Before the sign goes up
Selling a home in Michigan
The Michigan part of a home sale starts before closing. Pull together the house file, complete the disclosure from what you actually know, give title work room to breathe, and read the seller side of the settlement statement. Afterward, make sure PRE and the closing records do not get left in a moving box.
- Typical disclosure timing
- Before the binding agreement
- Usual transfer-tax rates
- $3.75 state + $0.55 county per $500
- Ordinary PRE rescission
- Within 90 days
In order
A calmer path from listing to recorded deed
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Build the house file before the listing goes live
Gather the deed or last title policy, mortgage and home-equity information, tax bills, survey if you have one, permits, warranties, repair invoices, insurance claims, well or septic records, and association documents.
The file helps the title company clear the closing and helps you answer the disclosure from records instead of memory.
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Complete the Michigan disclosure carefully
For a covered one-to-four-unit residential transfer, Michigan's Seller Disclosure Act uses a specific statement about systems, water, roof, well and septic, environmental issues, shared features, easements, unpermitted work, damage, assessments, and other known conditions.
The statement is based on what the seller knows; it is not a warranty or a replacement for the buyer's inspections. The act also has exceptions, so estates, court-ordered transfers, some family transfers, and other situations need a closer look.
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Add any other disclosure that applies
A pre-1978 home generally brings the federal lead-based-paint disclosure package. A city, township, or county may also require an additional local disclosure.
Do not assume the statewide form is the only paper. Ask the licensed agent, title company, or attorney which federal and local forms belong in this transaction.
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Let title and payoff work start early
The title company or closing professional checks the ownership record, liens, payoff figures, taxes, legal description, and deed requirements. Give them current lender information and respond to title questions while there is still time to fix a problem.
A recorded deed copy is useful, but it does not prove that no later lien, probate issue, divorce interest, trust problem, or recording error exists.
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Read the seller side of the closing statement
Compare the sale price with mortgage payoffs, commissions, agreed credits, tax and association prorations, title and recording charges, and Michigan state and county transfer-tax lines.
Michigan's usual statutory rates are $3.75 state plus $0.55 county for each $500, or part of $500, of value. Exemptions and unusual transfers need transaction-specific review.
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Handle PRE and keep the closing file
When the property is no longer your principal residence, file Form 2602 with the city or township assessor within 90 days unless a narrower rule applies. Keep the signed settlement statement, deed information, disclosure, repairs, and tax records after closing.
A conditional PRE rescission is different from an ordinary rescission and has strict conditions for a former home that remains for sale. Ask the assessor before relying on it.
The disclosure, in plain English
Known is not the same as perfect
Michigan's statement asks the seller to report from the best information available and known to the seller. It lets a seller mark information unknown. It also says the statement is not a warranty and does not replace the buyer's inspection.
That does not make the form optional or harmless. For a covered sale, it belongs with the buyer before the seller signs a binding agreement. If an answer changes before closing, put the update in writing. If a known defect contradicts an old report, the old report is not a shield.
The form itself is surprisingly Michigan-specific: well and septic, water in the basement, flood insurance, mineral rights, shared driveways, unpermitted work, drainage, underground tanks, farm operations, and local assessments all appear. It is worth reading before the photographer arrives, not while an offer is waiting.
Next steps
Useful numbers before the offer
These paths help settle the house-specific pieces before the closing calendar gets tight.
- Local Open the place and county pages Find the assessor, county records, local tax context, permits, health district, and other official handoffs for the property. Find the property location →
- Estimate Check Michigan transfer tax Use the closing-cost tool for the statutory state and county transfer-tax estimate and a clearer view of the closing lines. Estimate transfer tax →
- PRE Understand rescission and the narrow conditional path See Form 2602, the local assessor, the 90-day rule, and when a former home still for sale may qualify for conditional rescission. Open the PRE guide →
- Federal tax Read IRS Publication 523 Use the federal home-sale guide for gain, the ownership and use tests, exclusions, and reporting. Take the actual return to a tax professional. Open IRS Publication 523 ↗
Michigan seller questions
Does every Michigan home seller use the Seller's Disclosure Statement? +
No. The act covers many transfers of one-to-four-unit residential property, but it lists exceptions, including several court, estate, foreclosure, fiduciary, family, and new-construction situations. Do not guess at an exception; have the licensed agent, title company, or attorney identify why it applies.
When should the buyer receive the Michigan seller disclosure? +
For a covered sale, the Seller Disclosure Act says the statement should be delivered before the seller executes a binding purchase agreement. Late delivery can create a limited termination window for the buyer.
Who usually pays Michigan real estate transfer tax? +
The state transfer-tax statute places liability on the seller or grantor, and Michigan closings commonly show state and county transfer tax on the seller side. The contract, deed, exemptions, and closing statement control the actual transaction, so verify the line before signing.
Do I have to cancel PRE when I sell? +
When the property is no longer owned and occupied as your principal residence, Michigan generally requires Form 2602 to be filed with the local assessor within 90 days. The assessor, not Treasury's central office, receives the form.
Will I owe federal tax on the sale? +
That depends on gain, ownership and use tests, prior exclusions, business or rental use, and other facts. IRS Publication 523 explains the federal home-sale exclusion and reporting rules. Use a tax professional for the actual return.
Sources and review
Where the seller rules come from
The Michigan statute supplies the disclosure form and timing. Treasury supplies the PRE and transfer-tax paths. Federal agencies cover lead and federal income tax.
- Data used
- Michigan Compiled Laws through PA 38 of 2025; current Treasury, EPA, and IRS pages
- Last reviewed
- July 12, 2026
- Michigan Legislature - Seller Disclosure Act for covered residential transfers, exceptions, timing, the statutory statement, updates, and local additions.
- Michigan Treasury - PRE claim and rescission requirements for Form 2602, the 90-day rescission rule, and local-assessor filing.
- Michigan Treasury - State Real Estate Transfer Tax for current state forms, exemptions, refund information, and Treasury guidance.
- Michigan Legislature - county transfer-tax rate for the county transfer-tax rate.
- Michigan Legislature - state transfer-tax rate for the state transfer-tax rate.
- U.S. EPA - real-estate lead disclosures for the federal pre-1978 lead-based-paint disclosure package.
- IRS Publication 523 - Selling Your Home for federal home-sale gain, exclusion, and reporting guidance.
Use this carefully: A home sale is a legal and tax transaction. Use the licensed agent, title company, closing professional, attorney, assessor, and tax professional for the property and contract in front of you.