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How long do home buyers in Michigan have to sue if the sellers commit fraud?

July 10, 2018

On July 3, 2018, the Michigan Court of Appeals ruled once again that home buyers may have up to six years to pursue fraud-related claims against sellers.  See Yu v. Migliazzo, 2018 WL 3244140 (Mich App 2018); see also Bowman v. Greene, 2013 WL 5925995 (Mich App 2013).

 

The court rejected the argument that the true nature of the buyers' claims concerned an injury to property and, thus, a three-year statute of limitation applied.  The court did not discuss the specifics of the alleged fraud, but typically it involves a response or omission contained in a Seller's Disclosure Statement

 

In addition to case law, parties should review their purchase agreements, which may contain a shorter deadline to sue (e.g., one year).

 

The above is for informational purposes only.  The appropriate or best strategy will depend on the facts of each deal/case.  Thus, readers should not act upon this information without seeking professional advice.

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