Detroit Home Seller Disclosure Requirements (2026)
Michigan's Seller's Disclosure Act requires a comprehensive disclosure form from all residential sellers. Metro Detroit's aging housing stock, varied city/suburb dynamics, and post-industrial context create specific disclosure issues.
Michigan's Seller Disclosure Statement
Michigan's Seller's Disclosure Act (MCL 565.951) requires sellers to provide the Seller's Disclosure Statement to buyers before or within 72 hours of accepting an offer. If provided after offer acceptance, buyers have 3 business days to rescind.
The Michigan Seller's Disclosure Statement covers:
Water supply and plumbing: Public or private (well) water. If private well, disclose well age, last test results, any known issues. Water quality testing may be required by lenders for private wells. In certain areas of Michigan, there are elevated concerns about PFAS contamination in groundwater — if your property is near an identified contamination site, disclose any knowledge of it.
Sewage disposal: Public sewer or private septic. If septic, disclose system type, age, last service date, and any known issues. Conventional vs. mound vs. alternative septic systems have different considerations for buyers.
Flooding and water intrusion: Any known flooding, basement water intrusion, drainage issues, or proximity to floodplain. For metro Detroit properties near the Clinton River, Rouge River, Huron River, or the many drainage channels throughout the metro, flooding history is material.
Structural: Foundation cracks or movement, wall or ceiling cracks, roof condition and age, known structural defects.
Environmental: Known presence of lead paint (in addition to federal disclosure requirements), asbestos, radon, underground storage tanks, contaminated soil.
HVAC and mechanical: Age and condition of heating, cooling, electrical service, plumbing systems.
Zoning and legal issues: Known code violations, unpermitted additions, neighborhood association (if applicable), any easements or encroachments affecting the property.
Lead Paint — Critical in Metro Detroit
Metro Detroit has one of the largest concentrations of pre-1940 housing stock of any major US metro. Detroit proper has enormous amounts of pre-World War II housing. Dearborn, Hamtramck, Highland Park, and many Macomb County first-ring suburbs also have pre-1978 inventory.
Federal law requires:
FHA loans have additional requirements: if the inspector identifies chipping, peeling, or deteriorating paint on pre-1978 homes, it must be addressed before FHA financing can close. This is a significant issue in Detroit city proper where deferred maintenance is common.
Michigan Transfer Tax
Michigan imposes transfer taxes at both the state and county level:
On a $250,000 sale: State tax = $1,875; County tax = $275; Total = $2,150. Typically seller's cost in Michigan.
Exemptions: Certain Michigan transfers are exempt from the state transfer tax (not county), including a principal residence exemption available to sellers who are selling their principal residence and purchasing another principal residence in Michigan. Consult a Michigan attorney or title company to determine if any exemption applies.
PFAS and Environmental Disclosure
Michigan has significant PFAS (per- and polyfluoroalkyl substances) contamination in some areas, related to industrial facilities, military bases (Wurtsmith Air Force Base vicinity, Camp Grayling) and other sources. The Michigan EGLE (Department of Environment, Great Lakes, and Energy) maintains contamination site information.
If your property is near a known PFAS contamination site or if you have any knowledge of contamination on or near the property, disclosure is required under Michigan's Seller Disclosure Act.
Detroit City Title Issues
Properties in Detroit city that have passed through tax foreclosure, land bank sales, or have complex ownership histories require particular title attention. Before listing:
Detroit has a history of clouded titles from foreclosures. Buyers' lenders will require title insurance, and if title cannot be insured, closing cannot occur.