The Michigan Property Transfer Affidavit 2766 form is a crucial document required by the state whenever ownership of real property changes hands. This form ensures that the transfer is properly recorded and that necessary adjustments to the property's tax assessments are made in a timely fashion. For anyone involved in a property transfer in Michigan, understanding and accurately completing this affidavit is essential to a smooth transition. Click the button below to get started on filling out your form.
When a piece of property changes hands in Michigan, the transaction isn't just between the buyer and the seller. The state has a vested interest in keeping accurate records of such transfers, making the Michigan Property Transfer Affidavit 2766 form a crucial document in the process. This legal form, designed to be completed and submitted to the local assessor's office, ensures that property assessments reflect the current ownership and are adjusted accordingly for tax purposes. By accurately filling out and promptly submitting this form, new property owners can avoid unnecessary delays or complications with future tax assessments. The form itself covers a variety of information, including the parties involved in the transaction, the date of the transfer, the sale price, and detailed information about the property. Its completion is not only a legal requirement but also a step that protects the interests of both the state and the property owner, facilitating a smooth transition and ensuring the property tax system's accuracy and fairness.
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.
After acquiring a new property in Michigan, completing the Property Transfer Affidavit (Form 2766) is a crucial step. This document notifies the local assessor's office of a change in ownership, which, in turn, can affect the property's tax assessments. The process of filling out this form accurately is important for ensuring your property taxes are assessed appropriately based on the most current information.
Once the form is submitted, the local assessor's office will review the information and update the property's records accordingly. This could lead to adjustments in the property’s valuation and taxation. It's advisable to keep a copy of the submitted form for your records and to follow up with the assessor's office if you do not receive any confirmation of the form's acceptance within a reasonable timeframe.
The Michigan Property Transfer Affidavit 2766 form is a legal document that must be filed with the local municipality whenever there is a transfer of ownership of property in Michigan. This form serves to notify the local assessing officer of the change in ownership, and it's crucial for the accurate assessment of property taxes. It helps ensure that property tax assessments are up to date and reflect the correct owner's information.
Any individual or entity that acquires property in Michigan, whether through purchase, inheritance, or as a gift, is required to file the Michigan Property Transfer Affidavit 2766 form. This includes transfers of both residential and commercial properties. The responsibility to file this affidavit typically lies with the buyer or the new owner of the property.
The form must be filed within 45 days of the property transfer. Failure to submit the affidavit within this timeframe can result in penalties, including a potential fine. It's important to file this document promptly to avoid any unnecessary fees and to ensure the property's tax records are updated appropriately.
The completed form should be filed with the local assessor's office in the municipality where the property is located. Each municipality may have its own specific requirements for submission, such as whether the form can be filed electronically or must be submitted in person or by mail. It's advisable to contact the local assessor's office directly for detailed instructions on how to submit the form.
Filling out the form requires several pieces of information, including:
Yes, failing to file the form within the 45-day deadline can result in a fine. The specific amount of the penalty can vary, so it's important to adhere to the deadline to avoid these unnecessary costs. Furthermore, not filing the form can lead to issues with your property tax assessment, potentially affecting the amount of property taxes you owe.
Whether you can file the form online depends on the municipality where the property is located. Some municipalities in Michigan may offer an online submission option, while others may require in-person or mail submissions. It's best to check with your local assessor's office for their specific filing requirements and available options for submitting the form.
When filling out the Michigan Property Transfer Affidavit 2766 form, many folks run into common mistakes that can slow down the whole process. Understanding these pitfalls can help ensure the form is completed correctly and efficiently. Here's a look at some of the frequent missteps.
In addition to those mistakes, there are other pitfalls to avoid:
By steering clear of these mistakes, the process of completing the Michigan Property Transfer Affidavit 2766 form can be smoother and faster. It's all about taking the time to review each step, understanding the requirements, and double-checking the details. Doing so can significantly impact the success of your property transfer.
The Michigan Property Transfer Affidavit 2766 form is crucial in the documentation process for the transfer of property, serving as official notice to the local assessing office of the change in ownership. This form facilitates the correct assessment of property taxes to ensure the new owner is billed properly. In addition to this affidavit, there are several other documents and forms often used in conjunction to provide a comprehensive overview and ensure compliance with state laws and regulations. The following outlines some of these key documents.
Collectively, these documents, alongside the Michigan Property Transfer Affidavit 2766, create a document trail that ensures transparency, legality, and fairness throughout the property transfer process. Each document plays a specific role, from guaranteeing a clear title to disclosing potential property issues, all aimed at protecting the parties involved and complying with necessary legal standards.
The Michigan Property Transfer Affidavit 2766 form is similar to other documentation involved in the sale, purchase, or transfer of property. These documents ensure that the relevant local government entities are informed about changes in property ownership, which is critical for assessing and updating property tax records. Among these documents, a few stand out for their similarities in purpose and content.
The first document similar to the Michigan Property Transfer Affidavit 2766 form is the Uniform Residential Loan Application. Although primarily used for mortgage lending purposes, this form collects detailed information about the buyer and the property, similar to the transfer affidavit. Both documents require descriptors of the property, though the loan application also focuses on the financial capacity of the buyer. The key similarity lies in the necessity of detailed property descriptions to process a change involving real estate.
Another document that shares similarities is the Warranty Deed. This legal document serves as proof of a property's transfer from seller to buyer and guarantees that the seller holds the title to the property free and clear of liens. Like the Michigan Property Transfer Affidavit, the Warranty Deed is integral to the property transfer process, providing crucial information to local tax authorities to help ensure the correct party is billed for property taxes. Both documents are instrumental in the verification and recording of property ownership changes.
The Quit Claim Deed also resembles the Michigan Property Transfer Affidavit 2766 form in its function of documenting the transfer of interest in real property. Unlike a Warranty Deed, the Quit Claim Deed does not guarantee that the property title is clear of liens or other encumbrances. However, both the Quit Claim Deed and the Michigan Property Transfer Affidavit are needed to update public records, especially concerning the identity of the property's current rightful owner and the tax obligations associated with the property.
The Change of Ownership Statement, used in several jurisdictions to report changes in property ownership to the local tax assessor's office, mirrors the purpose of the Michigan Property Transfer Affidavit. Both documents play a critical role in ensuring property tax assessments are issued to the new owners in a timely manner. Information on the sale price, buyer, and seller details, similar to what's included in the Property Transfer Affidavit, is utilized to update tax records adequately.
When filling out the Michigan Property Transfer Affidavit 2766 form, it's crucial to approach the task with accuracy and attentiveness. This document is essential for recording the change in property ownership and ensuring the correct tax assessment. To guide you through this process, here are five dos and don'ts to consider:
By following these guidelines, you can ensure a smoother process in completing and submitting the Michigan Property Transfer Affidavit 2766 form. Careful attention to detail will help to avoid any unnecessary complications or delays in the transfer of property.
When dealing with the Michigan Property Transfer Affidavit (Form 2766), various misconceptions can cause confusion. It's essential to address and clarify these misunderstandings to ensure property transfers occur smoothly and in compliance with Michigan law.
Only the buyer needs to worry about it. In reality, both the seller and the buyer play crucial roles in completing and submitting the form. It's a shared responsibility to ensure all information is accurate and submitted on time.
It's optional. Many people mistakenly believe submitting Form 2766 is optional. However, it's a mandatory step in the property transfer process in Michigan. Failure to submit the form can lead to penalties and complications.
It must be filed only with the state. Actually, the affidavit needs to be filed with the local assessor's office of the municipality where the property is located, not directly with the state of Michigan.
There's plenty of time to file after the transfer. This is a common misconception. The law requires the form to be filed within 45 days of the property transfer. Delays can result in penalties.
It only applies to sales. Some think Form 2766 is necessary only when a property is sold. However, it's required for any transfer of ownership, including inheritances, gifts, or trusts.
Electronic filing is always an option. While electronic processes are becoming more common, not all municipalities accept electronic filing for Form 2766. Always verify with the local assessor's office.
All sections apply to every property transfer. The form is designed to cover a wide range of property transfers, so not all sections will apply to every transaction. It's important to carefully read and complete only the relevant sections.
It's the same as a deed. Some confuse this form with a property deed. While both are related to property transfers, Form 2726 is an affidavit related to the assessment of the property for tax purposes, not the legal document that transfers ownership.
Filing it updates the deed. Filing Form 2766 with the local assessor does not update the property deed. Deed changes must be filed separately with the county register of deeds to legally document the change in ownership.
Understanding the true requirements and procedures of the Michigan Property Transfer Affidavit (Form 2766) helps streamline the property transfer process, ensuring compliance and avoiding unnecessary delays or penalties.
Understanding the Michigan Property Transfer Affidavit 2766 form is crucial for anyone involved in the sale or transfer of property within the state. Here are four key takeaways to guide you through the process:
Completing the Michigan Property Transfer Affidavit 2766 correctly ensures a smoother transition of property ownership and compliance with state regulations. Always consult with local assessors or legal counsel if you have questions about your specific situation.
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