Why do you have to fill out seller's disclosures and lead based paint disclosure? It is Michigan State Law to fill out seller's disclosures and Federal Law requires you to fill out lead based paint disclosure. There are several exemptions from filling them out. Usually you will not see sellers disclosures filled out on bank foreclosures or when there is an estate.
Sellers selling a home that was built before 1978 has to have a lead based paint disclosure. Lead based paint was banned from use in 1978. This disclosure is a relatively easy one. Most sellers did not have knowledge of lead based paint or have any reports on the lead based paint in the house. So you check and initial the appropriate three boxes, sign, and you are done.
Michigan's sellers disclosure form is a little more detailed. It is two pages long. You need to fill this out completely and answer all questions honestly. Lying on the form can constitute fraud. So you do not want to get sued because you knew your basement leaked and you filled out NO water leaks in basement.
Answer honestly and truthfully. There is space to tell of repairs and when it was done. Give an explanation if necessary. I tell my clients to answer truthfully and to keep the answers short. Just enough to explain the situation without getting into major detail. The buyers will ask if they have questions about the disclosure.
You must fill it out completely. You cannot skip over answers you do not want to answer. Here is a copy of Michigan's seller disclosure page one.
It only takes about 5 minutes or less to fill out both disclosures. It's painless and it is the law that you have to fill them out. Buyers will not buy and close on a home until they have seen them. You could be open to a lawsuit later if you do not provide them to the buyer.
It is a customary part of the process. I hope this give you an understanding of what you have to fill out when you list your home.