Can a Seller Hide Defects in Michigan?

Is it a crime for a home seller to hide house damage from a buyer? Yes, it is generally considered illegal for a home seller to intentionally hide significant damage from a buyer. This type of action can be classified as fraudulent misrepresentation. In real estate transactions, sellers are typically required to disclose any known defects or issues with the property that could affect the property's value or desirability. These disclosures must be made prior to the sale and are often documented on a seller's disclosure statement, which varies by state. In Michigan, as in many other states, sellers are legally obligated to disclose specific information about the condition of the property, including any known defects or problems. Failing to disclose such information, especially if the damage is significant and non-obvious, can lead to legal actions against the seller. These actions can include the buyer suing for damages, rescission of the sale— in other words, undoing of the sale— and potentially other penalties as well. If a buyer discovers that a seller has intentionally hidden damage after the purchase, it's advisable for them to consult a real estate attorney to explore what legal options are available. This could include seeking compensation for the cost of repairs, legal fees, and in some cases, punitive damages, depending on the severity and intent behind the seller's actions. So if you want specifics on what's included in a seller's disclosure, I have shot a whole separate video on that. Check it out here. That is— goes into a lot of detail and goes through the entire seller's disclosure statement. Filling out such a statement can be confusing. So if you want to see a long and boring video about how to fill out a seller's disclosure statement in the state of Michigan, check out the video.