Michigan Seller Disclosure and Land Sales
Michigan requires a Seller's Disclosure Statement for most residential sales and regulates subdivided-land sales under the Land Sales Act. This chapter explains both and the broker's role in accurate disclosure.
The Seller Disclosure Act
The Michigan Seller Disclosure Act requires sellers of most residential property of one to four units to deliver a Seller's Disclosure Statement describing the known condition of the property and its systems. It is a disclosure of known conditions, not a warranty. Certain transfers, such as some foreclosures and estate sales, are exempt. The licensee must ensure delivery and never help conceal known defects.
Completing the Statement Honestly
The disclosure asks the seller to report actual knowledge. When the seller genuinely does not know an item's condition, the correct answer is 'unknown' rather than a guess, a false claim of good condition, or a blank. The licensee should not complete the seller's disclosures for the seller, and should encourage full, honest reporting to avoid misrepresentation liability.
The Land Sales Act
The Michigan Land Sales Act regulates the offering and sale of subdivided lands and lots, requiring registration and disclosures to protect purchasers of undeveloped or subdivided parcels. It targets developer sales of multiple lots rather than ordinary resales of a single existing home. Brokers involved in new subdivision sales should confirm Land Sales Act compliance.