Can an ACR fix this?
An affidavit of compliance responsibility (ACR) is required by the city of Detroit and the Michigan cities of Mount Clemens, Grand Rapids and Birmingham when a home buyer agrees before buying a home to repair it by a certain deadline. This document, usually signed by a potential home buyer after a pre-sale home inspection, states that the buyer has received a list of items that need repair and agrees to makes the necessary repairs in order to comply with applicable codes. An ACR does not stop someone from purchasing a home.
When an ACR is Required
Before every one- to four-unit home in Detroit or these other cities is sold, the city requires an inspection. If an inspector decides that a home has structural, electrical or plumbing problems, the owner is given notice that repairs are needed and is asked to make repairs before closing. In most cases, the potential buyer receives the list from the owner and agrees to make the repairs and have the property reinspected before closing on the home.
When an ACR is Not Necessary
After a pre-sale home inspection, the seller sometimes accepts the responsibility for city-required home repairs. In this case, once repairs are complete and the home is reinspected and found to be in compliance with city requirements, the city then issues the seller a certificate of occupancy to give to the buyer at closing.
Time Frame
By signing an ACR, a potential buyer essentially agrees to make the necessary listed repairs within six months of signing if the seller hasn't already done so.
Home Repair Examples Requiring an ACR
Examples of repairs that require an ACR to be signed include peeling paint, warped ceilings, leaning banisters, missing floor tiles, inadequate roofing, non-permitted or dangerous electrical wiring, insufficient or poor plumbing, evidence of leaking and inadequate heating systems.
In the Event ACR Repairs Are Not Made
If an affidavit of compliance responsibility is breached and repairs cannot be made within six months of signing, the new homeowner would not receive a certificate of occupancy and could not legally move into the property. A real estate agent or attorney can help a home buyer apply for an extension of the deadline to make the fixes.
Tags: home buyer, affidavit compliance, affidavit compliance responsibility, agrees make, before closing
