If you are transferring real estate or certain types of personal property in the state of Michigan, you must file a Property Transfer Affidavit. The affidavit 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. If it is not filed, you can face harsh penalties.
Penalties
Section 211.27b(1): “If the buyer, grantee, or other transferee in the immediately preceding transfer of ownership of property does not notify the appropriate assessing office as required by section 27a(10), the property’s taxable value shall be adjusted under section 27a(3) and all of the following shall be levied:
(a) Any additional taxes that would have been levied if the transfer of ownership had been recorded as required under this act from the date of transfer.
(b) Interest and penalty from the date the tax would have been originally levied.
(c) For property classified under section 34c as either industrial real property or commercial real property, a penalty in the following amount:
(i) Except as otherwise provided in subparagraph (ii), if the sale price of the property transferred is $100,000,000.00 or less, $20.00 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum of $1,000.00.
(ii) If the sale price of the property transferred is more than $100,000,000.00, $20,000.00 after the 45 days have elapsed.
(d) For real property other than real property classified under section 34c as industrial real property or commercial real property, a penalty of $5.00 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum of $200.00.
If you or a loved one is having trouble filing this affidavit, please do not hesitate to reach out to us at 248-919-8383. Do not wait until your 45-day limit has passed.
