Selling your home “For Sale By Owner” (FSBO) in Michigan can save you thousands in commission fees—but it also means you’re responsible for every legal detail. Here’s a simplified guide to help you avoid common legal missteps and ensure your sale is smooth and compliant.

Required Paperwork for FSBO Sales in Michigan

• Seller’s Disclosure Statement Required under the Michigan Seller Disclosure Act (MCL 565.951–565.966) must be provided to the buyer before signing a purchase agreement.

• Lead-Based Paint Disclosure Required for homes built before 1978 under federal law.

• Purchase Agreement A legally binding contract outlining the terms of the sale. Should include contingencies, financing terms, and closing details.

• Preliminary Title Report Identifies liens, encumbrances, or title defects. Obtainable from a title company.

• Deed Preparation A new deed must be drafted to transfer ownership. Typically handled by an attorney or title company.

• Real Estate Transfer Tax Form Michigan imposes a state transfer tax under MCL 207.505  and MCL 207.526. The seller usually pays this tax when recording the deed.

• Closing Statement (HUD-1 or Settlement Statement) Summarizes all financial aspects of the transaction. Required for transparency at closing.

Legal Requirements and Best Practices

• Disclose Everything Be honest and thorough in your Seller’s Disclosure. Failure to disclose known defects can lead to lawsuits.

• Comply with Fair Housing Laws Avoid discriminatory language or practices. Violations can result in serious penalties.

• Use Licensed Professionals While not required, hiring a real estate attorney or title company can prevent costly mistakes.

• File Properly All deeds and tax forms must be filed with the county Register of Deeds. Errors here can delay or invalidate the sale.

• Keep Records Retain copies of all documents for your protection.

How Attorney Ann Howard Can Help?

Attorney Ann Howard, based in Southfield, Michigan, has over 30 years of experience in real estate law. She specializes in FSBO transactions and ensures your sale is legally sound from start to finish. From drafting airtight contracts to filing deeds and disclosures, Ann helps you avoid costly mistakes and ensures every document is compliant and enforceable. With her guidance, you can close confidently—knowing your paperwork is complete and correct.

Q: Do I need to hire an attorney to sell my home FSBO in Michigan?

A: No, it’s not legally required—but it’s highly recommended. An attorney can draft or review contracts, disclosures, and title documents to protect your interests and ensure compliance with Michigan law.

Q: What happens if I don’t provide a Seller’s Disclosure Statement?

A: The buyer may cancel the sale, and you could face legal consequences under the Michigan Seller Disclosure Act. It’s a critical document that must be delivered before a binding agreement is signed.

Q: Can I handle the deed and transfer tax filing myself?

A: Technically yes, but mistakes can delay or invalidate the sale. It’s best to have a title company or attorney prepare and file these documents to ensure accuracy and compliance.