What you know, what you don't know, and why the difference matters.
When selling a home in Michigan, one of the first documents you'll likely complete is the Seller's Disclosure Statement.
This document helps buyers understand the property's condition before purchasing. But what exactly are sellers required to disclose?
What Is a Seller's Disclosure Statement?
Michigan's Seller Disclosure Act generally requires sellers of residential properties containing one to four dwelling units to provide a written statement about the property's known condition.
The statement covers items such as:
Roof leaks and basement water problems
Plumbing, electrical, heating, and cooling systems
Wells, septic systems, and sump pumps
Structural problems and previous damage
Environmental concerns
Easements, encroachments, and certain property restrictions
Repairs or alterations made without required permits
The complete requirements and form are available in Michigan's Seller Disclosure Act.
What If the Seller Doesn't Know?
Michigan's disclosure form includes an "Unknown" option.
For example, if you purchased a home years ago and don't know the roof's age, you shouldn't invent an answer.
However, unknown doesn't mean you can ignore a problem you already know exists.
The form asks sellers to answer all questions honestly based on their knowledge.
Does Disclosing a Problem Mean You Must Fix It?
No.
Suppose a seller reports that the basement occasionally gets water during heavy rain.
That disclosure doesn't automatically require the seller to waterproof the basement.
The buyer may accept the condition, request repairs, negotiate the price, or exercise an applicable inspection contingency.
The purchase agreement determines what the parties ultimately agree to.
Are Any Sellers Exempt?
Yes. Michigan law provides several exemptions, including certain estate transfers, qualifying family transfers, and some sales of newly constructed homes that have never been occupied.
An inherited property isn't automatically exempt simply because it was inherited. The type of transfer and who is selling matter.
When Must Buyers Receive It?
Generally, the disclosure must be delivered before the seller signs a binding purchase agreement.
If the required disclosure or an amendment is delivered afterward, Michigan law provides certain buyer termination rights, including deadlines of 72 hours for personal delivery or 120 hours for registered mail delivery.
Those rights are subject to the statute's conditions and expire upon transfer of the property.
Does a Disclosure Replace a Home Inspection?
Absolutely not.
A seller may be unaware of hidden defects, and the disclosure is not a warranty.
Buyers should still consider professional inspections and review any concerns before their inspection deadlines.
For more information, read my Home Inspection Basics guide in Real Estate Guides.
What Should Sellers Do Before Listing?
Complete the statement carefully, explain known issues, and gather any relevant repair documentation.
If a condition changes before closing, promptly disclose the change to the buyer.
The goal isn't to present a perfect house. It's to give buyers accurate information so both parties can make informed decisions.
Thinking about selling your Michigan home?
Visit my Sell a Home page to learn more about preparing your property and understanding the selling process.
This article provides general information about Michigan disclosure requirements, not legal advice. Specific situations may require guidance from a Michigan real estate attorney.