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Litigation Blog.
The seasoned lawyers and litigators at The Rubinstein Law Firm are here to share their insights with you.

Real estate sales under Michigan’s Seller Disclosure Act

Michigan’s Seller Disclosure Act requires real estate sellers to reveal information about their properties to potential buyers. As noted on the Michigan Legislature website, a disclosure statement confirms that a seller has provided what he or she knows about a home’s condition.

Before listing real estate for sale, owners must complete a disclosure form. If an owner hires an agent to sell the property, the agent must provide copies of the seller’s signed statement to potential buyers.

Information to include on a disclosure form

Sellers typically use a standard form as a checklist to disclose whether a property’s structural systems and amenities work or need repair. Options to check off also include “unknown” and “not available.” Statements generally offer space for sellers to write an explanation about a known condition.

Forms must contain information about a property’s plumbing, water and sewage systems. Electrical systems also require disclosure. If components operate remotely, a form must include the active controls.

Other issues may need disclosure

When shopping for homes in the Wolverine State, buyers may review disclosure statements before making a purchase. As reported by the Lansing State Journal, seller forms must include environmental issues such as radon, chemical storage tanks and asbestos.

The law requires revealing problems involving pests such as termites or rodents. If a home received treatment for an infestation, a seller must provide its history. Forms must also describe whether a property’s central heating and air conditioning systems work or need repair.

Seller disclosure statements do not serve as a warranty or real estate contract. Professional third-party inspections may reveal unknown defects or potential problems about a property that may require discussion before completing a transaction.