Under Michigan law, innocent misrepresentation is incompatible with the Seller’s Disclosure Act, with the exemption from liability afforded by MCL 565.955(1) with respect to a disclosure made on an SDS. Roberts v Saffell, 280 Mich App 397, 414; 760 NW2d 715 (2008), aff’d 483 Mich 1089; 766 NW2d 288 (2009).

The Seller Disclosure Act requires sellers of residential real estate to disclose certain known defects to potential buyers. The Act requires the seller to disclose defects in the property that are known to them. If a seller fails to make the required disclosures, a buyer has a right to terminate the contract.

In summary, while it is generally not possible to recover damages based on an innocent misrepresentation theory for statements made in a seller’s disclosure statement under the Seller Disclosure Act, there may be other theories of recovery available to buyers in certain circumstances. It is important to consult with an experienced attorney to determine the best course of action.