What to Include in Your Disclosure Statement to Avoid Legal Issues

By Gwen Daubenmeyer

Gwen Daubenmeyer is the founder of our team. She brings an unwavering commitment to her clients and a get-it-done attitude. Gwen is unapologetically competitive. Marketing and negotiation are her Olympic events; if she could medal, she would. While winning is her “what,” her clients are her “why.”

Disclosure statements must be handled with care, but when done without caution, it can lead to potential legal issues. This is the worst-case scenario when selling your home, so it is crucial to provide a comprehensive disclosure statement for a smooth transaction.

Your ultimate goal here is transparency. In Michigan and many other states, sellers are required to provide a property disclosure to add transparency to the buying process. Here are the key elements you need to disclose to increase transparency and ensure that you won’t find yourself in a legal limbo:

1. Disclose your HOA details. If your property is part of a homeowner’s association, it’s essential to disclose this information. HOAs often impose monthly fees and specific rules that may affect potential buyers. You should also provide details about the HOA’s financial health by including a financial statement, so buyers can make an informed decision about whether they are comfortable with the association’s terms.

2. Disclose your repair history. Repairs are not only good for your home’s condition but also a good recipe for increasing transparency. Share details on major structural issues, insurance claims, and completed repairs. Buyers will likely find this information during inspections or insurance applications. Providing a complete repair history—especially for electrical or plumbing issues—helps buyers understand the home’s condition.

3. Disclose lead-based paint hazards. The devil’s in the details, especially in the paintwork. If your home was built before 1978, get the wall paint checked for the presence of lead. Include an EPA pamphlet titled “Protect Your Family from Lead in Your Home” and allow buyers 10 days for risk assessment. This ensures compliance and helps buyers make informed decisions.

The golden rule of property disclosure is to disclose everything you know about what you’re selling. If you have any doubts about what needs to be disclosed, don’t hesitate to reach out to the Integrity Team. Contact us at 833-333-4936 or gwen@theintegrityteam.com for any questions. We’re available every day and look forward to assisting you!