Every house has its quirks, but when it comes time to sell, homeowners are often nervous about how their home’s flaws could impact a sale. Which begs the question, how much do you really have to share?

Read on to find out some of the things you do — and do not — need to disclose.

The seller disclosure statement
In Michigan, the Seller Disclosure Act outlines what information must be shared with buyers. The good news is that most of the information is consolidated into one comprehensive form – the seller disclosure statement. This form is essentially a checklist that verifies the working condition of all appliances and amenities, and also reviews the history of other structural systems.

Any sale of residential property of less than four units is subject to the Seller Disclosure Act. There are some exceptions, including certain deed transfers, the transfer of property ordered by the court, etc., but your REALTOR® can provide more information about that.

Michigan law require a seller to disclose what is personally known about the home, including any imperfections. However, this statement is not a warranty of any kind and should not serve as a substitute for a professional inspection.

While the form is pretty straightforward, there are a few areas to pay special attention to.

Environmental problems
While disclosure laws vary by state — and even by city — the federal Lead-Based Paint Hazard Reduction Act requires sellers nationwide to disclose information concerning lead-based paint and lead-based paint hazards in residential housing. No matter if you think the lead paint has been removed or not, it still needs to be disclosed.

REALTOR® Roger Weymouth, broker and owner of CENTURY 21 Cedarwood, says Michigan’s disclosure form also requires sellers to list known issues with radon gas, asbestos, formaldehyde, etc.

“Sellers must also disclose knowledge of fuel or chemical storage tanks and/or contaminated soil on a property,” he said. “For instance, if you have an older home that’s been converted to natural gas but has a buried oil tank still on the property, that information must be disclosed.”

Pests
As a seller, you are required by law to disclose any pest infestations or issues, including termites, carpenter ants, and other home destroying critters. And it’s important to note that you must provide the full history of previous infestations, even if they have been dealt with.

Death in a home
In some states, a murder or suicide needs to be disclosed, but Weymouth says Michigan does not legally require sellers to share this type of information.

“However, as a REALTOR®, if I know about it and am specifically asked, I will be honest,” he said. “REALTORS® adhere to a code of ethics in which we pledge to protect and promote the interests of our clients. And even though the obligation to our clients is primary, it does not relieve us of our duty to treat all parties honestly.”

Water issues
For Michigan homeowners, water in a basement or crawl space is a big concern. The seller disclosure specifically asks about water problems, but Weymouth says sellers often misunderstand this section.

“It asks if there has ever been ‘evidence of water,’” he said. “Sellers may think that only refers to water that leaked into the home from the outside due to flooding, but that’s not necessarily what is being asked. Let’s say your water heater rusted, or your sump pump went out, and you were left with water in your basement. That information needs to be disclosed. No matter where it came from, if there was ever evidence of water, it must be included.”

Other items
These are just a few of the key items you’ll be asked about on a seller disclosure, but you’ll also need to share information about things like HOA fees, flood insurance, mineral rights, structural modifications or repairs made without proper permits, grading problems, damage to the home from fire or weather, pending litigation, etc.

Failure to disclose
Remember, sellers are only required to disclose problems they know about. It’s not uncommon for a seller to check the “unknown” box on some of the questions. After all, if you don’t know about a problem, you can’t disclose it.

However, there are ramifications if a seller fails to share known information. If a seller violates disclosure laws prior to closing, the buyer can cancel the transaction. If after the closing the buyer finds out that the seller did not disclose a known problem, he/she has six months from the time of closing to act. In mid-Michigan, a real estate purchase agreement binds buyers and sellers to first attend mediation. If mediation is unsuccessful, the buyer could end up suing the seller for repair damages or fraud.

“The disclosure statement is really there to protect both parties,” said Weymouth. “To avoid any issues, I advise my sellers to be as open and honest as possible. If you’re questioning whether to disclose something, I would err on the side of caution and include it. When in doubt, it’s always best to disclose.”

This is just one of the many reasons why buyers and sellers should work with a trusted REALTOR®. REALTORS® are up to date on the latest laws and regulations and are experienced with the complex documents and paperwork. Visit the Greater Lansing Association of REALTOR®’s website at www.lansing-realestate.com for a list of experienced agents.