State guide

Buying or Selling a Home in Michigan: What You Need to Know

Michigan's home-buying process runs on a mandatory Seller's Disclosure Statement, title-company closings (no attorney required), and a property tax system that 'uncaps' when a home changes owners — so new buyers usually pay more tax than the seller did.

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TL;DR

Michigan's home-buying process runs on a mandatory Seller's Disclosure Statement, title-company closings (no attorney required), and a property tax system that 'uncaps' when a home changes owners — so new buyers usually pay more tax than the seller did. Since the settlement took effect in August 2024, Michigan buyer's agents need a signed written agreement spelling out their pay before showing any home on the . The state also adds fair-housing protections beyond federal law, sellers typically cover transfer taxes at closing, and the Principal Residence Exemption can shave a meaningful chunk off your annual tax bill on your main home.

9 things every Michigan buyer or seller should know

  • Michigan law requires the seller of any home with four or fewer units to fill out and deliver a written Seller's Disclosure Statement covering the property's known condition before the buyer signs the purchase agreement.

  • If a Michigan seller delivers the Seller's Disclosure Statement after the buyer has already signed an offer, the buyer has 72 hours from actually receiving the form to cancel the deal and get their earnest money back.

  • Michigan is a title-company-closing state, which means a title company — not an attorney — usually handles signing, recording the deed, and disbursing funds at a standard residential closing; hiring a lawyer is optional for either side.

  • When you buy a home in Michigan, your property tax bill will usually be higher than what the seller was paying because of 'uncapping' — Michigan's Proposal A caps yearly increases for the current owner, but the cap resets to roughly half of market value when the home transfers.

  • Michigan's Principal Residence Exemption (PRE) removes about 18 mills of school operating tax from the bill on the home you actually live in; buyers file the PRE affidavit with the local assessor after closing, and sellers must rescind theirs on the home they're leaving.

  • Michigan sellers typically pay real estate transfer taxes at closing: a state tax of $3.75 per $500 of sale price plus a county tax of $0.55 to $0.75 per $500, which adds up to roughly $2,580 on a $300,000 home in most counties.

  • Michigan's Elliott-Larsen Civil Rights Act bans housing discrimination on more grounds than federal law — including marital status, age (18 and older), sexual orientation, and gender identity — in addition to race, color, religion, sex, national origin, disability, and familial status.

  • Since the NAR settlement took effect on August 17, 2024, a Michigan buyer's agent must have the buyer sign a written buyer agency agreement that spells out how the agent will be paid before showing any home listed on the MLS.

  • Buying or selling a Michigan condominium comes with extra paperwork on top of the Seller's Disclosure Statement — the Michigan Condominium Act requires the seller to hand over the master deed, bylaws, association rules, recent financials, current budget, and any pending special assessments before the purchase agreement becomes binding.

The guides

Common questions

Do I need a lawyer to close on a home in Michigan?
No. Michigan is a title-company-closing state, so a title company handles signing the documents, recording the deed, and disbursing funds at a typical residential closing. Either side can hire an attorney if they want one, but most buyers and sellers don't — lawyers are usually brought in for more complicated situations like estate sales, divorces, or mixed-use property.
Why will my Michigan property tax bill be higher than what the seller pays now?
Michigan's Proposal A caps a current owner's yearly tax increases at the lesser of 5% or the inflation rate, so longtime owners often pay tax on a Taxable Value far below what the home is actually worth. When the home transfers to you, that cap is lifted — the assessor 'uncaps' the value back to about half of market value — and your tax bill can jump well above the seller's old one.
What is Michigan's Principal Residence Exemption (PRE)?
The Principal Residence Exemption is a Michigan tax break that removes the school operating portion of property tax — generally about 18 mills — from the home you own and live in as your main residence. Buyers should file the PRE affidavit with the local assessor after closing on a home they'll live in, and sellers should rescind the PRE on the home they're leaving so the tax records stay accurate.
What do I have to disclose when I sell my home in Michigan?
Michigan's Seller Disclosure Act requires sellers of homes with four or fewer units to complete and deliver a written Seller's Disclosure Statement before the buyer signs a purchase agreement. The form covers the property's known condition — roof, plumbing, electrical, environmental hazards, HOA obligations, and more — and while it's officially an informational document, knowingly hiding a defect can be treated as misrepresentation and create liability after closing.
How much will I owe in transfer taxes when I sell a home in Michigan?
Michigan charges a state transfer tax of $3.75 per $500 of the sale price and a county transfer tax of $0.55 to $0.75 per $500, both due at closing and typically paid by the seller. On a $300,000 sale, that's about $2,250 in state tax plus roughly $330 in county tax — somewhere around $2,580 total in most Michigan counties.
Do I really have to sign a buyer agency agreement before I can tour homes?
Yes, if the home is listed on the MLS. The NAR settlement that took effect on August 17, 2024 requires buyer's agents affiliated with an MLS-participating brokerage to have a signed written buyer agency agreement — including how the agent will be paid — before showing the buyer any MLS-listed property in Michigan.
What happens if the seller gives me the disclosure statement after I've already signed the offer?
Michigan gives the buyer a 72-hour rescission right when the Seller's Disclosure Statement is delivered after the purchase agreement is signed. You can cancel the deal and get your earnest money back as long as you act within 72 hours of actually receiving the form, so keep proof of when it was delivered.
Is buying or selling a Michigan condo different from a single-family home?
Yes. The Michigan Condominium Act adds a layer of disclosure on top of the regular Seller's Disclosure Statement. Before the purchase agreement becomes binding, the seller must give the buyer the master deed, bylaws, association rules, recent association financials, the current operating budget, and notice of any pending special assessments or association lawsuits.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.