The Michigan Property Transfer Affidavit 2766 form is a legal document required to be submitted by the seller or transferor of real estate in Michigan, detailing the sale or transfer of property within the state. It serves to inform local taxing authorities of the change in ownership, ensuring the accurate assessment of property taxes. For those involved in property transactions in Michigan, completing this form accurately is a critical step in the transfer process.
To efficiently handle your property transfer needs, ensure you fill out the Michigan Property Transfer Affidavit 2766 form correctly by clicking the button below.
When a piece of property changes hands in Michigan, it's not just the keys that get handed over. There's also a crucial piece of paperwork known as the Michigan Property Transfer Affidavit 2766 form. This form plays a significant role in the process, ensuring that the local tax assessor's office is informed about the transfer of ownership. It's a mandatory step for the new owner to fill out and submit this form within 45 days of the transfer to avoid penalties. The information provided on this affidavit includes details about the seller and buyer, the property's sale price, and the date of transfer. Beyond its administrative function, the form has a direct impact on property taxes, as it helps set the new taxable value of the property based on the sale. It's a straightforward document, but its completion is essential for both legal compliance and the financial implications it carries for the new owner.
Reset Form
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.
Filling out the Michigan Property Transfer Affidavit 2766 form is a necessary step in the process of transferring property ownership within the state of Michigan. This document ensures that the local assessor is informed of the change in ownership, which is crucial for property tax assessment purposes. The following instructions are designed to help one complete the form accurately and efficiently. Remember, it's important to have all the relevant details about the property and the transaction at hand before you start.
After the form has been submitted, the local assessor will review the information and adjust the property's records and tax assessments accordingly. It's important to ensure that the form is filled out correctly and completely to avoid any delays in the processing. Keep a copy of the submitted form for your records. Should you require any assistance while completing the form, don't hesitate to reach out to the local assessor's office for guidance.
What is the Michigan Property Transfer Affidavit 2766 form?
The Michigan Property Transfer Affidavit 2766 is a document required by the state whenever a real estate property changes hands, regardless of whether it's sold, inherited, or gifted. This form notifies the local assessor's office of the change in ownership, allowing them to adjust the property’s assessed value and ensure accurate property tax calculations. Completing and submitting this form is a critical step in the property transfer process, as it impacts local tax records and assessments.
When should the Michigan Property Transfer Affidavit 2766 form be filed?
This form must be filed with the local assessor's office in the jurisdiction where the property is located within 45 days of the property transfer. Failing to file within this timeframe can result in penalties, including fines. It's important for new property owners to prioritize this filing to ensure compliance with Michigan tax laws.
Who is responsible for filing the Michigan Property Transfer Affidavit 2766 form?
Typically, the responsibility falls on the new property owner to complete and file the Michigan Property Transfer Affidavit 2766 form. Although in some cases, professionals involved in the transaction, such as real estate agents or attorneys, may assist with or handle the filing as part of their services, it ultimately is the owner's responsibility to ensure that the form is filed correctly and on time.
What information is needed to complete the form?
Completing the form requires detailed information about the property transfer, including the date of transfer, the parties involved (both the grantor and grantee), and the property's legal description. Additionally, it asks for the sale price, terms of the sale, and the property's use (e.g., residential, commercial). Gathering all relevant documents related to the property sale or transfer before starting the form can help streamline the process.
What happens after the form is filed?
Once the Michigan Property Transfer Affidavit 2766 form is received by the assessor's office, they will review the information provided and use it to update the property's tax records. This may include adjusting the property's assessed value to reflect its current market value, which can change the amount of property tax owed. In some cases, the office may request additional information or documentation to verify the details of the transfer.
Can the form be filed electronically?
Whether the Michigan Property Transfer Affidavit 2766 form can be filed electronically depends on the local assessor’s office. Some jurisdictions may allow for online submission, while others may require the form to be filed in person or via mail. It's advisable to check with the specific office where the property is located to understand their filing requirements and options.
When transferring property in Michigan, the completion of the Property Transfer Affidavit, Form 2766, is a crucial step. This legal document is necessary for the proper recording of a property's change of ownership and helps ensure the correct assessment of property taxes. Unfortunately, individuals often make mistakes during this process, which can lead to delays, penalties, or inaccuracies in tax assessments. Here are four common errors:
One of the most frequent mistakes made is not submitting the Property Transfer Affidavit within 45 days of the property's transfer. This delay can result in a penalty of $5 per day, up to $200. Timeframes are crucial in the legal domain, especially with property transactions, and adhering to them can save a lot of trouble and extra expense.
Failing to provide all the required information or leaving sections blank is another common error. The form requires details like the property's identification number, the type of transfer, and the sale price, among others. Incomplete forms can lead to processing delays or the need for resubmission, complicating what should be a straightforward process.
Submitting the affidavit with incorrect information can significantly affect the outcome of the property transfer. Mistakes in property identification numbers, personal details of the buyer or seller, or inaccuracies in the sale price can lead to incorrect tax assessments. Ensuring the accuracy of every detail on the form is paramount.
Overlooking the need to attach necessary supporting documents is another error property owners might make. Depending on the nature of the property transfer, additional documents such as deed copies, trust documents, or death certificates may be required. These documents substantiate the claims made in the affidavit, ensuring the process's legality and correctness.
Avoiding these mistakes can streamline the property transfer process, ensuring compliance with Michigan law and accurate property tax assessments. It's always beneficial to review the completed form carefully, ensuring it meets all legal requirements and is accompanied by the correct documentation. For those unfamiliar with the process, considering professional guidance from a real estate lawyer or a tax advisor can be invaluable.
When dealing with property transfers in Michigan, the Property Transfer Affidavit Form 2766 is crucial. However, this form is often just one part of a larger packet of necessary documents. Each document serves a specific purpose in the process, ensuring that all legal and regulatory requirements are met. Here is a list of other important forms and documents typically used alongside the Michigan Property Transfer Affidavit 2766 form.
Together, these documents facilitate a smooth property transfer process, ensuring legal compliance and protecting all parties involved. While the Property Transfer Affidavit Form 2766 is a key element, understanding the role and requirement of each associated document can provide peace of mind during what can be a complex process.
Real Property Transfer Declaration (Form PTAX-203, Illinois): This document is similar to the Michigan Property Transfer Affidavit in its fundamental function, as it is also used to report the transfer of real estate property to local government authorities. Like its Michigan counterpart, the PTAX-203 form helps in calculating the property tax and ensures the tax assessors have the current value of the property being transferred.
Change in Ownership Statement (California): This document, required by the California Board of Equalization, serves a similar purpose by notifying county assessors of a change in property ownership. It is akin to the Michigan form in that it is necessary for the proper assessment of real estate for taxation purposes, ensuring that all information is up-to-date following a transfer.
General Warranty Deed: The General Warranty Deed is a document that guarantees clear title to the property being transferred, free from liens or other encumbrances. It is similar to the Michigan Property Transfer Affidavit in that it is a critical document in the property transfer process, significantly affecting the legal and tax status of a property.
Quit Claim Deed: This document is used to transfer any interest in real property the grantor might have without any guarantee regarding the title. It is similar to the Michigan Property Transfer Affidavit in that it is part of the property transaction process, although it serves a different function. While the Quit Claim Deed changes the ownership, the affidavit ensures the local assessing authorities are informed of the transfer for taxation purposes.
Affidavit of Title: This legal document is provided by the seller of a property to explicitly state the status of potential legal issues involving the property, including liens, disputes, or encumbrances. It is similar to the Michigan Property Transfer Affidavit in that both documents deal with the legal aspects of property transfer, although the Affidavit of Title is more concerned with clarifying the seller's right to sell the property.
Filling out the Michigan Property Transfer Affidavit (Form 2766) is an important step in the property transfer process, ensuring the proper calculation of property taxes. This document must be completed with accuracy and diligence. Here are nine essential dos and don'ts designed to guide you through the process smoothly:
By following these guidelines, you can ensure a smooth and efficient process in completing and filing the Michigan Property Transfer Affidavit (Form 2766). Remember, this form plays a critical role in updating the property's tax records, and careful attention to detail is crucial for all parties involved.
Many people face confusion when dealing with the Michigan Property Transfer Affidavit Form 2766. It's essential to understand what it is and what it entails to navigate property transactions in Michigan accurately. Below are eight common misconceptions about this form.
Only for Residential Properties: A common misunderstanding is that Form 2766 is solely for the transfer of residential properties. However, it applies to all types of real property transactions, including commercial, industrial, and vacant land.
No Deadline for Submission: Another misconception is that there's no specific timeline for submitting this affidavit. In reality, it must be filed with the local assessor’s office within 45 days of the property transfer. Failing to do so can result in penalties.
Irrelevant for Gifted Properties: Some believe that if a property is gifted and not sold, this form is not necessary. This is incorrect. Any transfer of property ownership, including gifts, requires the completion and submission of Form 2766.
For Buyer's Completion Only: It's often thought that only the buyer needs to complete this form. While it's true that the buyer usually fills it out, the seller also has a role in providing accurate information for the affidavit.
Doesn't Affect Taxes: Many assume that Form 2766 has no impact on property taxes. This form is crucial for the assessor’s calculation of taxable value, which directly influences property taxes. Therefore, accurate and timely filing is crucial.
The Same as a Deed: People often confuse Form 2766 with a deed. The deed is a legal document that shows who owns the property, while Form 2766 is an affidavit concerning the transfer of the property for tax assessment purposes.
No Need for Legal Advice: A prevalent misconception is that completing and submitting Form 2766 is straightforward and doesn't require professional advice. Given its implications on property taxes and ownership, consulting with a legal expert or tax advisor is advisable.
One Time Submission: Finally, it's mistakenly believed that once Form 2766 is filed, it never needs to be revisited. If there are any future changes in the property usage or ownership, a new affidavit might be required to update the local authorities accordingly.
Understanding these misconceptions and the actual requirements of the Michigan Property Transfer Affidavit Form 2766 can help property buyers, sellers, and owners navigate the transfer process more smoothly and avoid any unnecessary complications.
Understanding the Michigan Property Transfer Affidavit (Form 2766) is crucial for any party involved in a property transaction within the state. This document is not only a statutory requirement but also plays a significant role in the proper recording and assessment of property transfers. The following key takeaways outline the essential aspects of completing and using this form effectively:
Being mindful of these key takeaways can streamline the property transfer process, ensuring compliance with Michigan state laws, and facilitating a smooth transition of property ownership.
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