What to Disclose When Selling a Home in Michigan

Michigan's Seller Disclosure Act requires you to give the buyer a completed Seller's Disclosure Statement on the standard form set out in the statute. It walks through the condition of your home's major systems and components: roof, basement, plumbing, electrical, heating and cooling, appliances that stay, the well and septic, and known issues like water intrusion, structural problems, or environmental hazards. The disclosure is based on what you actually know, not on a guess about what an inspector might find. Having spent years in title and abstracting work, I help my sellers fill out this form carefully and honestly, because a thoughtful disclosure protects you far more than a vague one ever will.

Under the act, the written Seller's Disclosure Statement must reach the buyer before you sign a binding purchase agreement with them. In practice, that means it should be ready and delivered up front, not as an afterthought. The statute allows delivery by personal delivery, fax, or registered mail. If a buyer somehow receives it late, the law gives them a window to terminate, which is exactly the kind of avoidable hiccup I want my sellers to sidestep. I make sure the disclosure is complete and in the buyer's hands early, so your transaction stays on solid ground and nobody can later claim they were kept in the dark about the home's condition.

A material defect is a condition that could meaningfully affect the property's value or that a reasonable buyer would want to know about, and the key word is known. If you're aware of a leaking roof, a cracked foundation, a sump pump that runs constantly, recurring basement water, a failing septic field, or past flood or fire damage, those belong on the disclosure. You aren't required to hire inspectors or test for things you don't know about, and you're not on the hook for hidden problems outside your personal knowledge. With my appraisal background, I'm good at helping sellers recognize which conditions are genuinely material, so nothing important gets overlooked.

Yes. On top of Michigan's requirements, a separate federal rule applies to most homes built before 1978. Under the federal lead-based paint disclosure rule, you must disclose any known lead-based paint or lead hazards, hand over any related records or reports you have, give the buyer the EPA pamphlet "Protect Your Family From Lead in Your Home," and include the required lead warning language in the contract. Buyers also get a 10-day opportunity to have the home tested for lead, though they can waive it. Sellers keep signed copies for several years. Many of my lakeshore listings are older homes, so this is a step I never let slip through the cracks.

Some are. The act lists specific exemptions where the standard disclosure statement isn't required, including transfers ordered by a court, foreclosure sales and transfers to a lender after default, transfers by certain non-occupant fiduciaries handling an estate or trust, transfers between co-owners, transfers among close family members like spouses, parents, or children, transfers tied to a divorce decree, transfers to or from a government entity, and the first sale of brand-new construction that has never been lived in. Whether your situation truly qualifies can be nuanced, so I'd recommend confirming with a real estate attorney. Even when an exemption applies, being transparent about known issues is still smart practice.

It's a real risk worth taking seriously. If you intentionally conceal or fail to disclose a known material defect, you can be exposed to liability for the buyer's resulting damages, and Michigan courts have shown they'll hold sellers accountable for hiding known problems. A failed disclosure can unwind a deal or land you in a costly dispute long after closing. The disclosure form itself isn't a warranty, and it's based on your honest knowledge, but that's precisely why candor is your best protection. For questions about your specific exposure, talk with a real estate attorney. My job is to help you disclose thoroughly up front so a hidden surprise never becomes a lawsuit later.

This is one of the biggest misconceptions I correct. Selling "as-is" signals that you won't be making repairs, but it does not erase your duty to disclose known material defects. The same is true if a buyer waives their inspection. You still have to complete the Seller's Disclosure Statement honestly and reveal the problems you know about. An "as-is" clause protects you from being asked to fix things; it doesn't give you license to stay silent about a defect you're aware of. If you have an unusual situation, a real estate attorney can advise you, but the safe rule is simple: as-is or not, disclose what you know.

The act asks you to report the information you actually have and to use ordinary care when you pass along facts that come from outside sources, like a contractor's notes or a public record. You're generally not held liable for an error made in good faith about something that wasn't within your personal knowledge, provided you exercised reasonable care. You aren't expected to be an engineer or to guarantee the home's future performance. What the law does not forgive is hiding what you genuinely know. With my title and abstracting experience, I help sellers document conditions accurately so the form reflects honest knowledge, which is exactly what the statute rewards.

I treat the disclosure as part of your marketing, not a hurdle. We sit down early and go through the home system by system so the Seller's Disclosure Statement is complete, accurate, and delivered to buyers before they sign. Where it makes sense, I'll suggest a pre-listing inspection or gathering past repair records, so disclosed issues come paired with documentation that builds buyer confidence rather than fear. For anything legal or tax-related, I'll point you to a qualified attorney or CPA. My appraisal and title background means I see condition and value the way a careful buyer's lender will, and that foresight keeps deals from falling apart at the inspection or the closing table.