Understanding Michigan's Real Estate Disclosures

Real estate transactions involve a lot of paperwork, but few documents are as important — or as frequently misunderstood — as the disclosure statements. In Michigan, both buyers and sellers have specific rights and responsibilities when it comes to disclosing (and discovering) material facts about a property. Understanding these requirements can protect you from costly surprises and help you navigate the transaction with confidence.

The Michigan Seller's Disclosure Statement

Michigan law (MCL 565.965) requires sellers of residential real property to provide buyers with a written disclosure statement before the buyer signs a purchase agreement. This document, commonly known as the Seller's Disclosure Statement, is the seller's opportunity — and obligation — to disclose known material defects and conditions of the property.

The form covers a wide range of categories, including:

• Structural components — foundation, walls, roof, and flooring
• Plumbing, electrical, and mechanical systems — age, condition, and known issues
• Water and sewer — municipal or private, and any history of flooding or water intrusion
• Environmental hazards — asbestos, radon, lead-based paint, and mold
• History of the property — past fires, insurance claims, renovations, or disputes
• Land and lot conditions — easements, encroachments, and flood zone status

Sellers must answer honestly to the best of their knowledge, but the disclosure form specifically allows sellers to mark items as "unknown" when they genuinely don't have information. The key legal standard is knowledge — sellers aren't required to inspect the property or become experts. But if they know about a defect and fail to disclose it, they can face legal liability after the sale.

I always encourage my seller clients to be thorough and transparent. A complete, honest disclosure doesn't scare buyers — it builds trust. And buyers who feel informed are more likely to move forward with confidence rather than backing out over concerns that surface during inspection.

Lead-Based Paint Disclosures

If a home was built before 1978 — and many homes in Mid-Michigan were — federal law requires sellers to disclose what they know about lead-based paint and lead-based paint hazards. This is in addition to Michigan's state disclosure requirements. The federal requirement applies nationwide under the Residential Lead-Based Paint Hazard Reduction Act.

Sellers must provide buyers with:

• An EPA-approved pamphlet about lead-based paint hazards
• A disclosure form detailing the seller's knowledge of lead paint in the home
• A lead disclosure attached to the purchase agreement
• A 10-day inspection period during which the buyer can conduct a lead-based paint inspection or assessment at their own expense

Buyers in pre-1978 homes should pay close attention to this disclosure. Lead paint in good condition is generally not a hazard, but chipping, peeling, or deteriorating paint in older homes can create a serious health risk — especially for young children. If lead paint is identified, it can be managed through encapsulation, repair, or professional abatement, and these costs can sometimes be negotiated as part of the transaction.

Well and Septic Considerations

Many properties in the more rural and semi-rural areas of Mid-Michigan — particularly in Lapeer, Tuscola, Shiawassee, and parts of Genesee and Livingston Counties — rely on private wells and septic systems rather than municipal water and sewer. These systems come with their own disclosure requirements and due-diligence steps.

Well water: Michigan law requires that well water be tested for certain contaminants before a property with a private well is sold. The seller must provide the buyer with the results of a bacteriological test (coliform bacteria) and, in some cases, chemical testing. This protects buyers from purchasing a home with unsafe drinking water. I always recommend that my buyer clients consider additional testing for minerals, hardness, and any contaminants specific to the area's geology.

Septic systems: Sellers are not universally required to have a septic inspection before selling in Michigan, but the buyer's lender or insurer may require one. More importantly, a failing septic system can cost $15,000–$30,000+ to replace. I strongly recommend that buyers of properties with septic systems request an inspection as part of the due-diligence process. A properly functioning system that's been regularly maintained should have documentation — pumping records, maintenance history — that the seller can provide.

What Buyers Should Watch For

The disclosure statement is your first window into a property's condition, but it's not the whole picture. Here's what I advise my buyer clients to pay attention to:

• Read every section carefully. Don't skip the "unknown" answers — note them, and ask your agent to help you follow up. Sometimes "unknown" means the seller hasn't lived in the home long enough to know. Sometimes it warrants deeper investigation.
• Compare disclosures to inspection findings. If a seller discloses a roof replacement in 2018 but the inspector notes significant wear, that's a conversation worth having. Disclosures and inspections should tell a consistent story.
• Watch for pattern disclosures. A single "yes" on a water intrusion question is manageable. Multiple "yes" answers across related categories — water, foundation, mold — suggest a pattern that needs professional evaluation.
• Don't skip the inspection. The disclosure statement is a legal document, but it's not a substitute for a professional home inspection. In my experience, inspections routinely uncover conditions that the seller genuinely didn't know about.
• Ask questions. If something in the disclosure is unclear, ask your agent to help you understand it. That's one of the most important things I do for my buyer clients.

The Agent's Role in Disclosures

As a licensed REALTOR®, I play an important role in the disclosure process for both buyers and sellers. For sellers, I help complete the disclosure statement accurately and thoroughly, making sure nothing is overlooked. For buyers, I review every disclosure line by line, flag areas of concern, and coordinate follow-up with inspectors and specialists. My background in transaction processing and behind-the-scenes real estate work gives me a particularly detailed eye for these documents.

Disclosures can feel overwhelming, but they exist to protect you — whether you're buying or selling. With the right guidance, they become a straightforward part of a well-managed transaction.

If you have questions about the disclosure process or any aspect of buying or selling in Mid-Michigan, I'm happy to help. Schedule a consultation or call me at 810-513-3335.