Michigan Seller Disclosure Requirements: What Home Sellers Must Reveal

Michigan Seller Disclosure Requirements: What Home Sellers Must Reveal

Michigan law requires home sellers to complete a written disclosure statement before closing. The Michigan Seller Disclosure Act (MCL 565.951–966) mandates a six-page form covering the property’s known defects, environmental hazards, and mechanical systems. Failing to disclose known problems can result in lawsuits, rescinded sales, and financial liability years after closing.

This guide explains what sellers must disclose, what’s exempt, and what buyers should watch for.

What the Michigan Seller Disclosure Act Requires

The seller must provide the buyer with a completed Seller’s Disclosure Statement before the purchase agreement is signed — or within 72 hours after acceptance. The buyer has the right to terminate the agreement within 72 hours of receiving the disclosure if new information changes their decision.

The disclosure is based on the seller’s actual knowledge. Sellers aren’t required to hire inspectors or conduct testing. But they cannot hide problems they know about, and “I didn’t look” isn’t a defense if the problem was obvious.

Section-by-Section Walkthrough of the Disclosure Form

Michigan’s Seller Disclosure Statement runs six pages and covers specific categories. Here’s what each section asks and what sellers commonly get wrong:

Section 1: Property Information

Basic details — address, legal description, year built, type of construction. This section also asks about the property’s age, which matters because homes built before 1978 trigger federal lead paint disclosure requirements. Sellers often leave “year built” blank or guess. The county register of deeds or property tax record has the actual year.

Section 2: Structural Systems

Covers the foundation, basement, walls, ceilings, floors, roof, windows, doors, and chimney. Each item has three checkboxes: “yes” (there’s a known issue), “no” (no known issue), and “unknown.” The most common dispute area is basement water. Sellers who’ve had even one water event must check “yes” and explain. Painting over water stains before listing does not change the disclosure obligation — if you knew about the water, you must disclose it regardless of cosmetic repairs.

Section 3: Mechanical Systems

Heating, air conditioning, plumbing, electrical, water heater, sump pump, and appliances. The form asks for the age and condition of each system. Sellers should list the actual age of the furnace and AC unit (usually stamped on the equipment nameplate) rather than guessing. Buyers who later discover a furnace is 22 years old — not the “about 10 years” listed on the disclosure — have grounds for a claim.

Section 4: Water and Sewer

Water source (municipal or well), sewer type (municipal or septic), and known issues with either. For well water, sellers must disclose the most recent test results. For septic systems, the form asks about the last pumping date and any known failures. This section also covers lead service lines — a post-Flint addition that asks sellers whether the water service line is lead, copper, galvanized, or unknown.

Section 5: Environmental Hazards

Lead paint, asbestos, radon, mold, underground storage tanks, contaminated soil, and methamphetamine production. Sellers must disclose any test results they have — even if the results were favorable. If you tested for radon and the result was 2.0 pCi/L (below the EPA action level), you still must report that test was conducted and share the result.

Section 6: Legal and Other Issues

Easements, boundary disputes, zoning violations, HOA obligations, special assessments, pending litigation, and code violations. This is where shared driveway agreements, neighbor fence disputes, and pending road assessments get disclosed. Sellers who skip this section often face the most heated post-closing disputes because legal issues can cost buyers thousands to resolve.

Categories of Required Disclosure

Structural Components

Sellers must disclose known issues with:

• Foundation cracks, settling, or movement
• Basement water intrusion or flooding history
• Roof age, leaks, and repair history
• Walls, ceilings, and floors — sagging, cracking, moisture damage
• Windows and doors — broken seals, rot, operation problems
• Insulation type and known deficiencies
• Chimney condition and fireplace functionality

Michigan’s freeze-thaw cycles cause more foundation and basement issues than most states. Sellers who’ve had basement waterproofing, foundation repair, or structural work done must disclose it — including the company that did the work and any transferable warranty.

Mechanical Systems

The disclosure covers:

• Heating system type, age, and known problems
• Air conditioning system type, age, and condition
• Plumbing — including pipe material (lead, galvanized, copper, PEX)
• Electrical — panel type, age, known wiring issues, aluminum wiring
• Water heater age and condition
• Sump pump and drainage systems
• Appliances included in the sale and their working condition

Environmental Hazards

Michigan sellers must disclose:

• Lead-based paint: Federal law (not just Michigan) requires disclosure for homes built before 1978. Sellers must provide the EPA pamphlet “Protect Your Family From Lead in Your Home.”
• Asbestos: Known presence in insulation, floor tiles, siding, pipe wrap, or other materials
• Radon: Any known test results, even if levels were below the EPA action level of 4.0 pCi/L
• Mold: Known mold problems, history of mold remediation
• Underground storage tanks: Current or removed
• Contaminated soil or groundwater: Including proximity to known contamination sites
• Methamphetamine production: If the property was used to manufacture controlled substances

Water and Sewer

• Water source: municipal, well, or shared well
• Well test results (bacteria, nitrates, lead, arsenic)
• Sewer connection: municipal sewer, septic system, or other
• Septic system type, age, last pumping date, and any known issues
• Lead service line status — Michigan now requires disclosure of known lead service line connections
• Water quality complaints or testing history

Flooding and Water Issues

• Whether the property is in a FEMA flood zone
• History of flooding — interior or exterior
• Drainage problems on the property or from neighboring properties
• History of standing water in the yard, basement, or crawlspace
• Whether flood insurance is or was carried

Legal and Title Issues

• Known easements, shared driveways, or right-of-way issues
• Boundary disputes with neighbors
• Zoning violations or non-conforming use
• Pending or past litigation related to the property
• Homeowners association (HOA) obligations and fees
• Special assessments — current or pending
• Outstanding code violations

What Sellers Don’t Have to Disclose

Michigan’s disclosure law has specific exemptions. Sellers do NOT have to disclose:

• Whether a death occurred on the property (Michigan has no stigmatized property disclosure requirement)
• Whether the property was the site of a crime (except meth production)
• The HIV/AIDS status of any previous occupant
• Whether the property is near a registered sex offender
• Neighborhood demographics, school quality, or crime statistics

Transactions Exempt from Disclosure

The following sales do NOT require a seller disclosure:

• Court-ordered sales (foreclosures, estate probate, bankruptcy)
• Transfers between family members (spouses, parent to child)
• New construction (covered by building codes and warranty instead)
• Transfers by a fiduciary (trustee, guardian, conservator)
• Sales where the buyer waives the disclosure (not common, not recommended)

Bank-owned (REO) properties are the biggest exemption in practice. The bank never lived in the home and has no knowledge of its condition. Buyers purchasing bank-owned properties in Michigan must rely entirely on their own inspection.

“As-Is” Sales and What They Actually Mean

Selling a home “as-is” in Michigan does NOT eliminate the disclosure requirement. This is one of the most misunderstood concepts in Michigan real estate.

“As-is” means the seller won’t make repairs. It does NOT mean the seller can hide known defects. The Seller Disclosure Statement is still required in an as-is sale. The seller must still answer every question honestly based on their knowledge.

An as-is clause affects the negotiation dynamic — the buyer accepts the property’s current condition and typically cannot demand repairs after the inspection. But if the seller checked “no known issues” on the disclosure for a basement that floods every spring, the as-is clause offers no legal protection against a fraud claim.

The practical difference:

Bottom line: “as-is” shifts repair responsibility but does not waive disclosure obligations.

Common Michigan-Specific Disclosure Issues

Basement Water and Foundation Problems

Michigan’s clay soil and high water table mean basement moisture is extremely common. Sellers who’ve experienced any water intrusion — even a single event — must disclose it. Waterproofing company warranties and repair receipts should be shared with the buyer. Trying to hide basement water problems is the number one source of disclosure lawsuits in Michigan.

Lead Service Lines and Plumbing

Post-Flint, Michigan has expanded lead-related disclosure requirements. Sellers should disclose the material of their water service line (if known), any water testing results, and whether they’ve participated in a municipal lead line replacement program. Homes built before 1960 are most likely to have lead or galvanized service lines. See our plumbing cost guide for replacement information.

Radon

Michigan sits in EPA Zone 1 (high radon potential) across much of the southern Lower Peninsula. If the seller has ever tested for radon — even if results were low — they must disclose the results. If they’ve installed a radon mitigation system, they must disclose that too.

Unpermitted Work

Additions, finished basements, electrical upgrades, or plumbing work done without permits must be disclosed. Unpermitted work is common in Michigan, especially in older homes. It creates liability for the buyer — the municipality can require removal or retrofitting of unpermitted work, and insurance may not cover damage caused by unpermitted construction.

Common Disclosure Disputes and How They Play Out

Most disclosure disputes in Michigan follow predictable patterns. Here are the five most common and how they typically resolve:

What Happens If a Seller Doesn’t Disclose

If a seller knowingly conceals a material defect, the buyer can pursue legal action under the Michigan Seller Disclosure Act. Remedies include:

• Rescission: Canceling the sale entirely and returning the property
• Damages: The cost of repairing the undisclosed defect
• Consequential damages: Additional costs caused by the defect (temporary housing, damaged belongings)
• Attorney fees: Michigan courts may award attorney fees in disclosure fraud cases

The statute of limitations for disclosure claims in Michigan is 6 years from the date the buyer discovers (or should have discovered) the defect. This means sellers can face liability long after the closing.

Buyer Recourse: Steps to Take After Discovering an Undisclosed Defect

If you bought a Michigan home and later find a problem the seller hid, take these steps in order:

1. Document everything. Photograph the defect. Note when you discovered it and what triggered the discovery. Save any communications with the seller.
2. Get a professional assessment. Hire a licensed contractor or engineer to evaluate the defect and provide a written report with repair cost estimates.
3. Review the disclosure form. Compare what the seller checked on each relevant line item. “No” or “unknown” for a problem that clearly pre-dated the sale is your basis for a claim.
4. Gather supporting evidence. Permit records, neighbor statements, prior listing photos (which may show the defect before cosmetic repairs), insurance claim history (via CLUE reports), and contractor records from the seller’s prior repairs.
5. Send a demand letter. A written demand to the seller, ideally from an attorney, outlining the defect, the disclosure obligation, and the cost of repair. Many disputes settle at this stage.
6. File a lawsuit if needed. If the seller refuses to settle, file under the Michigan Seller Disclosure Act. Claims under $6,500 can go to small claims court. Larger claims go to circuit court. Attorney fees are recoverable if you prevail.

The strongest cases involve physical evidence that the seller actively concealed a defect — fresh paint over water stains, patching compound over foundation cracks, or a recently replaced sump pump that was never disclosed. Circumstantial evidence matters too: if the seller lived in the home for 10 years and the basement floods every spring, claiming “no known water issues” is not credible. A good inspection matters — read our guide on how to choose a home inspector in Michigan.

Tips for Buyers Reviewing Disclosures

• Read every line carefully. Sellers check “unknown” on many items, which is legally acceptable but should prompt follow-up questions.
• Cross-reference with the inspection. If the disclosure says “no water problems” but the inspector finds water stains in the basement, dig deeper.
• Ask for documentation. If the seller discloses past repairs (waterproofing, foundation, roof), request the invoices and warranty certificates.
• Check municipal records. Permit history, code violations, and special assessments are public record. Don’t rely on the seller’s memory alone.
• Get a sewer scope. Michigan disclosures ask about sewer problems, but many sellers genuinely don’t know their sewer line condition. A camera inspection ($200–$400) reveals the truth.

Before making an offer, use our closing cost calculator to estimate total purchase expenses. Review the home buying guide for step-by-step guidance on the Michigan purchase process.

Tips for Sellers Completing the Disclosure

• Be honest. Disclosing a known problem is far cheaper than a lawsuit.
• When in doubt, disclose. Over-disclosure carries zero legal risk. Under-disclosure creates liability.
• Don’t guess. If you don’t know the answer, check “unknown.” But don’t mark “unknown” for things you clearly know about.
• Document repairs. Attach receipts, warranties, and contractor contacts for any work done during your ownership.
• Complete it early. Having the disclosure ready before listing shows good faith and prevents delays during negotiations.
• Keep a copy. Store your completed disclosure with your closing documents. If a buyer contacts you years later with a claim, you need to show exactly what you disclosed and when.

Sellers should also review their potential proceeds using the selling guide and tax calculator to understand the financial side of the transaction.

Frequently Asked Questions

Is a seller disclosure legally required in Michigan?

Yes, with limited exceptions. The Michigan Seller Disclosure Act requires sellers of residential property (1–4 units) to provide a written disclosure statement to buyers. Exceptions include court-ordered sales, foreclosures, transfers between family members, and new construction. The disclosure must be provided before the purchase agreement is signed or within 72 hours after acceptance.

What if I discover a problem after closing that the seller didn’t disclose?

You may have a legal claim under the Michigan Seller Disclosure Act if the seller knew about the problem and deliberately concealed it. The statute of limitations is 6 years from discovery. Document the issue, get repair estimates, and consult a Michigan real estate attorney. Success depends on proving the seller had actual knowledge — hidden patches over water stains, painted-over cracks, and neighbor testimony about known problems can all serve as evidence.

Does the disclosure replace a home inspection?

Absolutely not. The disclosure covers only what the seller knows. Many defects — wiring issues, hidden water damage, roof problems, foundation cracks behind finished walls — may be unknown to the seller. A professional home inspection ($350–$600 in Michigan) is an independent evaluation that catches problems regardless of what the seller does or doesn’t know. Always get an inspection.

Can a buyer waive the seller disclosure in Michigan?

Yes, Michigan law allows buyers to waive the disclosure in writing. This sometimes happens in cash sales, investor purchases, or bank-owned transactions. It’s rarely advisable for owner-occupant buyers because it eliminates one layer of protection. Even with a waiver, sellers remain liable for fraud if they actively conceal known defects.

Do I have to disclose a past insurance claim on my Michigan home?

The seller disclosure form doesn’t specifically ask about insurance claims, but it asks about the conditions that prompted those claims — water damage, fire damage, foundation problems. If you filed a claim for basement flooding, you must disclose the flooding even if the insurance claim was settled. Buyers can also check a property’s claim history through a CLUE report ordered by the buyer’s insurance company.

Does selling “as-is” mean I don’t have to fill out the disclosure?

No. An as-is sale means the seller won’t make repairs, but the disclosure form is still required. Every question must still be answered honestly. The as-is designation affects the buyer’s ability to request repairs during negotiation — it does not remove the seller’s obligation to reveal known defects. Sellers who think “as-is” protects them from disclosure are making a legal mistake that can result in post-closing litigation.