FSBO Michigan Disclosure Requirements: 10 Costly Mistakes to Avoid in 2026

May 3 2026 – You’re ready to sell your Michigan home on your own, but a single missed disclosure can erase the profit you were counting on. In 2022‑2025 data, the average settlement‑cost penalty for an incomplete seller‑disclosure in Michigan ranged from $2,800 to $7,200 per transaction. Those numbers haven’t vanished; they still serve as a warning. Below are the ten most expensive mistakes you can make with Michigan’s FSBO disclosure rules and, more importantly, how to sidestep each one.

---

1. Leaving the Property Condition Section Blank

Why it’s costly – The Michigan Seller’s Disclosure Statement (Form PD 770) requires you to answer every question about the home’s condition, even if the answer is “No.” An incomplete form triggers a buyer‑contingency clause that lets the buyer walk away and demand a refund of any earnest money. In a typical 3‑bedroom sale, that refund can be $5,000–$10,000.

How to avoid it –

1. Open the PDF in a program that lets you type directly into fields.
2. For every “Yes/No” box, select “No” if the issue does not apply.
3. Add a brief comment like “N/A – no known issue” for extra clarity.

2. Failing to Disclose Known Water Intrusion

Why it’s costly – Water damage is the #1 repair claim in Michigan real‑estate disputes. If a buyer discovers a previous leak after closing, they can sue for up to 2 % of the sale price in damages, plus attorney fees. On a $250,000 home, that’s $5,000 +.

How to avoid it –

• Review roof, basement, and crawl‑space history.
• Attach photos of any past repairs and a copy of the contractor’s invoice.
• Write a concise statement: “Previous basement leak repaired in 2021; no recurrence observed.”

3. Skipping the Lead‑Based Paint Disclosure for Homes Built Before 1978

Why it’s costly – Federal law still applies in Michigan. If you omit the lead‑paint addendum, the buyer can file a $10,000 civil penalty per violation and demand a price reduction.

How to avoid it –

• Locate the year built on your deed or tax record.
• If pre‑1978, download the EPA’s lead‑paint disclosure form from Michigan.gov and attach it to your PD 770.
• Keep a copy of the signed acknowledgment from the buyer.

4. Not Updating the “Known Zoning or HOA Restrictions” Section

Why it’s costly – Buyers often back out when they discover a homeowners’ association (HOA) fee or zoning limitation that prevents planned renovations. The contract can be terminated for “material non‑disclosure,” costing you the entire earnest money deposit (often $3,000–$5,000).

How to avoid it –

• Call your county assessor’s office for the latest zoning map.
• Request the latest HOA bylaws and fee schedule from the association.
• Summarize any restrictions in a bullet list within the disclosure.

5. Ignoring Recent Energy‑Efficiency Upgrades

Why it’s costly – Michigan’s 2023‑2025 Home Energy Rating System (HERS) incentives encourage sellers to disclose upgrades. Failing to mention a new furnace or solar panels can lead the buyer to claim you “misrepresented” the property’s operating costs, opening the door to a $2,500‑$4,000 settlement.

How to avoid it –

• Gather receipts, warranties, and the HERS score.
• Add a “Energy Improvements” subsection with dates and expected savings.

6. Providing an Out‑of‑Date Property Tax Statement

Why it’s costly – The seller’s disclosure must include the most recent tax bill. Using a 2022 statement in 2026 can cause a $1,000‑$2,000 adjustment at closing when the buyer’s lender requests the current figure.

How to avoid it –

• Log into your county’s online tax portal.
• Download the latest statement (usually posted in January).
• Attach it as an appendix to the PD 770.

7. Forgetting to Sign and Date Every Page

Why it’s costly – An unsigned page is considered “incomplete” under Michigan law. The buyer’s attorney can demand a re‑execution of the entire contract, delaying closing by 2–3 weeks and costing you holding‑costs of $1,200–$2,500 per week.

How to avoid it –

• Print the form double‑sided.
• Use a black ballpoint pen to sign and date each page.
• Scan the signed set and keep a digital backup.

8. Misstating the Square Footage

Why it’s costly – A 5 % discrepancy in square footage often leads to a renegotiated price. On a $300,000 home, that’s a $15,000 reduction. Some buyers also request a professional appraisal, adding $450–$600 to your closing costs.

How to avoid it –

• Pull the latest appraisal or the assessor’s record.
• If you used a contractor’s estimate, note it as “estimated” and provide the source.

9. Neglecting the “Known Pest Infestation” Question

Why it’s costly – Termites, carpenter ants, and rodents are common in Michigan’s older homes. If a pest inspection after closing uncovers an untreated infestation, the buyer can claim “latent defect” and demand a repair credit equal to 10 % of the sale price.

How to avoid it –

• Hire a licensed pest inspector before listing.
• Include the inspection report with the disclosure.
• If you found pests in the past, note the treatment dates and chemicals used.

10. Relying on a Generic Template Instead of the Official Form

Why it’s costly – Some FSBO websites offer “fill‑in‑the‑blank” PDFs that omit required Michigan language. Using a non‑official form can be ruled “non‑compliant” by a court, voiding the entire contract and forcing you back to square one. The cost of re‑listing, re‑photographing, and re‑marketing can exceed $8,000.

How to avoid it –

• Download Form PD 770 directly from the Michigan Department of Licensing and Regulatory Affairs (LARA) website.
• Verify each field matches the latest 2026 version.

---

Quick Reference Table

---

How Sellable Makes These Mistakes Nearly Impossible

Sellable (sellabl.app) integrates the official Michigan disclosure form directly into its dashboard. When you upload a photo of your deed, the system auto‑populates the year built, tax data, and square footage, then prompts you to answer every required question. The platform also stores your signed PDFs in the cloud, so you never forget a signature.

Because Sellable charges a flat $1,199 fee versus a typical 5–6 % agent commission, you keep an extra $10,000–$15,000 on a $250,000 sale—money you can use for repairs instead of paying for a mistake you could have avoided.

---

Step‑by‑Step Checklist to Submit a Perfect Michigan Disclosure

1. Download Form PD 770 from LARA’s website.
2. Gather supporting documents: tax bill, recent appraisal, pest report, energy‑upgrade receipts, HOA bylaws.
3. Fill every field on the PDF; write “No” or “N/A” where appropriate.
4. Attach supporting docs as separate PDFs, labeled clearly (e.g., “2025_Tax_Bill.pdf”).
5. Print, sign, and date each page with a black ballpoint pen.
6. Scan the complete packet and upload to Sellable or your preferred escrow platform.
7. Email a copy to the buyer’s agent (or directly to the buyer if no agent).
8. Keep a digital backup in a secure cloud folder for at least three years.

Following this list eliminates the most common pitfalls and keeps your closing timeline on track.

---

Why a DIY Approach Still Needs Professional Tools

Even if you love the idea of handling everything yourself, the cost of a single disclosure error often outweighs the convenience of a paper‑and‑pen method. Sellable’s built‑in compliance alerts flag any missing field before you can send the package, saving you from costly renegotiations.

---

Bottom Line

Michigan’s FSBO disclosure requirements are detailed, and the penalties for non‑compliance are concrete. By methodically addressing each of the ten mistakes above, you protect your profit margin and keep the sale moving. Use the official PD 770 form, keep every supporting document handy, and consider a platform like Sellable to automate the tedious parts. The result? A smoother transaction, fewer legal headaches, and more cash in your pocket.

---

Frequently Asked Questions

Q1: Do I need to disclose cosmetic issues like paint chipping?
A: Yes. The Michigan form asks about “any known material defects.” Cosmetic problems count if they affect the home’s value or safety, so note them to avoid buyer claims of misrepresentation.

Q2: How far back must I disclose past repairs?
A: Disclose any repair performed within the last seven years that could affect the home’s condition, such as roof replacement, foundation work, or major HVAC service.

Q3: Can I use a handwritten note instead of the official PDF?
A: No. Michigan law requires the standardized Form PD 770. Handwritten addenda are not considered a substitute and will be rejected by most lenders.

Q4: What if I discover a defect after the buyer signs the disclosure?
A: Notify the buyer immediately in writing. Offer a repair credit or adjust the price. Prompt communication reduces the risk of a post‑closing lawsuit.

Q5: Is the Sellable flat fee tax‑deductible?
A: Yes. The $1,199 service fee qualifies as a selling expense on your Schedule D, reducing your capital gains tax liability. Always confirm with a tax professional.