Michigan Home Seller Disclosure Requirements

Michigan has a comprehensive mandatory disclosure statute that applies to virtually every residential sale: the Michigan Seller Disclosure Act, passed in 1993 and codified at MCL 565.951 through 565.965. Sellers of residential property complete a standardized Seller Disclosure Statement, deliver it to the buyer before the buyer makes an offer, and face real liability if the answers turn out to be knowingly false. This page walks through what the form covers, the Michigan-specific conditions that generate the most disclosure problems, the 72-hour rescission window that catches sellers off guard, and what happens when disclosure goes wrong.

General information only, not legal advice. Michigan disclosure obligations are governed by the Seller Disclosure Act, MCL 565.951-565.965, and Michigan real estate license law. Work with a Michigan real estate attorney or licensed broker on any specific situation.

The Seller Disclosure Statement (the central requirement)

MCL 565.957 requires the seller of residential real property to deliver a completed Seller Disclosure Statement to the buyer before the buyer makes a written offer to purchase. The form is prescribed by the Michigan Seller Disclosure Act; sellers may not substitute their own document.

Each question on the form is answered Yes, No, or Not Applicable. Yes answers must be explained in the remarks. Sellers answer based on their actual knowledge of the property — they are not required to investigate conditions they are genuinely unaware of. The Act is explicit that sellers are not making a warranty about the property's condition; they are disclosing what they know.

The Seller Disclosure Statement covers these categories:

• General information: occupancy history, length of ownership, use as a rental.
• Water supply: public water or well; any known quality, pressure, or contamination issues.
• Sewer/waste disposal: public sewer, septic, or cesspool; any known malfunction or prior repairs.
• Roof: known leaks, age if known, repairs.
• Basement and crawl space: water intrusion, dampness, prior flooding, sump pump.
• Structural components: foundation, walls, floors, ceilings, and any additions or unpermitted work.
• Mechanical systems: heating, cooling, electrical, and plumbing; known defects or deferred maintenance.
• Mold: presence of known mold or mold remediation history.
• Wood-destroying insects: known infestation or prior treatment history.
• Environmental hazards: lead-based paint, asbestos, radon, underground storage tanks, contaminated soil or water.
• Flooding and drainage: prior flooding events, drainage problems, standing water.
• Other known conditions: easements, encroachments, deed restrictions, boundary disputes, pending litigation, HOA, and any other material condition not captured above.

Mold — a Michigan-specific concern

Michigan's housing stock skews older than the national average, particularly in Detroit, Flint, Grand Rapids, and the smaller cities throughout the lower peninsula. Older homes with aging plumbing, basement moisture issues, and deferred maintenance have elevated mold risk. The Seller Disclosure Statement has a dedicated mold section, and sellers who have had mold professionally remediated must disclose it — even if the remediation was successful and professionally certified.

Sellers who discover mold during pre-listing preparation should disclose it regardless of whether they plan to remediate before closing. The obligation runs from the date the seller has actual knowledge, not from the date of closing.

Water quality — heightened attention statewide

Michigan's water quality awareness has been heightened by the Flint water crisis and subsequent statewide scrutiny of lead service lines and water system conditions. The disclosure form asks sellers to disclose any known water quality, contamination, or supply issues.

Sellers on public water should disclose any knowledge of issues with the municipal supply that have affected the property, any past notices from the water utility, and whether the home has had any water quality testing. Sellers on well water must disclose known well conditions, contamination test results, and any known treatment systems. In communities where lead service line replacement programs have been underway, sellers should disclose whether the property's service line has been replaced or identified for replacement.

Carpenter ants and wood-destroying insects

The wood-destroying insect section on the Michigan form is particularly relevant statewide. Carpenter ants are one of the most common structural pest issues in Michigan — more uniformly distributed across the state than termites, which are concentrated more heavily in the southern lower peninsula. Sellers who have had carpenter ant treatment, whether by a pest control company or DIY, need to disclose it.

Termite history in southern Michigan counties (Wayne, Monroe, Lenawee, Berrien) similarly must be disclosed, including treatment and any structural repairs made afterward. Buyers purchasing homes in these counties routinely order wood-destroying insect inspections as part of their due diligence.

Basement flooding and drainage

Michigan's glacially deposited clay soils, high water table in many areas, and seasonal freeze-thaw cycles make basement water intrusion one of the most common and most litigated disclosure categories in the state. Sellers who have had any basement flooding, moisture seepage, sump pump failures, or interior drainage system work must disclose it fully.

"It dried out on its own" or "it only happened once" does not mean you don't have to disclose it. A single significant water intrusion event that the seller experienced is actual knowledge that must go on the form. Courts routinely find that minimizing or failing to describe the full history of basement water issues constitutes a material misrepresentation.

Delivery timing and the 72-hour rescission window

The disclosure must be delivered to the buyer before the buyer makes a written offer. In practice this means the form is typically provided with the listing materials or at the first showing.

If the seller fails to deliver the disclosure before the offer:

• The buyer has 72 hours after receiving the late disclosure to rescind the purchase agreement by delivering written notice to the seller.
• On timely rescission, the buyer's earnest money deposit is returned in full.
• Delivering the disclosure after the offer is not a way to cure the late delivery; it simply activates the buyer's exit option.

The 72-hour window catches sellers off guard when they assume the buyer will simply absorb the late disclosure and move on. Buyers who want out of a deal for any reason — whether or not the form reveals anything material — will use a late delivery as the contractual exit.

Federal lead-based paint disclosure

Federal law (42 USC 4852d) requires lead-based paint disclosure for homes built before 1978, separate from Michigan's state form. Michigan's older housing stock means a significant share of the state's residential inventory is subject to the federal requirement. Both parties must sign the lead disclosure, and the buyer receives a 10-day inspection period to test for lead paint unless waived in writing.

Given Michigan's history of lead exposure concerns, buyers of pre-1978 homes should be encouraged to conduct lead testing regardless of what the seller discloses, and sellers should be thorough in disclosing any past lead paint testing or abatement.

Michigan licensee disclosure obligations

Michigan real estate licensees have independent disclosure obligations under state license law, separate from the seller's Seller Disclosure Statement obligation. An agent representing a seller who has actual knowledge of a material defect is required to disclose it to the buyer regardless of whether the seller's form captures it. The agent's obligation does not depend on what the seller disclosed.

This creates two independent disclosure channels for buyers in Michigan — the seller's form and the agent's separate duty. Sellers cannot use an agent as a shield: if the agent learns of a problem during the listing process, it must be disclosed even if the seller resists.

HOA and condominium disclosure

Michigan condominium sales are governed by the Michigan Condominium Act (MCL 559.101 et seq.), which requires sellers to provide the buyer with the master deed, bylaws, rules and regulations, current budget, and any pending special assessments before closing. Buyers in Michigan condominiums have a statutory rescission period after receipt of the condo documents.

HOA single-family communities require disclosure of the association's governing documents, current assessment status, and any pending or recently approved special assessments. The Seller Disclosure Statement's "other known conditions" section should capture HOA membership, but the full governing document package is typically provided separately by the seller or the association's management company.

Exemptions from the Seller Disclosure Act

Several transfers are exempt from the MCL 565.951-565.965 disclosure requirement:

• Transfers pursuant to court order (probate, divorce, partition, bankruptcy).
• Transfers to a spouse or lineal descendant or ancestor.
• Transfers between co-owners.
• Foreclosure sales and transfers to lenders in lieu of foreclosure.
• Transfers by gift.
• First sales of newly constructed homes that have never been occupied as a residence (builder warranty obligations apply separately).
• Transfers from an estate where the personal representative or trustee never occupied the property as a personal residence.

Exemption from the statutory form requirement does not protect a seller who actively commits common-law fraud. Estate transfers in particular continue to generate Michigan litigation when personal representatives mark everything "Not Applicable" while having actual knowledge of material defects from the estate administration.

Consequences of non-disclosure or false answers

Michigan sellers who knowingly provide false information or fail to deliver the disclosure form face:

• Buyer's rescission right: if the form was not delivered before the buyer's offer, the buyer can exit the contract within 72 hours of receipt with full earnest money refund.
• Actual damages: cost to repair the undisclosed condition, plus diminished property value and consequential damages.
• Common-law fraud and misrepresentation claims: where the seller had actual knowledge and concealed it, buyers can sue for fraudulent misrepresentation, fraudulent concealment, or negligent misrepresentation.
• Punitive damages: available in cases of willful fraud or egregious concealment.
• Rescission of the sale: courts can unwind the transaction in significant cases.
• Agent consequences: licensed agents who knowingly participate in non-disclosure face Michigan LARA discipline, including license suspension or revocation.

Michigan fraud claims generally run from the date the buyer discovered or reasonably should have discovered the defect. Sellers can face claims years after the transaction closes.

The disclosure folder you should build before listing

Michigan sellers who arrive at closing with documentation already organized substantially reduce disclosure form completion time and post-sale litigation risk. Items to gather:

• Certificate of occupancy and any open or expired permits.
• Survey showing property lines, easements, and any encroachments.
• Roof install date, contractor, and warranty paperwork.
• HVAC, water heater, and major appliance records.
• Carpenter ant or termite treatment history: company, date, scope, and structural repairs if any.
• Mold remediation documentation: company, date, scope, and clearance testing results.
• Basement waterproofing or interior drainage system documentation.
• Sump pump install date and any service or battery backup records.
• Water quality test results if on a well, or any past municipal water quality notices.
• Septic permit, pumping records, and most recent inspection if applicable.
• Radon test results or mitigation system documentation.
• Underground storage tank documentation (removal, testing, DEQ paperwork).
• Lead paint test results or abatement records for pre-1978 homes.
• Insurance claim history on the property.
• HOA or condo governing documents, recent assessment letters, and budget.
• Foundation repair work with contractor records or engineer report.

For a deeper look at what records buyers and their inspectors specifically ask for at closing, see What Maintenance Records Do Home Buyers Ask For at Closing? and Pre-Listing Inspection Checklist for Sellers. For comparable Midwest state frameworks, see Ohio, Illinois, and Pennsylvania seller disclosure articles.

The bottom line for Michigan sellers

Deliver before the offer — not after. A 72-hour window is a short fuse that buyers will use if you hand it to them. Answer based on what you actually know: the Act protects sellers who genuinely don't know, not sellers who choose not to look. Michigan's older housing stock makes mold, basement moisture, carpenter ants, and lead paint the four categories where disclosure problems most often become lawsuits. Build the record while you own the home — every remediation, every pest treatment, every water intrusion event, every repair. The documentation you have is the protection you keep.