Selling Your Fenton-Area Home? What to Know About Michigan's Seller's Disclosure Statement

When I sit down with a seller for a listing appointment, one of the first things I hand over is a blank Seller's Disclosure Statement. It's easy to rush through. Please don't. Of all the paperwork in a Michigan home sale, this is the one I see cause the most trouble when it's done carelessly, and the most peace of mind when it's done right.

Fall is actually a great time to fill it out. The fall rains have just tested your basement, the furnace is kicking on for the first time, and you're cleaning gutters and looking at the roof anyway. Here's what Fenton, Linden, Holly, and Grand Blanc sellers should know.

Who Has to Fill It Out

Michigan's Seller Disclosure Act covers the sale of any home with one to four residential units. That includes single-family houses, condos, and small multi-family buildings, and it also covers land contracts and leases with an option to buy (MCL 565.952).

There are some exceptions. The law doesn't apply to foreclosure sales, court-ordered transfers, transfers by a non-occupant fiduciary handling an estate or trust, transfers to a spouse, parent, grandparent, child, or grandchild, transfers between spouses in a divorce, transfers to or from a government entity, and sales of brand-new homes by a licensed builder that no one has lived in (MCL 565.953). If you're selling a parent's home as the personal representative and never lived there, ask me or your attorney how that applies to you.

Timing Matters More Than You'd Think

The statement has to reach the buyer before you sign a binding purchase agreement (MCL 565.954). In practice, I like to have it completed and available the day the listing goes live, so buyers' agents can see it before anyone writes an offer.

Here's why that matters. If the disclosure, or an amendment to it, is delivered after the purchase agreement is signed, the buyer can cancel the deal. They get 72 hours after delivery if it was handed to them in person, or 120 hours if it was sent by registered mail (MCL 565.954). That right ends at closing.

The state form even says it in capital letters: failing to give a buyer a signed disclosure statement lets them terminate an otherwise binding purchase agreement (MCL 565.957).

What the Form Asks About

The required form is written right into the statute (MCL 565.957). It asks whether a long list of appliances and systems are in working order, then gets into the house itself, including:

• Any evidence of water in the basement or crawl space
• Roof leaks and the roof's approximate age
• Well type and water testing, and the condition of septic tanks and drain fields
• Heating, plumbing, and electrical problems
• Past infestations like termites or carpenter ants
• Environmental hazards such as asbestos, radon, lead-based paint, fuel tanks, or contaminated soil
• Shared driveways or fences, easements, encroachments, and homeowners' associations
• Work done without permits or licensed contractors
• Flooding, drainage, or settling problems, and major fire, wind, or flood damage
• Outstanding utility or municipal assessments and pending lawsuits affecting the property

Local Items I Pay Extra Attention To

A lot of homes around Fenton Township, Tyrone, and our area lakes are on private wells and septic systems. If yours is, dig out any pumping receipts, well records, or water test results now. Buyers and lenders will ask, and having them ready answers questions before they become worries.

Radon is another one. Michigan's environmental agency (EGLE) says one in four Michigan homes is expected to have radon above the federal action level (EGLE Radon FAQ). On EGLE's county map, 20% of homes tested in Genesee County and 40% in Livingston County came back elevated (EGLE county radon map). If you've tested or installed a mitigation system, say so.

Lake homeowners should also think about shared features. A private road, a shared driveway, or a deeded lake-access easement belongs in the "shared in common" and "easements" questions.

If Your Home Was Built Before 1978

Federal law adds a separate lead-based paint disclosure for most homes built before 1978. You'll need to disclose any lead paint you know about, share any reports you have, give buyers the EPA pamphlet "Protect Your Family From Lead in Your Home," include a lead warning statement in the contract, and give buyers a 10-day chance to test, unless both sides agree in writing to a different period (U.S. EPA). You aren't required to test or remove lead paint yourself (EPA and HUD Q&A). Downtown Fenton, Holly, and Linden have plenty of beautiful older homes where this applies.

Honest Beats Perfect

Michigan law protects sellers who act in good faith. You aren't liable for something outside your personal knowledge, or for something that could only be found by inspecting hidden parts of the house or by an expert in a trade (MCL 565.955). What gets sellers in trouble is leaving off things they did know about.

My advice is always the same. If you fixed a basement leak five years ago, write it down along with who fixed it and when. A disclosed, repaired issue rarely scares a buyer. A surprise the inspector finds is what makes deals wobble. And if anything changes before closing, like a new leak or a furnace that quits, the form itself commits you to telling the buyer right away.

Let's Get Yours Ready

If you're thinking about selling this fall or next spring, I'll walk you through the disclosure line by line, help you pull together your receipts and records, and make sure it's in buyers' hands at the right time. Give me a call at (810) 962-4908.

This post is general information, not legal advice. For questions about your specific situation, talk with a Michigan real estate attorney.