Help!!! I am purchasing a home FSBO in Michigan.

[Jenny Stallings]

I am buying a single family home in Oakland County Michigan as a FSBO. I don't have a buyer's agent representing me. The owner is presented by a family-member that is a broker.

I did my own comparable market analysis and feel comfortable with the price and the terms. It is a cash deal but only 1% EMD (name on check to the seller's broker) and they are allowing an inspection period

However, someone mentioned that I should not use a title company that the owner selected; that didn’t make any sense to me.

Please advise if there are any potentials scams or anything else that I should lookout for. Again, the purchase price is not above market and we like the home.

[Scott Matthew C.]

Jenny Stallings

- Did the broker provide you a disclosure “Real Estate Agency Disclosure Form” by law he/she is required to disclose who he/she is representing.

- Have you been given the disclosures (Sellers and Lead)? This is required by law.

- Did the broker indicate his relationship to the sellers in the purchase agreement? This is required by law.

- EMD is NOT required by law. There is NO law for requiring an EMD in the state of Michigan.

- EMD, the broker has two business days to deposit the EMD check. This is required by law!Confirm it by requesting an ACTUAL receipt of deposit from his/her escrow department/escrow agent.... NOT from the real estate broker.

- Contact the Title company:: Is there a contingency in the purchase agreement that you agreed to use the seller(s) title company? I would advise for you to get your own title company. Have them provide an “Abstract Title”. The title company of your choice will have their own attorney to help you confirm the title is free and clear.

- Title Company:: In the purchase agreement the seller should be required to provide an owners title policy insurance. Have you also received from the broker a pre-title commitment for your review?

- Withdraw your offer within your inspection time frame if you aren’t satisfied with your inspection.

Best of luck!