Question 1

What is the Michigan Seller's Disclosure Statement?

Accepted Answer

The Michigan Seller's Disclosure Statement is a state-mandated form created under the Seller Disclosure Act (MCL 565.951 et seq.) that residential sellers of one-to-four-unit properties must complete and deliver to buyers before a binding purchase agreement. It runs roughly 60 questions across the home's major systems — roof, basement, well, septic, plumbing, electrical, HVAC, environmental hazards, and structural condition. Sellers answer from personal knowledge only; the form explicitly says it is not a warranty and not a substitute for the buyer's own inspection. In Grand Rapids, the form is typically delivered with the listing packet so every offer is written with full knowledge of disclosed conditions.

Question 2

When does Michigan law require the disclosure to be delivered?

Accepted Answer

Under MCL 565.954, the seller must deliver the completed disclosure to the buyer before the buyer signs a binding purchase agreement. If delivery happens after the agreement is signed, the buyer gets a statutory termination right — 72 hours after personal delivery or 120 hours after mailed delivery — to back out without penalty. In practice, Grand Rapids listings under Holden Richardson of 616 Realty include the signed disclosure inside the MLS attachments, so buyers acknowledge it before writing an offer. This eliminates the post-offer termination window and keeps the deal on the 28-day median offer-to-close timeline.

Question 3

Who is exempt from the Michigan seller disclosure requirement?

Accepted Answer

MCL 565.953 exempts several categories: court-ordered transfers (divorce, probate, bankruptcy), foreclosures and deed-in-lieu transfers, transfers between co-owners, transfers to a spouse or direct family member, fiduciary transfers by personal representatives or trustees who never occupied the home, and new construction that has never been occupied. Builders selling a brand-new Grand Rapids home are exempt; an estate selling Grandma's house through a personal representative is exempt; the homeowner next door selling their primary residence is not. Even when exempt, many sellers choose to disclose voluntarily to reduce post-closing dispute risk.

Question 4

What counts as a 'known material defect' that must be disclosed?

Accepted Answer

A material defect is a condition that has substantial adverse effect on the value of the property or that significantly impairs its safe use. Examples sellers commonly disclose in Grand Rapids: a basement that has flooded during heavy rain, a roof leak repaired three years ago, a failed well pressure tank, a non-conforming septic field, knob-and-tube wiring in pre-1950 homes, ice damming history, and any history of structural settling. The standard is what the seller actually knows — not what an inspector might discover. If the seller has knowledge of the issue, the form requires disclosure.

Question 5

Do I have to disclose a death or crime that happened in the home?

Accepted Answer

No. Michigan does not require disclosure of deaths, suicides, or crimes that occurred in the home — these are not considered material facts about the physical condition under MCL 565.951 et seq. The disclosure form focuses on physical conditions and systems, not stigma. However, if a buyer directly asks the seller or the seller's agent a specific question, the answer must be truthful. Holden Richardson's standard practice is to answer specific buyer questions truthfully but not volunteer stigma history that the statute does not require, balancing seller privacy with the duty of honesty.

Question 6

What happens if I forget to disclose something I knew about?

Accepted Answer

Liability under the Seller Disclosure Act depends on knowledge and intent. A genuine oversight — something you forgot — generally does not create liability if you did not know at signing. A knowing misstatement or active concealment can expose you to actual damages under MCL 565.955, and Michigan courts have allowed fraud claims years after closing when concealment is proven. The remedy is typically the cost to cure the defect, not rescission, but legal fees can dwarf the repair cost. Consult a Michigan real estate attorney if you discover a missed disclosure post-closing.

Question 7

Can I sell my Grand Rapids home 'as-is' and skip the disclosure?

Accepted Answer

No. 'As-is' is a contractual term that limits the seller's repair obligations and post-closing warranties; it does not exempt the seller from the statutory disclosure duty under MCL 565.951 et seq. As-is contracts and full Seller's Disclosure Statements coexist on most Grand Rapids transactions involving older homes, estate sales (when not exempt), or properties with known issues the seller does not want to repair. The buyer still inspects, the seller still discloses known defects, and the contract simply allocates who pays for any agreed-upon repairs — usually no one.

Question 8

What if I genuinely don't know the answer to a disclosure question?

Accepted Answer

The form has an 'unknown' option for every question, and using it honestly is fully protected under the Act. If you bought the house six months ago and have no idea whether the well pump has been replaced, check 'unknown.' What the statute punishes is false certainty — checking 'no defect' on something you know is defective. Sellers in Grand Rapids working with Holden Richardson are coached to answer 'unknown' on legitimately unknown items rather than guess, because a guess that turns out wrong looks like a misstatement, while an honest 'unknown' invites the buyer's inspector to investigate.

Question 9

Does the disclosure replace the buyer's home inspection?

Accepted Answer

No. The Michigan Seller's Disclosure Statement explicitly states it is not a warranty and not a substitute for inspection. The disclosure captures what the seller knows; the inspection captures what a trained inspector finds. On Holden Richardson's 150 closings, every transaction except cash-as-is investor purchases included a buyer-paid inspection costing $400–$650 in the Grand Rapids market. The two documents serve different purposes: the disclosure protects the buyer from concealment; the inspection protects the buyer from surprises the seller could not reasonably know about.

Question 10

Where can I get the official Michigan Seller's Disclosure Statement form?

Accepted Answer

The form is published in the Michigan Compiled Laws at MCL 565.957 and is available through the Michigan Association of Realtors, most title companies, and any licensed Michigan real estate agent. Holden Richardson, Realtor®, 616 Realty LLC, MI License #6501392389, provides the current form to every Grand Rapids seller at the listing appointment along with a walkthrough of the questions. For a deeper statutory breakdown including the full text of MCL 565.957, see my long-form guide. Always consult a Michigan real estate attorney for fact-specific questions about your disclosure.

How does Michigan's seller disclosure law work?

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