What Michigan Sellers Must Disclose

Michigan requires sellers to put it in writing. The form is the Seller's Disclosure Statement. Under the Seller Disclosure Act, Act 92 of 1993, a seller of 1-4 residential units must deliver the statutory Seller's Disclosure Statement disclosing known conditions affecting the property.

What the disclosure covers — and what it is

Ask for the signed Seller's Disclosure Statement early — failure to provide it can give a purchaser a right to terminate a binding purchase agreement. Read it as the seller's knowledge only, not a warranty, and still inspect. Check the form's tax warning: it expressly says not to assume your future taxes will be the same as the seller's.

Flooding: the answer that matters most

Whether Michigan law specifically requires flood disclosure, treat it as your job either way: run the exact parcel through FEMA's National Flood Hazard Layer before you offer. A flood-zone home means a flood-insurance requirement if you finance — and that premium belongs in your monthly-cost math from day one.

The Michigan traps inside the paperwork

Proposal A uncapping after transfer. Taxable value is capped at the lesser of 5% or inflation until ownership transfers; in the year a property is transferred the taxable value is set to state equalized value, so a long-held home can see a large tax increase for the buyer.

The disclosure form itself warns taxes change on transfer. The statutory Seller's Disclosure Statement itself warns: 'BUYER SHOULD NOT ASSUME THAT BUYER'S FUTURE TAX BILLS ON THE PROPERTY WILL BE THE SAME AS THE SELLER'S PRESENT TAX BILLS. UNDER MICHIGAN LAW, REAL PROPERTY TAX OBLIGATIONS CAN CHANGE SIGNIFICANTLY WHEN PROPERTY IS TRANSFERRED.'

What no disclosure will ever tell you

A disclosure is the seller's knowledge, on the seller's timeline. It says nothing about the street's crime trend, the registry, the tax bill you will pay after the sale, permits pulled (or never pulled) for the renovation in the photos, or the rezoning working its way through the planning office. In Michigan, property tax reassessment works like this: This is the classic Michigan trap: while the seller owned the home, Proposal A capped taxable value growth to the lesser of 5% or inflation. In the year after a transfer, taxable value uncaps to state equalized value (50% of true cash value), so your bill can jump sharply above the seller's even if the sale price and millage did not change — which is why the seller's current bill is a poor guide to yours. Pull those records yourself; they are all public.

Your checks, in order

• Read the disclosure line by line, and get 'unknown' answers in writing anyway — an unknown is a flag, not a pass.
• Run the exact parcel on FEMA's flood map.
• Estimate your post-sale tax bill with the Michigan records guide — never budget from the seller's bill.
• Check the address against the official Michigan registry.
• Ask the county for open and expired permits on the address before you waive anything.

Frequently asked questions

Is a seller disclosure form required in Michigan?

Yes — the Seller's Disclosure Statement. Under the Seller Disclosure Act, Act 92 of 1993, a seller of 1-4 residential units must deliver the statutory Seller's Disclosure Statement disclosing known conditions affecting the property.

Does a Michigan seller have to disclose flooding?

Do not rely on the paperwork either way — check the parcel on FEMA's National Flood Hazard Layer, which is the map lenders and insurers use.

The seller answered 'unknown' to half the form. Now what?

'Unknown' is legal in most regimes and useful to nobody. Treat every unknown as a job: inspection, permit search, and the county record file. If the seller genuinely doesn't know, the records usually do.

Sources: michigan.gov · clearstreamtitle.com · mspsor.com