Michigan Property Tax Assessments & the Property Transfer Affidavit

Alicia Schaub

The Property Transfer Affidavit must be filed whenever real estate is transferred (even if you are not recording a deed). It must be filed by the new owner with the assessor for the city or township where the property is located within 45 days of the transfer.

The form contains identifying information, such as seller’s name, buyer’s name and mailing address, street address of the property, parcel number, and the buyer’s telephone number.

It also contains a list of “Exemptions” in which certain types of transfers are exempt from uncapping.

Here are several common exemptions that could apply to your real estate transfer:

  1. The transfer of property if the transferee is the transferor’s or the transfer’s spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson, or granddaughter AND the use of the residential real property does not change following the property. (i.e. this means the real property remains classified as residential real property).
    1. For example, a transfer from a parent to a child would not cause uncapping and similarly, a transfer from a child to a parent.
  2. A change in ownership solely to exclude or include a spouse.
    1. Similarly, another exemption would be a transfer from one spouse to another spouse.
  3. Transfer of qualified agricultural property when the property remains qualified agricultural property and affidavit has been filed.
  4. Transfer creating or ending a joint tenancy if at least one person is an original owner of the property (or his/her spouse).
    1. For example, Jane Doe is the owner of real property and transfers title to Jane Doe and John Smith as joint tenants.
  5. The use of a Lady Bird Deed to transfer real property with the Grantor retaining an enhanced life estate.

With any exemption to uncapping, be prepared to provide proof to support your claim of the exemption should the assessor request.

You can fine a  fillable Property Transfer Affidavit at the link below: https://www.michigan.gov/documents/l4260f_2688_7.pdf

You may also look to MCL 211.27a for a comprehensive list of exemptions and information on what is and is not a transfer of property.

http://www.legislature.mi.gov/(S(whl0ldjlgc3voqtqlkhg1s3n))/mileg.aspx?page=getobject&objectname=mcl-211-27a

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