The Michigan Seller Disclosure Statement, explained
Michael Allen, Associate Broker
· 2 min read
Short answer
Most Michigan home sellers have to fill out a Seller Disclosure Statement describing what they know about the home's condition: the roof, basement, systems, past water problems and so on. It should be given to the buyer before the purchase agreement is signed. If it's delivered after, the buyer can back out in writing within 72 hours (120 hours if it was mailed).
Every seller I work with fills one of these out. It's a few pages of yes or no questions with room for notes, and it matters more than people think.
What's on it
The form asks about the condition of the home as far as you know it. Things like:
- Appliances and systems, and whether they work
- Roof leaks and age
- Basement or crawl space water
- Structural problems, past repairs, additions and permits
- Well and septic, if the home has them
- Environmental issues you know about
The key phrase is "as far as you know." You're not expected to be an inspector. You're expected to be honest about what you've seen and done.
When it's due, and the 72 hour rule
Under Michigan's Seller Disclosure Act, the statement should be delivered before the seller signs a binding purchase agreement. If it's delivered after, the buyer has 72 hours from in-person delivery, or 120 hours if sent by registered mail, to terminate in writing. You can read the statute here: MCL 565.954.
That's why we have sellers complete it before we go live. It keeps that door from opening during the deal.
"I'm selling as is." Do I still have to?
Usually yes. "As is" means you're not agreeing to make repairs. It doesn't mean you can keep quiet about problems you know about. A handful of transfers are exempt under the law, like certain court-ordered and foreclosure sales, but a typical owner sale isn't one of them.
My honest advice
- Disclose it. If you had water in the basement in 2019 and fixed it, say so and say what you did. Buyers are much more comfortable with a known, fixed problem than one they discover.
- Keep receipts. Roof, furnace, waterproofing, permits. Attach or reference them.
- Don't guess. "Unknown" is a fine answer when you truly don't know.
- Update it if something changes before closing.
Most disclosure disputes I've seen didn't come from big problems. They came from small ones that weren't mentioned.
Thinking about selling?
Start with a number. Our instant home value takes about a minute. And here's what to expect for costs when you sell in Michigan.
Quick questions
Is a seller disclosure required in Michigan?
For most home sales, yes. Michigan's Seller Disclosure Act requires sellers to give buyers a disclosure statement, with a few exemptions such as certain court-ordered and foreclosure sales.
Can a buyer back out after receiving the seller disclosure?
If the disclosure is delivered after the purchase agreement is signed, the buyer can terminate in writing within 72 hours of in-person delivery or 120 hours if it was sent by registered mail.
Do I have to disclose if I sell as is?
Usually yes. Selling as is means you won't make repairs, but you still disclose what you know about the home's condition.
I'm a real estate broker, not an attorney. If you have a legal question about your disclosure, talk with a real estate attorney.
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