Property Transfer

A Property Transfer Affidavit must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed). It is used by the assessor to ensure the property is assessed properly and receives the correct taxable value. 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. If the Property Transfer Affidavit is not timely filed, a statutory penalty applies. 

See Excerpts below.

• Property Transfer Affidavit Form 2766 (L-4260)
• Transfer of Ownership Guidelines

Excerpts from Michigan Compiled Laws (MCL), Chapter 211

Section 211.27a(10):

“… the buyer, grantee, or other transferee of the property shall notify the appropriate assessing office in the local unit of government in which the property is located of the transfer of ownership of the property within 45 days of the transfer of ownership, on a form prescribed by the state tax commission that states the parties to the transfer, the date of the transfer, the actual consideration for the transfer, and the property’s parcel identification number or legal description.” 

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:

1. 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.
2. Interest and penalty from the date the tax would have been originally levied.
3. For property classified under section 34c as either industrial real property or commercial real property, a penalty in the following amount:
   1. 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.
   2. If the sale price of the property transferred is more than $100,000,000.00, $20,000.00 after the 45 days have elapsed.
4. 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.

For information regarding property transfers, please contact the Assessing Department or call (810) 632-7498.