
Derek Bauer, As...
Agent
West Bloomfield, MI

Wow ... I don't even know what to say about that one. This is DEFINITELY a question for a real estate and/or contract attorney. While there are similarities in the law between the states, certainly not everything is the same.

Please keep us posted on this one...

Mon Sep 7 2009, 18:57
Maureen Francis,...
Broker
Birmingham, MI
FIRST ANSWER

I am not a lawyer and there a not likely to be any lawyers in this forum. You would need legal counsel to answer this question definitively.

My *guess* is that it is binding. A buyer and a seller should be free to determine which state's laws govern a contract if they mutually agree to those conditions (like you did). Check with you agent.

Mon Sep 7 2009, 18:55

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