Michigan Seller Disclosure Requirements in 2026: What to Disclose, Exemptions & Selling As-Is

If you are selling a house in Michigan, the seller disclosure form is the document most likely to cause you legal trouble after closing. It is also the document sellers most frequently underestimate, misunderstand, or try to avoid altogether. According to the National Association of Realtors, roughly 77% of all real estate lawsuits are connected to disclosure issues — making it the single most litigated area of residential real estate.

Michigan's Seller Disclosure Act, formally known as Act 92 of 1993, requires sellers of residential property with one to four units to complete a standardized disclosure statement before the sale closes. The form covers everything from roof condition and basement water problems to radon, mold, environmental contamination, and neighborhood nuisances. You cannot opt out by selling "as-is," and you cannot dodge it by claiming ignorance about things you actually know.

This guide walks through every category on the Michigan disclosure form, explains who qualifies for exemptions, breaks down what "as-is" really means under Michigan law, and shows you how the disclosure process works differently when you sell to a cash buyer. If you are a Michigan homeowner worried about what you have to disclose — or wondering whether a known defect will torpedo your sale — this is the guide you need.

The Michigan Seller Disclosure Act: What It Requires

Michigan's Seller Disclosure Act was enacted in 1993 to create a standardized process for residential property sellers to communicate known defects and conditions to buyers. Before the act, disclosure was a patchwork of common law obligations and local customs. The act replaced that uncertainty with a specific, mandatory form.

Who Must Complete the Form

The disclosure requirement applies to sellers of residential property containing one to four dwelling units. This includes single-family homes, duplexes, triplexes, and fourplexes. It does not apply to commercial property, vacant land without a dwelling, or residential buildings with five or more units.

The form must be delivered to the buyer before the purchase agreement is signed or, at the latest, within a specified time period after signing. If the buyer receives the disclosure after signing the purchase agreement, they typically have the right to rescind the agreement within a set number of days.

What the Form Looks Like

The Michigan seller disclosure statement is a multi-page form organized into sections covering different aspects of the property. For each item, sellers must indicate one of three responses:

• Yes: You are aware of a condition or defect related to that item
• No: You are not aware of any condition or defect related to that item
• Unknown: You genuinely do not know the condition of that item

The form does not ask sellers to warrant the condition of the property. It asks what you know. This is a critical distinction. You are not guaranteeing the roof will last 20 years. You are stating whether you know of any current problems with the roof. If you know the roof leaks and you check "No," that is fraud. If the roof has a hidden defect you genuinely do not know about, checking "No" is an honest answer.

When the Disclosure Must Be Delivered

Under the act, the seller disclosure statement should ideally be provided before the buyer makes an offer. In practice, it is often delivered at the time the purchase agreement is presented or shortly after. If the disclosure is delivered after the purchase agreement is signed, the buyer has the right to terminate the agreement — typically within 72 hours of receiving the disclosure — without penalty.

Every Category You Must Disclose

The Michigan seller disclosure form is comprehensive. It covers physical systems, environmental hazards, legal encumbrances, and neighborhood conditions. Here is what the form addresses, broken into the major categories.

Structural and Physical Conditions

Environmental Hazards

Water, Sewer, and Well Systems

• Water source: Municipal water, private well, or shared well
• Well condition: Known contamination, flow rate issues, well age, prior water quality tests
• Septic system: Age, condition, last inspection date, known failures or repairs, drain field status
• Sewer connection: Known issues with sewer line, history of backups, shared sewer lines
• Drainage: Standing water on property, grading issues, storm water problems

Legal and Land Use Issues

• Zoning violations: Any known non-conforming uses or zoning issues
• Easements and encroachments: Utility easements, shared driveways, fence line disputes
• HOA or association: Membership requirements, dues, rules, pending assessments
• Liens and assessments: Known liens, special assessments, or pending legal actions affecting the property
• Boundary disputes: Any known disputes with neighbors over property lines
• Permits: Whether improvements were done with proper permits

Other Required Disclosures

• Pest infestations: Termites, carpenter ants, powder post beetles, or other wood-destroying organisms
• Flooding and water damage: History of flooding from any source, whether the property is in a flood zone
• Insurance claims: Prior insurance claims for water damage, fire, or other losses
• Neighborhood nuisances: Known noise issues, odors, traffic problems, or other conditions that materially affect the property
• Deaths on the property: Michigan does not require disclosure of deaths or alleged hauntings, but some sellers voluntarily disclose to avoid disputes

The "As-Is" Myth: Why It Does Not Protect You

This is the single biggest misconception among Michigan home sellers. The belief goes like this: "If I sell the house as-is, I do not have to disclose anything because the buyer is accepting the property in whatever condition it happens to be in." This is wrong, and Michigan courts have made it explicitly clear.

Lorenzo v. Noel: The Case That Settled the Question

In Lorenzo v. Noel, the Michigan Court of Appeals addressed this exact issue. The seller sold a property with an as-is clause and argued that the clause relieved them of disclosure obligations. The court rejected this argument, holding that an as-is clause and the seller disclosure requirement serve different functions:

• An as-is clause shifts the risk of unknown defects to the buyer. It means the buyer cannot come back after closing and complain about defects that neither party was aware of
• The seller disclosure form requires the seller to share what they actually know. It addresses known defects — things the seller is aware of but the buyer cannot see or discover through a standard inspection

The court was clear: these are two separate legal mechanisms, and one does not replace the other. You can sell as-is and still be required to disclose every known defect. If you know the foundation is cracked, the basement floods, or the furnace is failing, the as-is clause does not give you permission to hide that information.

What "As-Is" Actually Does in Michigan

An as-is clause is still valuable — it just does not do what many sellers think it does. Here is what it actually accomplishes:

• Eliminates repair obligations: The seller is not required to fix anything before closing, even if the buyer's inspection uncovers problems
• Shifts risk of unknown defects: If neither the buyer nor the seller knew about a defect, the buyer cannot hold the seller responsible after closing
• Sets buyer expectations: Buyers entering an as-is transaction understand they are accepting the property without a guarantee that everything works perfectly

What it does NOT do:

• Eliminate the requirement to complete the seller disclosure form
• Excuse the seller from disclosing known defects
• Protect the seller from fraud claims if they actively concealed a material defect

The "Unknown" Answer Option and What It Means Legally

The Michigan seller disclosure form gives sellers three options for each question: Yes, No, and Unknown. The "Unknown" option is where sellers most frequently get themselves into trouble — either by overusing it to avoid disclosing what they actually know, or by not understanding what it legally commits them to.

When "Unknown" Is a Legitimate Answer

Marking "Unknown" is appropriate when you genuinely do not know the condition of a particular item. Common legitimate uses include:

• You inherited the property and never lived there
• The item relates to a system you never used (such as a sprinkler system you never turned on)
• The condition is not something you can observe without professional testing (such as radon levels if you never conducted a test)
• You purchased the property recently and have limited knowledge of its history

When "Unknown" Becomes a Legal Problem

Marking "Unknown" becomes problematic when evidence suggests you actually did know the answer. For example:

• You mark "Unknown" for basement water problems, but your insurance records show two water damage claims in the last five years
• You mark "Unknown" for roof condition, but you paid a contractor $8,000 to patch a leak last year
• You mark "Unknown" for environmental contamination, but you have a letter from the county health department in your files about soil testing

In these scenarios, a buyer who discovers the truth can argue that your "Unknown" answer was effectively a lie — that you knew the answer and deliberately chose "Unknown" to avoid triggering further questions. Michigan courts treat this as a potential fraud issue, not merely a disclosure oversight.

The Practical Rule

If you have any reason to know the answer — repair receipts, insurance claims, contractor reports, complaints from tenants, personal observations — answer honestly with "Yes" or "No." Reserve "Unknown" for items where you truly have no basis for forming an opinion. The form is not asking you to hire an inspector. It is asking you to share what you already know.

Who Is Exempt from Michigan Disclosure Requirements

Not every seller is required to complete the Michigan disclosure form. The Seller Disclosure Act includes specific exemptions for categories of sellers who either lack personal knowledge of the property's condition or are selling under circumstances where the standard disclosure process does not apply.

Complete List of Michigan Disclosure Exemptions

The Non-Occupant Fiduciary Exemption Explained

This exemption is particularly relevant for Michigan sellers dealing with inherited property. If you are the personal representative of a deceased person's estate and you never lived in the home, you do not have to complete the seller disclosure form. The logic is straightforward: you never occupied the property, so you cannot meaningfully disclose conditions you never experienced.

However, this exemption has limits. If you inherited the property but also lived in it — even temporarily — the exemption may not apply. The key criterion is whether you occupied the dwelling as a resident, not whether you owned it or held title to it.

Exemption Does Not Mean Zero Liability

Even if you qualify for an exemption from the seller disclosure form, you are still subject to Michigan's general fraud and misrepresentation laws. If a buyer asks you a direct question about the property and you lie, the disclosure exemption does not shield you from a fraud claim. The exemption removes the obligation to proactively complete the standardized form — it does not give you license to deceive.

Federal Lead Paint Disclosure: The Separate Requirement

If your Michigan home was built before 1978, you have a disclosure obligation that exists entirely outside of Michigan's Seller Disclosure Act. The federal Residential Lead-Based Paint Hazard Reduction Act of 1992 requires sellers of pre-1978 homes to comply with specific lead paint disclosure rules — regardless of whether you qualify for a Michigan state exemption.

What Federal Law Requires

• Disclose known lead-based paint hazards: If you know or have reason to know that lead-based paint is present, you must disclose that to the buyer
• Provide available records: Hand over any lead paint inspection reports, risk assessments, or test results you have
• Give the EPA pamphlet: Provide the buyer with the EPA publication "Protect Your Family From Lead in Your Home"
• Allow a 10-day inspection period: The buyer must be given at least 10 days to conduct a lead paint inspection at their own expense (the buyer can waive this right)
• Include disclosure language in the purchase agreement: The contract must contain a lead paint disclosure addendum signed by both parties

Why This Matters Separately

This is a federal requirement. It applies even if you are exempt from Michigan's state disclosure form. A foreclosing bank, a bankruptcy trustee, or a non-occupant fiduciary selling a pre-1978 home must still comply with the federal lead paint disclosure rules. Violations carry penalties of up to $19,507 per violation under current HUD enforcement guidelines, plus potential treble damages in private lawsuits.

In Michigan, where a substantial portion of the housing stock — particularly in cities like Detroit, Grand Rapids, Flint, and Lansing — was built before 1978, this requirement touches a significant number of transactions. Do not assume your Michigan state exemption covers federal lead paint obligations. It does not.

Consequences of Failing to Disclose

The reason disclosure matters so much is not just ethical — it is legal. Michigan provides buyers with specific remedies when sellers fail to disclose known defects, and the consequences range from financial damages to rescission of the entire sale.

What a Buyer Can Do If You Fail to Disclose

• Rescission of the sale: In severe cases, a court can undo the entire transaction, returning the property to the seller and the purchase price to the buyer
• Actual damages: The buyer can sue for the cost to repair the undisclosed defect, plus any diminution in property value
• Attorney fees and court costs: Michigan courts may award attorney fees to the prevailing party in disclosure disputes
• Fraud claims: If the seller's failure to disclose rises to the level of intentional fraud — actively concealing a known defect — the damages can include punitive components

The 6-Month Statute of Limitations

Michigan imposes a relatively short statute of limitations for certain disclosure-related claims. Buyers generally have six months from the date they discover (or should have reasonably discovered) a misrepresentation on the disclosure form to initiate a claim. This is shorter than many sellers expect, but it means that disclosure issues tend to surface quickly after closing — typically when the buyer moves in and discovers a problem that was not disclosed.

It is worth noting that this six-month window applies specifically to claims under the Seller Disclosure Act. Broader fraud claims may have longer statutes of limitations under Michigan's general fraud statutes, potentially extending the buyer's window to pursue legal action.

The 77% Statistic and Why It Matters

According to the National Association of Realtors, approximately 77% of real estate lawsuits are connected to disclosure issues. That is not a Michigan-specific number — it reflects the national landscape — but it underscores a fundamental reality: disclosure is the area where real estate transactions most commonly go wrong. Getting the form right is not just a legal obligation. It is the single most effective thing you can do to avoid a lawsuit after your sale closes.

Michigan House Bill 4110: Potential Changes in 2025-2026

Michigan's disclosure requirements may be evolving. House Bill 4110, introduced in the 2025-2026 legislative session, proposes changes to the Seller Disclosure Act that could affect how sellers complete the form and what additional items must be disclosed.

What HB 4110 Proposes

While the final language of the bill may change as it moves through the legislative process, the key proposals include potential updates to the standardized disclosure form to address modern concerns that were not part of the original 1993 act. These may include more specific questions about:

• PFAS (per- and polyfluoroalkyl substances) contamination — a significant concern in Michigan, particularly in areas near military bases and industrial sites
• Updated environmental hazard categories reflecting current Michigan DEQ (now EGLE) standards
• Clarifications on what constitutes "knowledge" versus "should have known" for disclosure purposes
• Potential updates to the exemption categories

What This Means for Sellers Right Now

As of February 2026, HB 4110 has not been signed into law. The current Seller Disclosure Act (Act 92 of 1993) remains in full effect, and you should complete your disclosure form based on existing requirements. However, if you are planning to sell later in 2026, it is worth monitoring the bill's progress. Any changes that expand disclosure requirements would apply to transactions closing after the effective date of the new law.

Regardless of what happens legislatively, the practical advice remains the same: disclose everything you know, answer honestly, and do not rely on "Unknown" for items where you have actual knowledge.

How Cash Buyers Handle Disclosed Defects Differently

Here is the part of the disclosure conversation that changes the math for Michigan sellers: the type of buyer matters as much as what you disclose. Disclosed defects affect traditional buyers and cash buyers in fundamentally different ways, and understanding the difference can determine whether your sale goes smoothly or collapses.

What Happens When You Disclose Defects to a Traditional Buyer

In a traditional sale — listed with an agent, marketed on the MLS, purchased by a homeowner using a mortgage — disclosed defects trigger a predictable chain of events:

• Price reduction demands: The buyer sees the disclosure, and their agent advises them to negotiate a lower price to account for the defect
• Repair credit requests: The buyer asks for a credit at closing to cover the estimated cost of repairs — often inflated by retail contractor estimates
• Lender complications: If the defect is significant (structural issues, environmental contamination, failed systems), the buyer's lender may refuse to approve the loan until the issue is resolved
• Appraisal problems: The appraiser may flag the disclosed defect and either reduce the appraised value or require repairs before the loan can close
• Deal falling through: In many cases, the buyer simply walks away. A disclosed foundation crack, mold problem, or environmental contamination issue scares off traditional buyers who want a move-in-ready home

The result is a painful cycle: you disclose honestly (as the law requires), and the disclosure kills the deal, extends your timeline, or costs you thousands in credits and repairs you were hoping to avoid.

What Happens When You Disclose Defects to a Cash Buyer

Cash buyers — particularly real estate investors — approach disclosed defects from a completely different perspective:

• They expect defects: Investors buy properties specifically because they have issues that traditional buyers will not accept. A leaking basement, aging roof, or mold problem is a renovation line item, not a dealbreaker
• No lender to block the sale: There is no mortgage company requiring an appraisal, no underwriter demanding repairs, and no loan that can fall through at the last minute
• No repair credit negotiations: Cash buyers factor the disclosed defects into their offer price from the start. The number they give you already accounts for every issue on the disclosure form
• Faster closing: Because there is no lender in the transaction, cash sales close in 7-14 days instead of 30-60. Less time on market means less carrying cost and less stress
• The disclosure form becomes a tool, not a threat: Instead of being the document that kills your deal, the disclosure form becomes a straightforward accounting of what the investor is buying. They read it, adjust their numbers, and close

You Still Must Disclose — But the Outcome Is Different

To be absolutely clear: selling to a cash buyer does not exempt you from completing the Michigan seller disclosure form (unless you qualify for one of the statutory exemptions listed above). You still must disclose every known defect. The difference is what happens after you disclose.

With a traditional buyer, disclosure often means deal complications. With a cash buyer, disclosure is simply information that gets factored into the price — and the sale moves forward.

Why Competition Among Cash Buyers Matters for Disclosed Properties

A single cash buyer looking at a property with disclosed defects has every incentive to lowball you. They know the defects scare away traditional buyers, and they know you may be running out of options. When multiple cash buyers review your property, the dynamic shifts. Each investor has to balance their renovation budget against what the other investors are likely to offer. The result is a higher price for you, even with significant disclosed defects.

This is particularly important in Michigan, where properties with environmental issues (radon, mold, contamination), structural problems (foundation cracks, water infiltration), or deferred maintenance are common — especially in older housing stock across Detroit, Grand Rapids, Flint, Lansing, and smaller cities throughout the state.

Frequently Asked Questions

What do Michigan sellers have to disclose when selling a house?

Under the Michigan Seller Disclosure Act (Act 92 of 1993), sellers of 1-4 unit residential property must complete a standardized disclosure form covering roof condition, basement water issues, structural problems, electrical and plumbing systems, heating and cooling, wells and septic, environmental hazards (radon, lead paint, mold, underground storage tanks), land use restrictions, flooding history, and any known material defects. Sellers must answer honestly based on what they actually know. The form provides three options for each item: Yes, No, and Unknown. You are not required to hire an inspector or investigate — but you must share what you already know.

Does selling a house "as-is" in Michigan remove the disclosure requirement?

No. Selling as-is in Michigan does not eliminate your duty to disclose known defects. The Michigan Court of Appeals confirmed this in Lorenzo v. Noel, ruling that an as-is clause shifts the risk of unknown defects to the buyer but does not excuse the seller from disclosing defects they actually know about. If you know the basement floods every spring and you fail to disclose that, an as-is clause will not protect you from a lawsuit. The as-is clause and the disclosure form serve different legal purposes, and you must comply with both.

Who is exempt from Michigan seller disclosure requirements?

Michigan exempts several categories of sellers from the disclosure requirement: foreclosure sales by lenders, transfers by bankruptcy trustees, court-ordered transfers (including divorce decrees and probate), transfers by fiduciaries who never occupied the property (such as personal representatives of estates), transfers between co-owners, and transfers to or from government entities. If you inherited a house and never lived in it, you may qualify for the non-occupant fiduciary exemption. However, even exempt sellers must comply with federal lead paint disclosure requirements for pre-1978 homes and cannot commit fraud or misrepresentation.

How long does a buyer have to file a claim over a disclosure issue in Michigan?

Under Michigan law, buyers have a limited window to file claims related to seller disclosure issues. The statute of limitations for disclosure-related claims is generally six months from the date the buyer discovers or should have discovered the misrepresentation. However, broader fraud claims may have longer statutes of limitations under Michigan's general fraud statutes. Given that 77% of real estate lawsuits are linked to disclosure problems, sellers should take the disclosure form seriously and answer every question honestly to avoid post-sale legal exposure.

Do I need to disclose lead paint when selling a house in Michigan?

If your home was built before 1978, you are required by federal law — not just Michigan law — to disclose known lead-based paint hazards and provide the buyer with an EPA pamphlet titled "Protect Your Family From Lead in Your Home." This is a separate requirement from the Michigan seller disclosure form and applies regardless of whether you qualify for a state exemption. Buyers must also be given a 10-day period to conduct a lead paint inspection at their own expense, though they can waive this right. Violations of the federal lead paint disclosure rules can carry penalties of up to $19,507 per violation.

Protect Yourself by Disclosing — Then Sell to a Buyer Who Will Not Walk Away

Michigan's seller disclosure requirements exist for a reason: they protect buyers from hidden defects and they protect sellers from post-sale lawsuits. The Seller Disclosure Act is not your enemy. The sellers who get into trouble are the ones who try to hide defects, misuse the "Unknown" option, or believe that an as-is clause replaces honest disclosure. The Lorenzo v. Noel decision made it clear that Michigan courts will not tolerate those strategies.

The smartest approach is straightforward. Fill out the disclosure form honestly. Disclose everything you know. If that means admitting the basement has water issues, the roof needs replacement, or you found mold in the crawl space — put it on the form. The cost of disclosing is measured in dollars. The cost of not disclosing is measured in lawsuits.

Then sell to a buyer who actually wants the property despite its disclosed conditions. Cash buyers — particularly interested cash buyers — are built for exactly this scenario. They read the disclosure form, factor every defect into their offer, and close the sale. No repair demands, no credit negotiations, no lender blocking the transaction because of an appraisal issue. Just a direct, transparent sale where both parties know exactly what they are getting.

For Michigan sellers with properties that have known issues — and that includes a significant portion of the state's older housing stock — cash offers from multiple investors are the path of least resistance. You comply fully with the law, and you still get your property sold.

Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Michigan seller disclosure requirements are governed by the Seller Disclosure Act (Act 92 of 1993) and may change if House Bill 4110 or other legislation is enacted. Federal lead paint disclosure requirements apply separately under the Residential Lead-Based Paint Hazard Reduction Act of 1992. Consult with a Michigan real estate attorney for advice specific to your situation.