Home sellers have a distinct obligation to disclose issues with the property. Under Michigan law, they generally have to let potential buyers know about any known issues.
This doesn’t necessarily mean that the seller is obligated to know about everything. There could certainly be issues or defects with the house that come up during a home inspection that the seller just didn’t know about prior to that inspection. But if they do know, then they must make an accurate report. Here are a few examples of things they may need to include.
Environmental issues
To start with, if there are any environmental hazards, they need to be reported. Perhaps the homeowner carried out a radon test and found elevated levels of radon in the basement. Or maybe there has been exposure to other sorts of toxic chemicals or substances.
Fire and water damage
House fires and significant leaks or flooding can both cause serious issues and structural damage. Sellers must disclose any past issues and the damage they’ve caused, along with the repairs that have been carried out. But a seller cannot simply try to hide the damage, such as painting over water damage to make it less obvious.
Pest infestations
Finally, even if they have been eradicated, pests need to be reported. Perhaps the home previously had a termite infestation, for example. This can cause significant damage to the house that may still be hidden within the walls, so buyers need to know that the infestation happened previously.
Conflicts can sometimes arise during a real estate transaction, especially if there are allegations that proper disclosures were not made. Those involved must understand all of their legal options.