What Do I Need To Do To Sell My House In Detroit MI?

Whether you are selling traditionally through an agent, selling by owner, or selling directly to a cash buyer, these requirements apply. Understanding them in advance prevents surprises at closing and ensures you are selling in full compliance with Michigan law.

Requirement 1: The Michigan Seller’s Disclosure Statement

Michigan law (MCL 565.951 through 565.965) requires sellers of residential property to complete and deliver a Seller’s Disclosure Statement to the buyer before or when the purchase offer is accepted. This document asks the seller to disclose known material defects and conditions affecting the property, covering items such as the roof, foundation, basement, electrical system, plumbing, HVAC, environmental concerns, drainage, and any pending legal actions or neighborhood conditions that could affect the property’s value or desirability.

The disclosure requirement applies to most residential sales in Michigan, with limited exceptions for transfers between certain family members, transfers by court order (such as probate sales), foreclosure sales, and a few other narrow categories. If you are selling your primary residence in Metro Detroit through a standard transaction, you are almost certainly required to complete this form. Critically, the requirement is to disclose what you know - you are not required to conduct inspections or discover defects you were unaware of. But if you know about a problem, you must disclose it. Failure to disclose known material defects can expose sellers to legal liability after closing.

The buyer, upon receiving the disclosure, has the right to rescind the purchase offer within a defined period. The disclosure does not guarantee the property’s condition - it documents what the seller knows. In Chesterfield Township and throughout Macomb County, experienced agents and buyers are accustomed to seeing disclosure statements with known defects noted - this is preferable to attempting to minimize or conceal issues that a buyer will likely discover during inspection anyway.

Requirement 2: Federal Lead-Based Paint Disclosure

For any residential property built before 1978, federal law (the Residential Lead-Based Paint Hazard Reduction Act) requires the seller to:

• Provide the buyer with the EPA pamphlet "Protect Your Family From Lead in Your Home"
• Disclose any known lead-based paint or lead-based paint hazards in the property
• Provide buyers with any available records or reports pertaining to lead paint in the home
• Give buyers a 10-day window to conduct a lead-based paint inspection or risk assessment (buyers can waive this in writing)
• Attach a lead-based paint disclosure addendum to the purchase agreement, signed by both parties

Given that much of Metro Detroit’s housing stock was built before 1978 - particularly in older neighborhoods of Detroit proper, and in established suburbs like Dearborn and Ferndale where homes from the 1940s, 1950s, and 1960s are common - this requirement applies to a significant percentage of local transactions. The disclosure does not require sellers to remediate lead paint. It requires them to disclose known information and give buyers the opportunity to test. Penalties for failure to comply with the federal lead disclosure requirement can be significant, including civil fines and potential damages to the buyer.

Requirement 3: Clear Title at Closing

To transfer ownership of a property in Michigan, you must be able to convey clear title - meaning no unresolved liens, judgments, or encumbrances that would prevent a clean transfer of ownership. This is not discretionary. A buyer (and their lender, if financing) will require a title search and title insurance, and the title company will identify any clouds on title before closing. If clouds exist, they must be resolved before the transaction can close.

Common title issues in Metro Detroit include unpaid property taxes and special assessments (particularly relevant given Wayne County’s tax delinquency history), contractor liens or mechanic’s liens from unpaid repair work, judgment liens from court judgments against the owner, mortgage liens (which are paid off at closing from sale proceeds in a standard sale), estate issues where the title has not been properly transferred from a deceased owner, and IRS or state tax liens. None of these necessarily prevent a sale, but they must be addressed - either paid off, negotiated down, or resolved through legal process - before closing can proceed.

In New Haven and throughout Macomb County, a standard title search takes 3 to 5 business days. If the title comes back clean, the transaction proceeds normally. If issues are found, the title company will communicate what needs to be resolved and whether it can be handled through the closing (for example, by paying off a lien from proceeds) or requires legal action (such as a quiet title action to resolve a disputed ownership claim).

Requirement 4: Michigan State Transfer Tax (SRETT)

Michigan imposes a state real estate transfer tax (SRETT) on property sales. The rate is $7.50 per $1,000 of the purchase price (or $3.75 per $500). This tax is typically paid by the seller at closing. On a $200,000 sale, the SRETT is $1,500. On a $350,000 sale, it is $2,625. The tax is computed on the stated consideration in the deed and must be paid when the deed is recorded with the county register of deeds.

There is a principal residence exemption from the state transfer tax available to sellers who owned the property as their principal residence for at least half of the five years preceding the sale. This exemption must be claimed on the appropriate Michigan Treasury form at or before closing. Sellers who qualify and properly claim the exemption pay no state transfer tax, which represents meaningful savings on any sale. If you are selling your primary home and have lived there for a substantial portion of the past five years, verify with your closing agent whether you qualify - this is one of the most commonly overlooked savings in Michigan residential transactions.

Requirement 5: County Transfer Tax

In addition to the state SRETT, Michigan counties impose their own real estate transfer tax. In Wayne County (Detroit, Dearborn, Westland, and most Metro Detroit communities), the county transfer tax is $1.10 per $1,000 of purchase price. Oakland County (Troy, Royal Oak, Farmington Hills) and Macomb County (Sterling Heights, Chesterfield, Clinton Township) have the same rate. The county transfer tax is also paid by the seller at closing and is computed on the same consideration as the state tax. On a $200,000 sale in Wayne County, the county tax is $220.

Combined, the state SRETT and county transfer tax total $8.60 per $1,000 of purchase price for Michigan residential sales in Metro Detroit (assuming the seller does not qualify for the principal residence SRETT exemption). For a $300,000 sale, that is $2,580 in combined transfer taxes payable at closing.

Requirement 6: A Legally Valid Purchase Agreement

Michigan does not require a specific form of purchase agreement for residential sales, but the agreement must be in writing and must meet basic contract requirements: offer and acceptance, consideration, and sufficiently definite terms (property description, price, closing date). Michigan REALTORS publish standard purchase agreement forms used by most licensed agents in Metro Detroit. FSBO sellers often use the same forms or work from attorney-drafted agreements.

The purchase agreement governs the transaction - it specifies the price, contingencies (financing, inspection, appraisal), timeline, what stays with the property (fixtures vs. personal property), and the responsibilities of each party through closing. Errors or omissions in the purchase agreement are among the most common sources of disputes in residential transactions. If you are selling without an agent, have a Michigan real estate attorney review your purchase agreement before signing.

Requirement 7: Deed Preparation and Recording

To legally transfer ownership of a Michigan property, a deed must be prepared, signed by the seller(s), notarized, and recorded with the county register of deeds. In Michigan, the most common deed forms for residential sales are the warranty deed (which provides the buyer with guarantees about title) and the quitclaim deed (which conveys whatever interest the seller has, with no title warranties). Warranty deeds are standard in arm’s-length sales. Quitclaim deeds are more commonly used in estate transfers, divorce settlements, and other non-standard conveyances.

The deed must include the legal description of the property (not just the street address), the names of the grantor(s) and grantee(s), the consideration paid, and the transfer tax valuation certification. Recording fees vary by county but are generally modest - Wayne County charges $15 for the first page and $3 for each additional page. The deed is typically prepared by the closing title company as part of the closing package.

Property Tax Proration: What Sellers Owe at Closing

Michigan property taxes are billed and paid in arrears in two installments: a summer tax bill (typically due in July or August) covering the first half of the tax year, and a winter tax bill (typically due in December) covering the second half. Because taxes are paid after the period they cover, sellers typically owe the buyer a credit at closing for the portion of the current tax period attributable to the seller’s ownership. This is called property tax proration.

How the proration works in practice depends on where you are in the tax calendar when you close. If you close in September, for example, and the summer taxes have already been paid, you owe the buyer a credit covering the portion of the winter tax period from January 1 through your closing date - because those taxes, when the winter bill arrives in December, will cover a period when you still owned the property. The closing title company calculates this proration automatically as part of the settlement statement, but sellers should understand the concept and verify the calculation reflects the actual tax amounts for their specific property and municipality.

In Wayne County and across Metro Detroit, property tax rates vary significantly by municipality - City of Detroit rates are substantially higher than those in suburban communities like Troy, Canton, or Rochester Hills. For sellers of properties with high assessed values or high millage rates, the tax proration credit can be several thousand dollars and is a meaningful component of the closing statement. If you are behind on property taxes, those delinquent amounts will also be paid from sale proceeds at closing before any net proceeds are disbursed to you. Wayne County tax liens are given priority at closing and cannot be ignored.

Special Situations: Estate Sales, Trust Sales, and Divorce

Standard requirements apply to all sales, but certain ownership situations add additional legal requirements:

• Estate sales: If a property is part of a deceased person’s estate, the personal representative (executor or administrator) must have Letters of Authority from the probate court authorizing them to sell real property. Without this authority, the personal representative cannot legally sign a deed. If the estate has not been formally opened in probate, this must be done before the sale can proceed.
• Trust sales: If the property is held in a trust, the trustee must be properly authorized to sell under the trust document. The buyer and title company will require a copy of the relevant trust provisions, or a Certification of Trust, to verify the trustee’s authority.
• Divorce sales: Both spouses must sign the deed if both are on title. If a divorce decree assigns the property to one spouse, the decree or a separate quit claim deed from the non-retaining spouse must be recorded before that spouse can sell without the other’s signature. Disputed title following divorce is a common source of closing delays in Metro Detroit.
• Multiple owners: If a property is owned by more than one person (tenants in common or joint tenants), all owners must typically sign the deed. If one owner is deceased, the method of clearing their interest depends on how title was held.

What You Are NOT Required to Do

There are several things commonly assumed to be requirements that are actually discretionary or only apply in specific circumstances:

• Pre-listing inspections: Michigan does not require sellers to obtain a home inspection before selling. Buyers typically order their own inspections as a purchase contingency. A pre-listing inspection is a strategic choice, not a legal requirement.
• Repairs: You are not legally required to make repairs before selling in Michigan. The seller’s disclosure requires you to disclose known defects; it does not require you to fix them. What happens as a result of disclosed (or discovered) defects is a negotiation between buyer and seller.
• Staging or cosmetic improvements: These affect sale price and time on market, not legal compliance.
• Using a real estate agent: Michigan does not require sellers to use a licensed real estate agent. FSBO sales are legal. If you choose not to use an agent, you are responsible for completing all the legal steps yourself or with the help of a real estate attorney and title company.
• A for-sale sign or MLS listing: There is no legal requirement to list publicly or market through any specific channel.

How a Cash Sale Changes the Experience (Not the Requirements)

Selling directly to a cash buyer like Chris Buys Homes Detroit does not eliminate the legal requirements described above - the Seller’s Disclosure, lead paint disclosure (if applicable), transfer taxes, and deed recording still apply to every sale. What changes is how much of the process the buyer handles on your behalf and how quickly the closing occurs. In Hazel Park and throughout Wayne and Oakland Counties, a cash buyer typically coordinates the title search, orders the title insurance, prepares the closing documents, and manages the timeline - reducing the seller’s administrative burden significantly compared to a self-managed FSBO transaction.

The requirement that does not apply in a cash sale to a buyer who waives it: the home inspection contingency. Cash buyers purchasing as-is accept the property in its current condition, which means no formal inspection contingency, no post-inspection repair requests, and no risk of the deal falling apart over condition issues. The Seller’s Disclosure is still completed and delivered, because that is a Michigan statutory requirement that cannot be waived by the buyer (for standard residential sales covered by MCL 565.951).

If you have questions about what specifically applies to your property - particularly if there are title complications, estate issues, or deferred maintenance you are unsure how to handle - Chris Buys Homes Detroit can walk you through the process. Contact us or call (313) 362-4747. We work with homeowners throughout Metro Detroit who want a clean, well-documented sale and a fresh start without the complexity of navigating the process alone.