Why You Should Have an Attorney For Your Michigan Residential Real Estate Transaction

November 15th, 2025
Posted By
Bill Ager
Man signing closing statement contract with the assistance of an attorney. Michigan Residential Real Estate Transaction.

Michigan law does not require an attorney to represent parties in a residential real estate transaction; however, many states have laws that require an attorney represent parties in at least some part of the transaction. Although there is no requirement in Michigan, there is a consensus that it is highly recommended that attorneys assist buyers and sellers in residential real estate transactions so that the parties are provided comprehensive legal advice tailored to the specific transaction.

Real estate agents, who are paid commissions, cannot provide legal advice under Michigan law, and most all of the forms used by agents include a statement that they are not permitted to provide legal advice. In addition, many of the forms that agents use, including sale contract and purchase agreement forms, contain the statement: “All parties are advised to seek the advice of an attorney," a recognition that you should have an attorney in the transaction to protect your legal interest, which is beyond what real estate agents can provide.

There are important benefits to having an experienced Michigan real estate attorney on your side in what might be the largest financial investment of your life. An experienced attorney, serving as your legal advocate, will provide you with peace of mind, from start to finish, reviewing all documents and ensuring you understand all the paperwork.

Key reasons for having an experienced real estate attorney include:

  • Complying with State and Federal Disclosure Requirements. The Michigan Seller Disclosure Act requires a seller of residential property to provide a written Seller’s Disclosure Statement to a prospective buyer before a sales contract is signed. Failure to provide a buyer with a disclosure statement will enable a buyer to terminate an otherwise binding sales contract. Moreover, if after closing a buyer discovers that the Seller’s Disclosure Statement was not properly completed and contains material errors, omissions, or inaccuracies about the condition of the property, the buyer may have a civil cause of action against the seller for fraud and misrepresentation. Federal law also requires a seller of residential property to provide a prospective buyer a lead-based paint disclosure for houses built before 1978.

Although a home seller is required to furnish prospective buyers with disclosures about the known condition of a property, the burden is still on the buyer to conduct inspections to discover defects in the property. Both sellers and buyers benefit from an attorney’s oversight regarding the importance of the disclosure requirements in a transaction.

  • Review or Drafting Sales Contract. An attorney drafts or reviews sales contracts to ensure your interests are protected, whether as a seller or buyer. Typically, an attorney will review the contract with you to ensure you understand all the contract provisions and address any questions you may have, such as: whether all required contingencies are included in the contract and are drafted properly; the legal interpretation of contract language; and avoiding disputes.

Standardized forms used by real estate agents for the purchase agreement, may not include contingencies that are important to your transaction, such as: loan preapproval letters; specific inspections to the property; payment of closing cost; an approved survey showing boundaries without encroachments or: requiring an attorney’s approval of the contract language before the contract is legally binding.

  • Review the Owner’s Policy of Title Insurance. Conveying clear and marketable title is essential for a residential real estate transaction for both a buyer and seller. A real estate attorney examines the owner’s title policy commitment to determine the requirements for a seller to convey a clear and marketable title to a buyer. An attorney also reviews the “exceptions” to the policy because it is crucial that a buyer understand exactly what is covered and what is not covered by the title policy. Exceptions to a title policy’s coverage may include easements, leases, deed restrictions and covenants. Exceptions also include condominium and homeowner’s association master deeds, by-laws, and restrictions, which greatly impact what a property owner can and cannot do with the property. All restrictions should be carefully reviewed with an attorney.

Common title issues discovered in a title policy commitment can include liens and claims against the property for unpaid debts; unreleased mortgages; leases for mineral rights, and court judgments for unpaid debts and services. These issues “cloud” legal ownership of a property and must be resolved before the title can be conveyed to a buyer.

  • Review of Closing Documents. Real estate closings involve a variety of legal documents, from settlement statements and deeds to affidavits. A real estate attorney reviews everything prepared for the closing so that you know and understand what you will be signing. For example, an attorney will explain the property tax prorations, check the settlement statement with the debits and credits for the parties, draft or review the deed conveying the property, and review all other documents that are part of the closing package. It is important to remember that real estate agents and title companies play important roles in a real estate transaction, including the closing, however they cannot offer legal advice or represent your interests exclusively.

Talk With an Experienced Real Estate Attorney

In his law practice at Ager Law Office, Bill Ager assists clients with purchasing and selling real estate from start to finish, including reviewing the owner's title policy commitment and all the documents that impact a buyer’s ownership of property

To talk with Bill about his reasonable flat fees, call (734) 649-0784, send an email to bill@agerlawoffice.com or use the online contact form on his website.

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Categories: Real Estate