The Michigan Property Transfer Affidavit 2766 form is a mandatory document that must be filed whenever there is a change in property ownership within Michigan. This affidavit ensures that local municipal assessors are aware of any changes in ownership, which is crucial for the accurate assessment of property taxes. To streamline the process of transferring property ownership and remain compliant with Michigan state laws, begin by filling out the form by clicking the button below.
When property changes hands in Michigan, a critical document comes into play: the Michigan Property Transfer Affidavit 2766 form. This essential form serves to notify local assessing officers of a transfer of ownership, ensuring that property assessments and taxation accurately reflect current ownership information. It is a legal requirement for all property transfers, regardless of whether they are sales, inheritances, or even transfers of ownership without a sale. The affidavit needs to be filed within 45 days of the transfer to avoid penalties, making it a crucial step in the property transaction process. Beyond its role in updating ownership records, the form also plays a part in determining the taxable value of the property, which can impact property taxes going forward. Understanding the nuances of this form, including when and how to file it, can streamline the property transfer process and help new owners avoid unforeseen complications.
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L-4260
This form is issued under authority of P.A. 415 of 1994. Filing is mandatory.
This form must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed). The completed
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. The information on this form is NOT CONFIDENTIAL.
1.
Street Address of Property
2. County
3. Date of Transfer (or land contract signed)
4.
Location of Real Estate (Check appropriate field and enter name in the space
below.)
5.
Purchase Price of
Real Estate
City
Township
Village
6.
Seller’s (Transferor) Name
7.
Property Identification Number (PIN). If you don’t have a PIN, attach legal description.
8.
Buyer’s (Transferee) Name and Mailing Address
PIN. This number ranges from 10 to 25 digits. It usually includes hyphens and sometimes includes
letters. It is on the property tax bill and on the assessment notice.
9.
Buyer’s (Transferee) Telephone Number
Items 10 - 15 are optional. However, by completing them you may avoid further correspondence.
10.Type of Transfer. Transfers include, but are not limited to, deeds, land contracts, transfers involving trusts or wills, certain long-term leases and business interest. See page 2 for list.
Land Contract
Lease
Deed
Other (specify) _______________________
11. Was property purchased from a financial institution?
12. Is the transfer between related persons?
13. Amount of Down Payment
Yes
No
14. If you financed the purchase, did you pay market rate
of interest?
15. Amount Financed (Borrowed)
EXEMPTIONS
Certain types of transfers are exempt from uncapping. If you believe this transfer is exempt, indicate below the type of exemption you are claiming. If you claim an exemption, your assessor may request more information to support your claim.
Transfer from one spouse to the other spouse
Change in ownership solely to exclude or include a spouse
Transfer between certain family members *(see page 2)
Transfer of that portion of a property subject to a life lease or life estate (until the life lease or life estate expires)
Transfer between certain family members of that portion of a property after the expiration or termination of a life estate or life lease retained by transferor ** (see page 2)
Transfer to effect the foreclosure or forfeiture of real property
Transfer by redemption from a tax sale
Transfer into a trust where the settlor or the settlor’s spouse conveys property to the trust and is also the sole beneficiary of the trust Transfer resulting from a court order unless the order specifies a monetary payment
Transfer creating or ending a joint tenancy if at least one person is an original owner of the property (or his/her spouse)
Transfer to establish or release a security interest (collateral)
Transfer of real estate through normal public trading of stock
Transfer between entities under common control or among members of an affiliated group
Transfer resulting from transactions that qualify as a tax-free reorganization under Section 368 of the Internal Revenue Code. Transfer of qualified agricultural property when the property remains qualified agricultural property and affidavit has been filed. Transfer of qualified forest property when the property remains qualified forest property and affidavit has been filed.
Transfer of land with qualified conservation easement (land only - not improvements)
Other, specify: __________________________________________________________________________________________________
CErTIfICaTION
I certify that the information above is true and complete to the best of my knowledge.
Printed Name
Signature
Date
Name and title, if signer is other than the owner
Daytime Phone Number
E-mail Address
2766, Page 2
Instructions:
This form must be filed when there is a transfer of real property or one of the following types of personal property:
•Buildings on leased land.
•Leasehold improvements, as defined in MCL Section 211.8(h).
•Leasehold estates, as defined in MCL Section 211.8(i) and (j).
Transfer of ownership means the conveyance of title to or a present interest in property, including the beneficial use of the property. For complete descriptions of qualifying transfers, please refer to MCL Section 211.27a(6)(a-j).
Excerpts from Michigan Compiled Laws (MCL), Chapter 211
**Section 211.27a(7)(d): Beginning December 31, 2014, a transfer of that portion of residential real property that had been subject to a life estate or life lease retained by the transferor resulting from expiration or termination of that life estate or life lease, if the transferee is the transferor’s or transferor’s spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson, or granddaughter and the residential real property is not used for any commercial purpose following the transfer. Upon request by the department of treasury or the assessor, the transferee shall furnish proof within 30 days that the transferee meets the requirements of this subdivision. If a transferee fails to comply with a request by the department of treasury or assessor under this subdivision, that transferee is subject to a fine of $200.00.
*Section 211.27a(7)(u): Beginning December 31, 2014, a transfer of residential real property if the transferee is the transferor’s or the transferor’s spouse’s mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson, or granddaughter and the residential real property is not used for any commercial purpose following the conveyance. Upon request by the department of treasury or the assessor, the transferee shall furnish proof within 30 days that the transferee meets the requirements of this subparagraph. If a transferee fails to comply with a request by the department of treasury or assessor under this subparagraph, that transferee is subject to a fine of $200.00.
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.”
Section 211.27(5): “Except as otherwise provided in subsection (6), the purchase price paid in a transfer of property is not the presumptive true cash value of the property transferred. In determining the true cash value of transferred property, an assessing officer shall assess that property using the same valuation method used to value all other property of that same classification in the assessing jurisdiction.”
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.
After the hustle and excitement of purchasing or inheriting property, the Michigan Property Transfer Affidavit 2766 form might seem like just another piece of paperwork. However, completing this form accurately is crucial for ensuring your property taxes reflect the new ownership. This affidavit informs the local assessor’s office of a change in property ownership, which, in turn, can impact your property tax rate. To make this process as smooth as possible, follow these step-by-step instructions. Remember, it's all about dotting the I's and crossing the T's to keep everything in tip-top legal shape.
Filling out the Michigan Property Transfer Affidavit 2766 is a key step in ensuring that your property taxes are adjusted accordingly following a change in ownership. By following these steps carefully, you'll ensure the process is handled efficiently and accurately. Remember, it's always a good idea to keep a copy of the completed form for your records. Should questions arise about your property assessment or taxes, this document will be crucial in resolving any issues.
This form is a legal document required by the State of Michigan whenever ownership of real property or certain types of personal property changes. Its main purpose is to alert the local assessing officer of this change in ownership. This, in turn, allows the assessors to adjust the tax records accordingly, ensuring that property taxes are assessed and billed to the new owner.
The form must be filed within 45 days of the transfer of property. Filing beyond this period could result in penalties, including additional fees. It’s important to note that the “transfer of property” can mean not only the sale of the property but also transfers such as adding or removing someone’s name from the title, inheritances, or even transferring into a trust.
This form can be obtained from the local municipality’s assessor's office where the property is located. Many local government websites also offer downloadable versions of the form. Additionally, legal or real estate professionals can provide you with the form and assist with its completion and submission.
To properly complete the form, you'll need several pieces of information, including:
Yes, the buyer or the new owner of the property is responsible for completing and signing the form. If the property has been transferred to more than one person, all new owners must sign. This ensures that the record reflects all current owners correctly.
Failing to file the Michigan Property Transfer Affidavit 2766 form, or filing it after the 45-day period, can lead to penalties. These may include a monetary fine. More importantly, the failure to file can lead to incorrect property tax assessments. This oversight might cause complications in future transactions or adjustments to property records.
The ability to submit this form electronically depends on the specific municipality in which the property is located. Some municipalities may allow electronic submission through email or a web form, while others might require a physical copy to be mailed or delivered in person. It's best to contact the local assessor’s office to find out the accepted submission methods.
After filing the form, keep a copy of the completed affidavit for your records. Additionally, monitor communications from the local assessor’s office, as they may request additional information or provide updates on your property tax assessments. It’s also advisable to review the property tax bill you receive to ensure that all information has been updated and is accurate according to the recent property transfer.
When filling out the Michigan Property Transfer Affidavit 2766 form, it is crucial to avoid common mistakes to ensure the processing is smooth and efficient. Below are five frequent errors people make:
Not providing complete legal descriptions of the property. Every detail in the legal description helps in identifying the property accurately. Omitting parts of it can lead to complications in property transfer and legal disputes.
Failing to sign and date the form. The signature and date verify that the information provided is accurate and complete to the best of the filer’s knowledge. Unsigned or undated forms are considered invalid and will not be processed.
Inaccurate or incomplete reporting of the sales price. The sales price must reflect the total amount paid for the property, including any personal property included in the sale. Underreporting or omitting this information can lead to incorrect tax assessments.
Not checking the correct box for the type of transfer. The form requires the filer to indicate the nature of the property transfer. Selecting the wrong box can result in the wrong classification of the transfer, affecting tax implications.
Forgetting to include supporting documentation. Certain types of property transfers require additional documentation for verification purposes, such as deeds or land contracts. Failure to include these documents can delay the processing of the affidavit.
To avoid these mistakes, filers should take their time to review the form carefully, ensure all information is complete and accurate, and consult with a professional if there are any uncertainties. Properly filled forms help in the timely and correct processing of property transfers.
When transferring property in Michigan, the Property Transfer Affidavit Form 2766 is a crucial document. However, it's often just one piece of a larger puzzle. To ensure a smooth and legally compliant transfer, several other forms and documents usually accompany this affidavit. Here’s a closer look at five of these essential documents, which play varying roles in the property transaction process.
In the world of real estate, successfully transferring property ownership involves extensive documentation beyond the Property Transfer Affidavit Form 2766. Each document plays a pivotal role in verifying, protecting, and formalizing the process. Understanding and properly managing these documents can help both buyers and sellers avoid legal pitfalls and ensure a seamless transition of property ownership.
Homestead Exemption Application: This document is similar to the Michigan Property Transfer Affidavit 2766 form in that it is typically filed with the local assessor's office and may affect property tax assessments. The Homestead Exemption Application allows homeowners to claim a tax exemption for their primary residence, potentially lowering their tax liability. Like the Property Transfer Affidavit, this application affects property taxes and requires verification of ownership and occupancy.
Real Property Transfer Declaration: Similar to the Michigan Property Transfer Affidavit 2766 form, this document is used to report the transfer of ownership of real estate to the local government for tax assessment purposes. It helps in determining the value of the property for taxation. Both documents are essential for the accurate assessment of property taxes following a sale or transfer of property.
Quit Claim Deed: A quit claim deed is used to transfer ownership of property from one party to another without any warranty of clear title. It is similar to the Property Transfer Affidavit in that it is used in the process of transferring property rights but differs in its guarantee of the status of the property title. Both are critical documents in property transactions and have implications for the legal and tax status of the property.
Warranty Deed: This document also facilitates the transfer of property but includes guarantees from the seller to the buyer regarding the clear title and their right to sell the property. The similarity with the Michigan Property Transfer Affidavit 2766 form lies in its role in transferring ownership, although the Warranty Deed provides additional assurances about the property. Both documents are crucial for the conveyance and recording of property transactions.
Grant Deed: A grant deed transfers property ownership and guarantees that the property has not been sold to someone else. Like the Michigan Property Transfer Affidavit 2766 form, it is used in the process of changing ownership, but it provides certain assurances regarding the title, which the Property Transfer Affidavit does not. Both documents are important during property transactions for legal and tax considerations.
When completing the Michigan Property Transfer Affidavit Form 2766, it's important to adhere to specific guidelines to ensure the form is filled out correctly and efficiently. Following are eight do's and don'ts that can help guide you through this process.
Adhering to these guidelines will simplify the process of completing the Michigan Property Transfer Affidavit Form 2766 and help avoid common pitfalls. For further clarification or assistance, consider reaching out to a local title company or legal professional.
When dealing with the Michigan Property Transfer Affidavit (Form 2766), there are a few common misunderstandings that can complicate the process for property owners and buyers. Here are five misconceptions and the realities behind them:
Only the property seller needs to complete the form.
This is incorrect. While it's the seller's responsibility to ensure the form is completed, the buyer often plays a crucial role in providing accurate information about the sale. Collaboration between both parties is essential for accurately completing the form.
The form is only required for the sale of buildings.
This isn't the case. The Michigan Property Transfer Affidavit is required for the transfer of real property, which can include land, buildings, or a combination of both. The intent is to ensure that all property transfers are properly documented and assessed.
Filing the form is optional.
Actually, filing this form is mandatory. The State of Michigan requires it to be filed with the local assessor's office within 45 days of the transfer of property. Failure to do so can result in penalties, including fines.
There is no penalty for late filing.
Contrary to this belief, property owners can face penalties for not filing the form on time. The state imposes a fine of $5 per day for each day the form is late, up to $200. It's critical to file promptly to avoid these fines.
The information provided doesn't affect property taxes.
This is a misconception. The details filled out on the Michigan Property Transfer Affidavit directly impact the property's tax assessments. The selling price, for example, can influence the property's taxable value, potentially altering the amount of property taxes owed by the new owner.
Understanding the importance and requirements of the Michigan Property Transfer Affidavit 2766 form ensures that property transfers comply with state laws, helps in accurately assessing property taxes, and avoids unnecessary penalties.
Filing the Michigan Property Transfer Affidavit Form 2766 is an essential step in the process of transferring property ownership within the state. By understanding and adhering to the key aspects of this document, individuals can ensure a smoother transition. Below are eight vital takeaways to consider.
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