PART 8. TAXES AND ASSESSMENTS

R 338.3341. Developers' duties.

Rule 141. (1) In a transaction for the sale of land under the act in which taxes are to be paid by either party, a developer shall:

(a) Certify that there are no taxes, other than current taxes, owing on the property involved at the date of filing the statement of record, a consolidated statement of record, or an amendment to either.

(b) Provide a form of escrow accounting satisfactory to the department in accord with (2) if part of the purchasers' funds paid in or payable by the terms of the instrument disposing of the land is to be used for payment of taxes. (2) In order that a purchaser will receive the interest in lands contracted for, if the developer apportions real property taxes prospectively and requires a purchaser to pay such taxes in a lump sum or on a periodic basis, the developer shall place in the escrow account 100% of the payments, with which to pay taxes when due.

R 338.3345. Purchasers' responsibilities.

Rule 145. (1) A purchaser is not responsible for payment of taxes or assessments levied before the effective date of his agreement with the developer or his agent, unless such taxes are prospective in nature, if so, they may be prorated and the instruments evidencing the sale or disposition of an interest in a subdivision shall so state.

(2) A purchaser shall not be assessed a service or collection fee or be required to pay a consideration for the assessment or allocation of taxes on the land involved in the transaction, in excess of that charged by a unit of government.

PART 15. DECLARATORY RULINGS, INVESTIGATIONS, AND HEARINGS

R 338.3451. Declaratory rulings.

Rule 251. (1) The department, on request of an interested person, may iss:" a declaratory ruling as to the applicability to an actual statement of facts of the act or a rule herein when he submits to the department the following:

(a) A clear and concise statement of the actual statement of facts. (b) If the interested person desires, a brief or other reference to legal authorities upon which he relies for determination of the applicability of the act or a rule to the statement of facts.

(2) The department, if it determines it will issue a declaratory ruling, shall furnish the person with a statement to that effect and set forth the time in which the department will issue the ruling.

(3) A ruling shall repeat the actual statement of facts, the legal authority on which the department relies for its ruling, if any, and the ruling it makes. A ruling once issued is binding on the department and the department may not retroactively change the ruling, but nothing in this rule shall prohibit the department from prospectively changing a ruling.

R 338.3455. Officers to administer oaths and affirmations.

Rule 255. The following officers of the department are designated to administer caths and affirmations during any investigation or procending under the act:

(a) Director of the department.

(b) Director, land sales division.

(c) Assistant director, land sales division.

(c) Chief investigator, land s-les division.

(e) Presiding officer of a hearin.

R 338.3456. Officers to issue subpoenas and institute discovery.

Rule 256. (1) The following officers of the department are designated to

subpoena witnesses, issue subpoenas duces tecum, and institute discovery

proceedings, in accordance with Michigan general court rules in any investigation or proceeding under the act:

(a) Director of the department.

(b) Director, land sales division.

(c) Assistant director, land sales division.

(2) Nothing in this rule shall be construed to abrogate the authority of a presiding officer prescribed in the administrative procedures act of 1969, as amended.

R 338.3461. Rejections by department.

Rule 261. (1) The department may reject an application for advertising approval or a statement of record, including a property report, for a subdivision if the developer fails to comply with the act or these rules or the department's requirements thereunder. Before entering an order of rejection, the department shall notify the developer by certified mail of its decision in a notice of intent to reject for deficiencies. This notice shall toll the running of the 60 day period if the developer shall undertake to correct the deficiencies. (2) The final decision shall be by further order.

(3) An order of rejection shall automatically be entered after 15 days following the date of mailing of the notice of intent to reject unless the developer corrects the deficiencies to the department's satisfaction within that time or the department extends the time to correct to a day certain.

R 338.3463. Hearings; notices and conduct.

Rule 263. (1) Parties shall be notified of a hearing by certified mail at their last known address, which shall be sent not less than 20 days before the

date of the hearing.

(2) A hearing shall be open to the public and shall be conducted in accordance with the administrative procedures act of 1969, being act 306 of the Public Acts of 1969, as amended, and sections 24.201 to 24.315 of the Michigan Compiled Laws.

(3) A hearing shall be conducted by a presiding officer who shall be appointed by the director of the land sales division of the department. decision of such director shall be the final decision.

The

R 338.3464. Hearings; appearances, pleadings.

Rule 264. (1) A party may appear at a hearing in person or by a duly authorized representative or attorney.

(2) If a party fails to appear after proper service of notice, the director of the land sales division, if no adjournment is granted, may proceed with the hearing and make his decision in the absence of such parties.

(3) An adjournment or continuance may be granted by the director of the land sales division or the person he designates for good cause shown by a party to the hearing or on his own motion or after stipulation and agreement between all parties, but a request for adjournment shall be made in writing not less than 5 days before the date set for the hearing.

(4) A party may file a written answer to charges or claims made or may present an oral statement at the time of the hearing. Copies of written pleadings and briefs shall be served on the director of the land sales vision and all other parties not less than 5 days before the date set for tearing.

R 338.3465. Hearings; evidence.

Rule 265. (1) Testimony shall be under oath or affirmation.

(2) A deposition shall be taken only on order of the director of the land sales division upon a showing that it is impracticable or impossible to obtain

necessary evidence otherwise. It shall be taken in accordance with provisions for taking depositions in civil cases, as set forth in the Michigan general

court rules or other applicable court rules.

R 338.3466. Decisions, orders, and rehearings.

Rule 266. (1) Within a reasonable time after completion of a hearing, the director of the land sales division shall send by certified mail to the last known address of the parties the decision and orders which shall include findings of fact and conclusions of law.

(2) A rehearing may be granted by said director upon application in writing by a party to the hearing or upon his own motion in accordance with the administrative procedures act of 1969, as amended. A rehearing shall be noticed and conducted in the same manner as an original hearing.