What Michigan sellers need to know about their disclosure obligations, how to ensure a compliant transaction, and what to do when problems arise after closing.
Contact the CommitteeMost real estate educational content focuses on buyers. Sellers are the other half of every transaction, and they have their own significant obligations and risks. A seller who does not understand what Michigan law requires may inadvertently create disclosure violations, breach contractual representations, or face claims from buyers after closing that could have been avoided with better preparation.
Coventry Enterprises LLC provides seller resources as part of its commitment to education as oversight. When sellers know what is expected of them and fulfill those expectations, transactions are cleaner and disputes are less likely. The committee's review work consistently shows that seller-side problems cluster around misunderstanding of disclosure obligations and poor guidance from listing agents who do not ensure their clients understand what they are signing.
The Michigan Seller Disclosure Act requires sellers of residential property to complete a standard disclosure form covering specified conditions. The form must be provided to the buyer before the buyer is legally bound by a purchase agreement. This is not optional. A seller who fails to provide the disclosure form in the required timeframe, or who provides a materially incomplete or inaccurate form, has violated the Act's requirements.
| Disclosure Category | What Sellers Must Address |
|---|---|
| Structural conditions | Roof, foundation, walls, floors, ceilings, and any known structural defects or prior repairs |
| Water and drainage | Water intrusion, flooding history, basement moisture, sump pump, well, and septic conditions |
| Systems | Heating, cooling, plumbing, and electrical systems including known deficiencies or needed repairs |
| Environmental conditions | Lead-based paint (pre-1978 properties), radon, underground storage tanks, known contamination |
| Legal and zoning | Easements, encroachments, HOA restrictions, code violations, pending assessments, legal proceedings affecting the property |
| Other known defects | Any other known material defects not covered by the specific categories above |
Sellers are required to disclose conditions they know about. They are not required to conduct an investigation of conditions they genuinely do not know about. But "I didn't know" cannot be used to shield deliberate ignorance. If a seller actively avoids learning about a condition because they suspect it exists and do not want to disclose it, that is not the same as genuine ignorance. Courts and oversight committees look at what a seller in the seller's position reasonably should have known, not just what they claim to have known.
A buyer who discovers that a seller failed to disclose a material condition has several potential remedies under Michigan law, depending on the circumstances. These include rescission of the sale, damages for the cost to remedy the undisclosed condition, and in cases of intentional concealment, potential claims for fraudulent misrepresentation. The buyer's ability to pursue these remedies depends on timing, documentation, and the specifics of what was and was not disclosed. This is exactly the kind of situation the committee's review work addresses when buyers bring matters to Coventry Enterprises.
Do not leave sections blank. If you have repaired a roof leak, disclose both the prior leak and the repair. A disclosed and repaired condition is in a much better position than an undisclosed one. Buyers can absorb known issues; what creates problems is discovering issues that were not disclosed.
Before listing, collect receipts, permits, and warranty documents for any significant work done on the property. This documentation supports your disclosure and demonstrates that issues were properly addressed. It also gives buyers the information they need to make an informed decision without having to guess about the condition of systems or components.
Listing agents sometimes describe properties in marketing terms that overstate their condition. "Move-in ready" for a property with known deferred maintenance, "fully updated" for a property with only cosmetic renovations, and "new roof" for a roof that was re-shingled over aging decking are examples. You are responsible for the accuracy of representations made in your listing. Review what your agent writes before it is published.
The purchase agreement contains representations from you, the seller. Read what you are signing. If the agreement includes representations about the property's condition, systems, or history, make sure those representations are accurate. An inaccurate representation in the purchase agreement creates liability separate from and in addition to any disclosure form violations.
If you discover a material condition after signing a purchase agreement, disclose it promptly. Michigan law gives buyers the right to rescind the agreement if the seller provides new or materially modified disclosures. This may feel like a risk, but the alternative, proceeding without disclosure and facing a claim after closing, is worse. Prompt disclosure of discovered conditions is the right approach legally and practically.
Your listing agent has legal obligations to you and professional obligations that govern how they can represent you. A good listing agent will explain your disclosure obligations clearly, review your disclosure form before submission to ensure it is complete, market the property accurately, and ensure that the purchase agreement terms are clear and reflect what was agreed.
Unfortunately, not all listing agents meet these standards. The committee has reviewed transactions where listing agents failed to advise sellers about disclosure requirements, prepared listings that misrepresented property condition, and did not explain the implications of purchase agreement terms to their seller clients. If you suspect your listing agent gave you inadequate guidance, the committee's broker ethics review service is relevant to your situation.
If a buyer contacts you after closing claiming a defect was not disclosed, do not panic, but do not ignore it. Review your disclosure form and any written communications from the transaction to understand what was disclosed. If you disclosed the condition and the buyer accepted it, your position is much stronger. If you did not disclose a condition you knew about, consulting a Michigan real estate attorney promptly is advisable.
You can also request an independent review. If a buyer is making claims you believe are unfounded, independent documentation of what your disclosure form shows and what other transaction records reflect can be useful in establishing your position. Coventry Enterprises LLC reviews transactions from the perspective of any party with a legitimate stake in the outcome.
Michigan's Seller Disclosure Act requires sellers of residential property to complete a disclosure statement covering specified conditions and known defects. The form must be provided to the buyer before the buyer is bound by a purchase agreement. Sellers must disclose conditions they know about. The form covers structural conditions, water and drainage, systems, environmental conditions, legal matters affecting the property, and any other known material defects.
No. Michigan's Seller Disclosure Act applies to residential sales regardless of as-is terms. As-is language affects how the buyer accepts the property's condition, but it does not eliminate the seller's obligation to complete and provide the disclosure form. Sellers who use as-is language as a basis for not completing the disclosure form are not complying with the Act.
Michigan's disclosure obligation applies to conditions you know about. If you genuinely did not know about a defect, you did not violate the disclosure requirement by not disclosing it. The question becomes whether you should have known about it given how long you owned the property and the nature of the condition. This is a fact-specific determination. An independent review of your disclosure form and the transaction record can document what you disclosed and when, which is valuable if a buyer presses a claim.
Listing agents have professional obligations to ensure their clients understand and comply with disclosure requirements. If a listing agent actively contributed to a disclosure failure, failed to advise the seller about their obligations, or made misrepresentations in the listing, the agent may have professional liability separate from the seller's. A broker ethics review by the committee can evaluate whether the listing agent met their professional obligations in a specific transaction.
Michigan law has specific statutes of limitations for different types of claims. Fraud claims and breach of contract claims have different applicable periods, and the clock may run from when the buyer discovered or should have discovered the problem rather than from the closing date. Buyers and sellers alike should consult a Michigan real estate attorney about applicable timing when claims or potential claims are involved.
Coventry Enterprises LLC can review completed transactions where disclosure compliance is at issue. Contact the committee to discuss your situation.
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