Seller disclosure and home purchase disputes: what the seller had to tell you, and what a signed agreement does to your options
I am Mitchell Bisson, a Grand Rapids real estate lawyer. I have litigated for over 15 years. A home purchase dispute usually starts after the keys change hands: water in the basement that the seller said was never there, a roof the seller said did not leak, or a sale that falls apart over an inspection, a deposit or a walk-through. This page covers the Michigan Seller Disclosure Act, what a seller can be held to when the statement was wrong, how an as is clause and the purchase agreement change the picture, and the time limits that apply. I handle these matters for homeowners, mostly buyers who found a problem after signing and sellers accused of hiding one. I do not promise outcomes.
The short answer. For a sale of a home with one to four residential units, the seller has to hand the buyer a signed disclosure statement before the seller signs a binding purchase agreement. MCL 565.954(1). The statement is a disclosure of what the seller knows, not a warranty, and a seller is not liable for an error that was outside the seller’s personal knowledge. MCL 565.955(1); MCL 565.957. A seller who knew of a problem and answered falsely, or hid it, can still face a fraud claim. MCL 565.961. Nothing here predicts how your case will end.
Most of these disputes turn on two questions: what the seller actually knew when the statement was signed, and what the buyer was told in writing before the purchase agreement became binding. The statement itself is a form set out in the statute. Its first property question asks whether there has been evidence of water in the basement or crawl space, and later questions ask about roof leaks, flooding and drainage problems, structural problems, infestation, environmental hazards and work done without permits. MCL 565.957. A “no” on one of those lines is the document I start with in most cases.
The Act is short, and I read it from the Legislature’s current text and not from a form a broker handed out. The sections I use most are MCL 565.952 (which transfers are covered), MCL 565.954 (delivery and the right to terminate), MCL 565.955 (limits on liability), MCL 565.960 (good faith) and MCL 565.961 (fraud and misrepresentation claims are not displaced). The Legislature’s posted text, current through Public Act 114 of 2026 when I pulled it in October 2026, shows the form in section 7 last amended in 2005 and the other sections I rely on unchanged since the Act took effect in 1994.
One recent decision is worth knowing. In Gholston v Sherrill, No. 367226 (Mich Ct App, June 10, 2025) (published), the Court of Appeals held that contaminated groundwater under a home is an “environmental hazard” the seller must disclose when there is an actual, viable route for the contaminant to reach the soil or air of the property, even though no contamination had been found in the soil or the house. The sellers there had checked “no” on the environmental problems question. The court reversed summary disposition for the sellers, because what they knew and whether the buyers reasonably relied on the form were questions of fact.
Michigan seller disclosure and home purchase rules, time limits and key points
These are the rules in the statutes and the case law. How they apply to your purchase depends on the dates, the form and what the seller knew.
| Issue | What the law says | Time limit or key rule | Authority |
|---|---|---|---|
| Who has to give the statement | The transferor of residential property with one to four dwelling units, on a sale, exchange, land contract or option. Court-ordered transfers, foreclosure sales, transfers by a nonoccupant fiduciary of an estate, transfers to a spouse, parent, grandparent, child or grandchild and a few others are exempt | Delivered before the seller signs a binding purchase agreement. The seller must also show compliance on the agreement, an addendum or a separate document | MCL 565.952; MCL 565.953; MCL 565.954(1), (2) |
| Statement delivered late, or amended late | If a disclosure or an amendment is delivered after the seller signs a binding agreement, the buyer may terminate by written notice to the seller or the seller’s agent | Not later than 72 hours after in-person delivery, or 120 hours after delivery by registered mail. The right ends when the property is transferred by deed or installment sales contract | MCL 565.954(3), (4); MCL 565.962 |
| A wrong answer on the statement | The seller is not liable for an error, inaccuracy or omission that was not within the seller’s personal knowledge. The seller need not disclose what could be learned only by inspecting inaccessible areas or by someone with specialized training in a science or trade | Disclosures must be made in good faith, meaning honesty in fact in the conduct of the transaction | MCL 565.955(1); MCL 565.960 |
| Fraud and silent fraud | The Act does not limit disclosure obligations that exist under other law about fraud, misrepresentation or deceit. A seller with personal knowledge who fails to disclose in good faith can face a fraud or silent fraud claim | Six years, running from the wrong and not from discovery. If the seller fraudulently concealed the claim, 2 years after discovery or when it should have been discovered | MCL 565.961; MCL 600.5813; MCL 600.5827; MCL 600.5855; Boyle, 468 Mich 226, 231-232 (2003); Roberts, 280 Mich App 397 (2008) |
| Innocent misrepresentation | Not a theory of liability for a disclosure made on the statement. An as is clause also bars it | The as is clause is read as written, alongside the statute | Roberts, 280 Mich App 397 (2008); Coosard, 342 Mich App 620 (2022) |
| Environmental hazard question | Includes a substance that poses an unacceptable risk to health, safety or welfare in the soil, groundwater, air or building materials associated with the property, where there is an actual route to the property | Question of fact on what the seller knew and whether the buyer reasonably relied | Gholston, No. 367226 (Mich Ct App, June 10, 2025) (published) |
| Breach of the purchase agreement | A signed writing. A contract for the sale of land is void unless it or a note or memorandum of it is in writing and signed by the seller or by someone the seller authorized in writing | 6 years for breach of contract | MCL 566.108; MCL 600.5807(9) |
| Damage to the property | Injury to property caused by a wrongful act | 3 years | MCL 600.5805(2) |
The 72-hour window is short, and it has gaps. The statute gives a deadline for in-person delivery and for delivery by registered mail. It does not say what applies to delivery by email or another method, so I treat 72 hours from the moment the statement reached you as the deadline, and I write down the time. The right to terminate for a late statement ends when the deed is delivered. MCL 565.954(4). A buyer who closes and then learns of a late statement has lost that option, though not necessarily a fraud claim.
What the statement does and does not promise
The form tells the buyer, in capital letters and in plain text, what it is. It says the statement is not a warranty of any kind by the seller or by any agent, that it is not a substitute for inspections or warranties the buyer may want, and that the information is a disclosure only and is not part of the contract. MCL 565.957(1). It also tells the buyer to obtain inspections. The same form says that failing to give a purchaser a signed statement lets the purchaser terminate an otherwise binding purchase agreement.
That language is why a disclosure case is rarely a simple breach of warranty case. The seller does not promise the house is sound. The seller promises to answer honestly about what the seller knows. If the seller does not know something, the Act allows the seller to say it is unknown, and the information is to be based on the information available and known to the seller. MCL 565.956. The Court of Appeals has also said nothing in the Act requires a seller to exercise ordinary care to discover defects. Roberts v Saffell, 280 Mich App 397 (2008). A transfer is not undone just because someone did not follow the Act. MCL 565.964.
A seller may correct the record. A disclosure can be amended in writing, subject to the delivery rules in section 4, so an amendment delivered after the agreement is signed opens the same termination window as a late statement. MCL 565.962. In Gholston v Sherrill, No. 367226 (Mich Ct App, June 10, 2025), the court pointed out that the sellers could have amended their statement after they learned more and did not.
When a seller can be held liable for what the statement said
The personal knowledge line. Section 5 protects a seller from liability for an error that was not within the seller’s personal knowledge, and it says a seller does not violate the Act by failing to disclose what could be learned only through inspection of inaccessible portions of the property or by a person with training in a science or trade beyond the seller’s knowledge. MCL 565.955(1). Delivering a report that the buyer asked for from a licensed engineer, surveyor, geologist, structural pest control operator, contractor or other professional counts as compliance for that protection, unless the seller knows of a defect that contradicts the report. MCL 565.955(3). So the first question in every case is knowledge: what did the seller see, hear, repair, pay for or get told?
Fraud and silent fraud. In Roberts v Saffell, 280 Mich App 397 (2008), aff’d 483 Mich 1089 (2009), the Court of Appeals held that a buyer cannot recover for innocent misrepresentation on a disclosure made on the statement, because the Act protects a seller who lacked personal knowledge. The same court explained that where an item is specified for disclosure on the form, a seller can be liable for fraud or silent fraud if the elements of those claims are proved, including that the seller had personal knowledge and did not disclose it in good faith. In Gholston, the same court described both fraudulent misrepresentation and silent fraud as involving a seller’s knowing misrepresentation about a material fact, citing Roberts and Bergen v Baker, 264 Mich App 376. Each element has to be proved. That is where most of the work happens: repair invoices, earlier inspection reports, listing photographs, texts with the listing agent, neighbors, and the seller’s own answers in discovery.
Reliance. A buyer alleging fraudulent misrepresentation has to show that relying on the statement was reasonable. In Gholston v Sherrill, No. 367226 (Mich Ct App, June 10, 2025), the court did not accept that the buyers’ reliance was unreasonable as a matter of law, even though they had not inspected or researched public records. It noted that the sellers had affirmatively said there was no known hazard, and that a purchaser has no independent duty to investigate a seller’s affirmative representation. Whether reliance was reasonable on that record was a genuine issue of fact.
If you are the seller. The same rules protect you. If you completed the form yourself, answered from what you actually knew and marked “unknown” where you did not, section 5 and the good faith definition in section 10 are your starting point. A claim that you should have known is a different claim from a claim that you did know, and the Act speaks to the second. If you learned something after you signed the form, an amendment is the way to cover it. I read the form, the listing, your repair records and what you told the agents before I say how exposed you are.
As is clauses, inspections and what a signed purchase agreement changes
Most Michigan purchase agreements are written on a broker form, and the terms that matter in a dispute are often in the addenda: an inspection contingency with a deadline, an as is clause, a financing contingency, a deposit clause and a clause covering the condition of the home at closing. The Act does not replace any of them.
As is. In Lorenzo v Noel, 206 Mich App 682, 687 (1994), the Court of Appeals held that as is clauses allocate the risk of loss from conditions unknown to the parties, and also transfer the risk where a defect should reasonably have been found on inspection but was not. They do not transfer the risk where the seller made fraudulent representations before the buyer signed a binding agreement. Coosard v Tarrant, 342 Mich App 620 (2022) applied that rule to a fully integrated purchase agreement. The court held that an as is clause bars an innocent misrepresentation claim, but that it does not protect a seller against a fraud claim just because the buyer could have discovered the truth. To defeat the claim that way, it must have been reasonable to expect the buyer to find the defect on inspection and reasonable for the buyer to inspect in the first place. The buyers in Coosard still lost, because the Court of Appeals agreed that there was no question of fact on whether the seller knowingly misrepresented anything about the encroachment. An as is clause does not erase a knowing falsehood, but the buyer still has to prove what the seller knew.
A signed writing. A contract for the sale of land is void unless the contract, or a note or memorandum of it, is in writing and signed by the seller or by someone the seller authorized in writing. MCL 566.108. That matters in three places: a seller who backs out, a repair promise made after an inspection, and a credit promised at the walk-through. A promise that never made it into a signed amendment is hard to enforce.
The deed and what it replaces. Under the merger doctrine, a deed made in full execution of a contract for the sale of land is presumed to merge the provisions of the earlier contract. Johnson Family Ltd Partnership v White Pine Wireless, LLC, 281 Mich App 364 (2008). The doctrine has limits, since a court sitting in equity may reform a deed where the proofs warrant it, but the practical lesson is to settle repairs, credits and holdbacks in a signed amendment before the deed is delivered and not after.
Deposits. A buyer who tries to walk away without a contract right to do so risks the deposit. In Worley v McCarty, 354 Mich 599, 605 (1958), the Supreme Court enforced a clause that made the deposit the seller’s liquidated damages when the buyers did not complete the purchase. The deposit clause and the contingencies in your agreement decide the question, which is why I read the whole contract before I tell you whether to close, cancel or demand a fix.
How long you have to sue
The clock depends on how the claim is framed, and the label and the date of the wrong decide which one applies. A claim for breach of contract has 6 years. MCL 600.5807(9). A claim for injury to property has 3 years. MCL 600.5805(2). Fraud falls in the 6-year period for other personal actions. MCL 600.5813. A claim accrues when the wrong was done, regardless of when damage results. MCL 600.5827.
In Boyle v General Motors Corp, 468 Mich 226, 231-232 (2003), the Supreme Court held that a fraud claim accrues when the wrong is done and not when the plaintiff discovers it, and it rejected a discovery rule for fraud. For a buyer, that can mean the six years began at closing, not when the leak showed up. There is one statutory protection: when a person liable on a claim fraudulently conceals it, the action may be brought within 2 years after the plaintiff discovers or should have discovered it, even though the ordinary period has run. MCL 600.5855. I do not rely on that extension. I calculate the earliest deadline that could apply and work back from it.
The termination right for a late disclosure is different. It is measured in hours, and it ends when the deed is delivered.
How I handle a seller disclosure or home purchase dispute
- Get the transaction file. I collect the listing, the signed disclosure statement and every amendment, the purchase agreement and addenda, the inspection report, the closing documents and every message with the agents and the seller.
- Fix the dates. I record when the statement was delivered and how, when the agreement became binding, the closing date and the date each problem was found.
- Compare the form to the house. I line up each answer on the statement against the inspection report, repair estimates and photographs.
- Find out what the seller knew. I look for invoices, permits, insurance claims, earlier inspections, neighbors and statements the seller made to the agents.
- Check the contract. I read the as is clause, the contingencies, the deposit clause and any integration or release language before choosing a claim.
- Send the demand or answer the one you received. A demand letter lays out the facts, the claims and the amount. For a seller, the response states what you knew and when.
- File and prepare. If the dispute does not resolve, I file in the right court, take the seller’s deposition, and prepare the case for trial.
Ways a seller disclosure dispute may end without a trial
Many of these cases end by agreement. A seller who sees the repair invoices and the text messages may pay for the repair or agree to a price adjustment. Some end with a payment and a mutual release. A buyer who is still before closing may terminate within the statutory window and recover the deposit if the agreement provides for it, or negotiate a credit in a signed amendment. In the cases that are tried, the questions are knowledge and reliance. Those are fact questions, which is why the Court of Appeals reversed summary disposition in Gholston. Whether any of this is available depends on the documents, the dates and the other side.
What I need from you
Bring the listing or the printout of it, the seller’s disclosure statement and anything the seller or an agent gave you with it, the signed purchase agreement and every addendum, and the closing documents. Bring the home inspection report and any later inspections, repair estimates, invoices and photographs. Write down the date and time you received the statement and how it was delivered, the date you closed, and the date you first saw each problem. Save every text and email with the agents and the seller, and do not delete anything. Do not start repairs that destroy the evidence until we have talked, and do not post about the dispute online. If you are a seller, bring your copy of the statement you signed, your repair and insurance records, and the messages with your agent.
Where your Kent County home purchase case will be heard
I represent clients in Grand Rapids, Kentwood, Grandville, Wyoming and across Kent County. Under MCL 600.8301(1), the district court has exclusive jurisdiction in civil actions when the amount in controversy does not exceed $25,000. Michigan law sets the Kent County district courts by municipality. The 61st District Court serves the city of Grand Rapids, the 59th serves the cities of Grandville and Walker, the 62A serves the city of Wyoming and the 62B serves the city of Kentwood. MCL 600.8128a; MCL 600.8130(1)-(3). The 63rd District Court serves the rest of Kent County, which includes the cities of Rockford, Lowell, Cedar Springs and East Grand Rapids and the surrounding townships. MCL 600.8130(4). The circuit court for Kent County is the 17th Judicial Circuit. MCL 600.518. I look at the amount in controversy and the relief you want before I tell you where a case belongs.
Why people hire me for a Michigan seller disclosure matter
You work directly with me, the lawyer handling your case. I tell you where the case is strong and where it is thin, including what the seller will say about knowledge and reliance, what it could cost to pursue and what it could recover. I do not promise outcomes. I build the case the documents support, and then we decide together how to proceed.
My fee depends on the type of case, how complicated it is and whether it is likely to go to trial. We talk about the fee at the consultation, before you decide whether to hire me.
Questions I hear from people with a seller disclosure or home purchase problem in Michigan
What is Michigan’s seller disclosure statement and when does the seller have to give it to me?
For residential property with 1 to 4 dwelling units, the seller must deliver a written seller’s disclosure statement before signing a binding purchase agreement. The Seller Disclosure Act, MCL 565.951 and following, covers sales, installment land contracts, and lease-options. The seller completes a standard form that reports conditions the seller actually knows about.
What if the seller gave me the disclosure statement after I signed the purchase agreement?
Under MCL 565.954(3), if the disclosure or an amendment is delivered after a binding purchase agreement is signed, the buyer may terminate the agreement by written notice delivered within 72 hours after the statement was delivered in person, or within 120 hours after it was delivered by registered mail. The right to terminate ends when the property is transferred.
The seller’s disclosure statement said no water problems, but my basement floods. Is the seller automatically liable?
Not automatically. MCL 565.955(1) says a seller is not liable for an error, inaccuracy, or omission that was not within the seller’s personal knowledge, and a seller does not violate the act by failing to disclose what could be learned only by inspecting inaccessible areas or by someone with specialized training. If the seller knew and answered falsely, fraud claims may be available.
Does ‘buyer beware’ mean I have no claim if the seller hid a defect in my Michigan home?
No. Caveat emptor is the common-law rule for real estate sales, but Michigan recognizes exceptions. The Court of Appeals in Roberts v Saffell identified common-law fraud, silent fraud, and, outside the Seller Disclosure Act context, innocent misrepresentation as exceptions to caveat emptor in real estate transactions.
Does an as is clause protect a Michigan seller from a claim for hidden defects?
Partly. An as is clause shifts to the buyer the risk of conditions that were unknown or that a reasonable inspection would have revealed, but it does not protect a seller who made fraudulent representations before the buyer signed the agreement.
The home inspection found problems after I signed. Can I cancel or ask for repairs under the inspection contingency in Michigan?
Only if the purchase agreement contains an inspection contingency, and then only by following its terms. The right to cancel or to ask for repairs comes from the wording of the clause, its deadline and its notice requirement, and any repair deal should be put in a signed amendment.
The home was not in the promised condition at the final walk-through. What can I do in Michigan?
The options come from the purchase agreement. Before closing, the buyer can put the problem in writing and ask for a repair or credit in a signed amendment, and can decline to close only if the agreement made the condition a requirement. After closing, the deed is presumed to take the place of the purchase agreement, which is why the issue should be settled first.
How long do I have to sue after buying a Michigan home with hidden defects?
It depends on the claim. A claim for breach of contract is 6 years, a fraud claim falls in the 6-year catch-all, an injury-to-property claim such as negligence is 3 years, and a claim against the contractor who built an improvement has its own 6-year limit from occupancy or acceptance. A fraudulently concealed claim can be brought within 2 years after discovery.
Related Michigan pages
- Grand Rapids real estate attorney
- Construction liens and builder disputes
- Deeds and title defects
- Foreclosure defense
- Fraud and misrepresentation
- Breach of contract
- Michigan legal FAQs
I represent homeowners in seller disclosure and home purchase disputes in Kent County and West Michigan. Contact me 24/7 by phone or email. Your Rights, My Fight! Call for a free initial consultation.
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Law Offices of Mitchell S. Bisson, 2828 Kraft Ave SE, Suite 295, Grand Rapids, MI 49512, serving Kent County and West Michigan.
This page provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and every case turns on its own facts. Consult a licensed attorney about your specific situation.