Below, please find a list of legislation the MAR is monitoring that may affect the real estate industry. NOTE: To access any of these bills, please visit:
www.michiganlegislature.org and type in the bill number desired. At the site, you can view the current bill status, sponsors, and any analysis on the legislation. Call the MAR Public Policy Department at 800.454.7842 for questions, comments and to learn more about MAR's position on current legislation.
Learn how a bill becomes law.Statewide Taxation Reform - The legislature recently passed historic legislation containing much needed structural tax reforms, along with the elimination of the Michigan Business Tax (MBT) and its burdensome 22% surcharge. The passage of this legislation creates a positive business environment in this state to attract and retain jobs.
In passing these tax reforms, Michigan will see increased economic growth and job creation. Our industry fully supports providing a structure to make Michigan a more competitive state for attracting and retaining jobs. With tax reforms in place, Michigan will once again be "open for business".
Prohibition of Private Transfer Fees – Public Act 34 and 35 of 2011 providing a pre-emptive strike on practices that have sprung up in other states where a private party collects a fee every time a property is sold in a development is now law. These fees are an excessive restraint on the transferability of property and also prey upon homebuyers.
Wall License Elimination – New law,
Public Act 33 of 2011 eliminates the requirement for Wall Licenses. This new law is the next step in the progression of licensing standards and keeping up with today’s technology. Pocket ID cards are available for all new agents that have licensing information on the card. It is our hope that this change is the first step in utilizing technology to streamline licensing requirements for all REALTORS®.
Non-Recourse Loan Legislation – Public Act 67 of 2012 sponsored by Senator Arlan Meekhof (R-Olive Township), creates the "Nonrecourse Mortgage Loan Act" to do the following:
-- Prohibit a post closing solvency covenant from being used as a non-recourse carve-out or as a basis for any claim against a borrower, guarantor, or other surety on a nonrecourse loan.
-- Specify that a noncompliant provision in loan documents would be invalid.
-- Specify that the Act would not prohibit a loan secured by a mortgage from being fully recourse to the borrower or guarantor, if the loan documents did not contain nonrecourse provisions.
-- Include statements of legislative recognition and intent.
The Act would apply to the interpretation and enforcement of all nonrecourse loans in
existence on its effective date or entered into on or after that date.
AMC Regulation (HB 4975 and 5271) – Legislation providing a regulatory structure to Appraisal Management Companies (AMC’s) have passed the House. House Bills
4975 and
5271, introduced by Realtor® member and State Representative Margaret O’Brien(R-Portage) are now on their way to the Senate for consideration.
In order to comply with the
Dodd-Frank Wall Street Reform and Consumer Protection Act, Appraisal Management Companies (AMCs) would have to satisfy 4 minimum requirements, which are contained in the House-supported legislation:
1) Register with and be subject to supervision by a State-appraiser certifying and licensing agency in each State in which such company operates;
2) Verify that only licensed or certified appraisers are used for federally related transactions;
3) Require that appraisals coordinated by an appraisal management company comply with the Uniform Standards of Professional Appraisal Practice
4) Require that appraisals are conducted independently and free from inappropriate influence and coercion pursuant to the appraisal independence standards established under section 129E of the Truth in Lending Act.
Property Tax on New Construction (
HB 4134)
- The bill would treat inventory or spec homes as unimproved property for the purposes of taxation.
The Michigan Association of Home Builders sees this as a cost savings and jobs issue that would allow builders to create product and carry it at a lower tax level, similar to the way auto dealers are not taxed on unsold inventory. The bill has passed the House, and is now in Senate Finance committee awaiting a hearing.
Our association’s political strength lies in the strength of RPAC. It provides a unified voice of over 22,000 members statewide, and over 1 million nationally. While RPAC has been recently successful in advancing REALTOR® interests, there are new issues and ideas being introduced constantly that may hinder the way we do business. RPAC is the real estate industry's insurance to promote and protect the real estate profession for all MAR members.