The Michigan Property Transfer Affidavit 2766 form is a legal document used to report the transfer of property ownership in Michigan. This form plays a crucial role in ensuring that property taxes are accurately assessed and recorded following a change in ownership. Understanding its purpose and requirements is essential for both buyers and sellers in real estate transactions.
The Michigan Property Transfer Affidavit 2766 form plays a crucial role in real estate transactions within the state. This form is primarily used to report the transfer of property ownership to local tax assessors. When a property changes hands, the seller is required to complete this affidavit to ensure accurate assessment of property taxes. The form captures essential details such as the property’s address, the names of the buyer and seller, and the sale price. It also includes information regarding any exemptions or specific circumstances that may affect the property's assessed value. By submitting this affidavit, property owners help maintain transparency and accuracy in the local tax system. Failure to file this form can lead to complications, including potential penalties or inaccurate tax assessments. Understanding the importance of the Michigan Property Transfer Affidavit 2766 form is vital for anyone involved in buying or selling real estate in Michigan.
What is the Michigan Property Transfer Affidavit 2766 form?
The Michigan Property Transfer Affidavit 2766 form is a document used to report the transfer of real property in Michigan. It provides essential information about the property and the parties involved in the transfer. This form helps local assessors determine the property's value for tax purposes and ensures compliance with state regulations regarding property transfers.
Who needs to file the Property Transfer Affidavit?
Any individual or entity that transfers ownership of real property in Michigan is required to file the Property Transfer Affidavit 2766. This includes sellers, buyers, and other parties involved in the transaction. It is crucial to submit the form within 45 days of the transfer to avoid penalties.
Where can I obtain the Property Transfer Affidavit 2766 form?
The Property Transfer Affidavit 2766 form can be obtained from the Michigan Department of Treasury's website or local county assessor's office. Additionally, many real estate offices and legal professionals may provide copies of the form to assist clients in completing their property transfers.
What information is required on the form?
The form requires various pieces of information, including the names and addresses of the buyer and seller, a description of the property, and the sale price. Additionally, it may ask for details about the property's previous assessed value and any exemptions that may apply. Accurate and complete information is essential for the form to be processed correctly.
What happens if I do not file the Property Transfer Affidavit?
Failure to file the Property Transfer Affidavit within the required timeframe may result in penalties, including the potential for the property to be assessed at a higher value. Local assessors may also have difficulty determining the correct taxable value of the property, which could lead to issues with property taxes in the future.
Can I file the Property Transfer Affidavit electronically?
As of now, Michigan does not offer an option to file the Property Transfer Affidavit 2766 electronically. The form must be completed and submitted in paper format. However, it is advisable to check with local authorities for any updates regarding electronic filing options.
Is there a fee associated with filing the Property Transfer Affidavit?
There is no fee for filing the Property Transfer Affidavit 2766 itself. However, other fees may apply depending on the specific circumstances of the property transfer, such as recording fees at the county clerk's office. It is important to verify any additional costs associated with the property transfer process.
Filling out the Michigan Property Transfer Affidavit 2766 form is an important step in property transactions. Here are some key takeaways to consider:
The Michigan Property Transfer Affidavit 2766 form is often misunderstood. Here are some common misconceptions about this important document:
Understanding these misconceptions can help ensure that property transfers are handled correctly and efficiently in Michigan.
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.
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Incomplete Information: Failing to provide all required information can lead to delays. Each section of the form must be filled out completely.
Incorrect Property Description: Misidentifying the property can cause significant issues. Ensure that the property address and legal description match public records.
Not Signing the Affidavit: Omitting a signature invalidates the form. All parties involved in the transaction must sign the affidavit.
Incorrect Filing Fees: Submitting the wrong amount for filing fees can result in processing delays. Verify the current fee schedule before submission.
Missing Supporting Documents: Failing to attach required documentation can lead to rejection. Check the form instructions for any necessary attachments.
Not Notarizing the Document: Some situations require notarization. Confirm whether notarization is necessary for your specific case.
Ignoring Deadlines: Submitting the affidavit past the deadline can have consequences. Be aware of the timeline for filing after a property transfer.
Providing Inaccurate Tax Information: Incorrect tax identification numbers can lead to complications. Ensure that all tax information is accurate and up-to-date.
When filling out the Michigan Property Transfer Affidavit 2766 form, it's important to follow certain guidelines to ensure accuracy and compliance. Here are some key do's and don'ts:
The Michigan Property Transfer Affidavit (Form 2766) is similar to the IRS Form 1099-S, which is used to report the sale of real estate. Both documents are concerned with property transactions and require information about the transfer of ownership. The 1099-S form is specifically aimed at reporting proceeds from the sale, which may have tax implications for the seller. In contrast, the Michigan Property Transfer Affidavit focuses on the assessment of property for tax purposes and ensures that the local tax assessor has the necessary information about the property transfer.
Another document that shares similarities is the Quitclaim Deed. This legal instrument is used to transfer ownership of real estate from one party to another without any warranties. Like the Property Transfer Affidavit, a Quitclaim Deed is often used in property transactions and must be filed with the local government. Both documents facilitate the change of ownership and serve as a record of the transaction, although the Quitclaim Deed does not provide the same level of detail regarding property valuation.
In the realm of boat ownership, having a solid understanding of the relevant documentation is key. For those looking to transfer ownership, the Vessel Bill of Sale serves as an essential form that facilitates this process, ensuring that critical details such as the buyer and seller information, boat specifications, and sale price are clearly documented and legally binding. This form not only protects the interests of both parties involved but also plays a significant role in ensuring compliance with state regulations, similar to other important documents within property transactions.
The Warranty Deed is also comparable to the Michigan Property Transfer Affidavit. This document provides a guarantee from the seller to the buyer that the property title is clear of any encumbrances. While the Warranty Deed is focused on the legal assurance of ownership, the Property Transfer Affidavit collects information necessary for tax assessment purposes. Both documents are essential in the process of transferring property ownership and may be required during the closing of a real estate transaction.
The Affidavit of Title is another document that bears similarities to the Michigan Property Transfer Affidavit. This affidavit is a sworn statement confirming the ownership of a property and disclosing any liens or claims against it. While the Affidavit of Title serves to protect the buyer from potential title issues, the Property Transfer Affidavit provides essential information for local tax assessments. Both documents are important in the context of property transfers and help ensure transparency in the transaction process.
The Real Estate Transfer Tax Affidavit is also related to the Michigan Property Transfer Affidavit. This form is used to report the transfer of real estate and assess any applicable transfer taxes. Similar to the Property Transfer Affidavit, it requires details about the property and the parties involved in the transaction. Both documents are crucial for local government record-keeping and tax purposes, ensuring that the transfer of ownership is properly documented and taxed.
The Statement of Information is another document that shares characteristics with the Michigan Property Transfer Affidavit. This statement provides background information about the parties involved in a real estate transaction. While the Property Transfer Affidavit focuses on the property itself and its valuation, the Statement of Information helps to verify the identities of the parties and may be required by lenders or title companies during the closing process.
The Declaration of Value is similar in that it is used to report the value of a property during a transfer. This document is often required by local governments to assess property taxes accurately. Like the Michigan Property Transfer Affidavit, the Declaration of Value collects information about the property and the transaction. Both documents play a role in ensuring that property values are accurately reflected for taxation purposes.
Lastly, the Deed of Trust is relevant to the discussion as it is used in real estate transactions involving financing. This document secures a loan by placing a lien on the property. While the Deed of Trust primarily addresses the financial aspect of a property transfer, the Michigan Property Transfer Affidavit is concerned with the assessment of the property for tax purposes. Both documents are integral to real estate transactions, ensuring that ownership and financial obligations are clearly defined.