Just Closed Downriver? File the Property Transfer Affidavit

Who has to file the Property Transfer Affidavit, and when?

The law puts it on you, the buyer. Michigan law says the buyer, grantee or other transferee has to notify the assessing office in the city or township where the property is located within 45 days of the transfer of ownership. Treasury’s Form 2766, the Property Transfer Affidavit, says the same thing in plain words at the top: the new owner files it with the assessor for the city or township where the property is located, within 45 days of the transfer.

The form also says filing is mandatory, and it’s issued under Public Act 415 of 1994. Trenton’s assessing page cites the same act.

The 45 days run from the transfer. If you close on a Friday in Southgate or Taylor, day 45 lands about six weeks later, right when you’re busy with everything else a new house brings. That’s why I’d put it on the calendar the same day you sign.

A deed isn’t the only thing that counts. The form says it has to be filed whenever real estate is transferred, even if you are not recording a deed, and it lists land contracts among the transfer types. Michigan law also treats a conveyance by land contract as a transfer of ownership. So if you’re buying on a land contract in Lincoln Park or Wyandotte, the form and the law both cover your purchase.

Here’s a real Downriver example

Trenton spells out the split between the county and the city. The deed is recorded with the Wayne County Register of Deeds. The Property Transfer Affidavit goes to the City Assessor’s office, within 45 days. Michigan law has the same two pieces: the county register of deeds records the deed, and the buyer notifies the local assessing office. So in Trenton, recording the deed with the county and filing the affidavit with the city are two separate steps, and the second one is the buyer’s.

What goes on the form?

The law says the notice has to state four things: the parties to the transfer, the date of the transfer, the actual consideration, and the property’s parcel identification number or legal description. Form 2766 asks for those same four things. If you’re not sure where to find a number, ask your title company or the assessor’s office before you send it in.

The form and the law both list exemptions from uncapping, meaning transfers that don’t count as a transfer of ownership for this purpose. Each one has its own conditions. Here are some that appear in both places, stated with their conditions:

• a transfer from one spouse to the other,
• a redemption, by the person the taxes were assessed to, of property previously sold for delinquent taxes,
• a conveyance into a trust by the settlor or the settlor’s spouse, when the settlor or spouse is the sole present beneficiary,
• a transfer under a court order, unless the order specifies a monetary payment,
• a transfer of residential property to certain close family members, such as a parent, child, sibling or grandchild, if the property isn’t used for a commercial purpose afterward.

If you bought from an unrelated seller in a regular sale, read each box carefully before you decide one fits.

The form also says the assessor may ask for more information to support an exemption you claim. If you think yours qualifies, talk to the assessor before you file rather than guessing.

What happens if the 45 days pass?

Under Michigan law, if the buyer doesn’t notify the assessing office, the property’s taxable value is adjusted and the following are levied:

1. any additional taxes that would have been levied if the transfer had been recorded as required, from the date of transfer,
2. interest and penalty from the date the tax would have been levied, and
3. for a home or other non-commercial, non-industrial real property, a penalty of $5 per day for each day after the 45 days, up to $200 if you own and live in the home as your principal residence, or up to $4,000 for other property.

Treasury’s form quotes the same penalty language on its second page, and Trenton’s page gives the short version: $5 per day, up to $200, for residential property.

If you’re an investor, notice the second cap. The $4,000 maximum applies to real property that isn’t commercial or industrial and isn’t your principal residence, so a house you buy and don’t live in sits under the higher cap. Commercial and industrial property has its own schedule in both the law and the form: $20 per day after the 45 days, up to $1,000, when the sale price is $100 million or less.

Those three pieces can add up, and the $5 per day penalty is only one of them.

Why does the assessor want it?

Because a purchase changes how the home is taxed the next year. Michigan law says that after a transfer of ownership, the property’s taxable value for the year after the transfer is reset. Trenton’s assessing page describes the same thing and calls it uncapping: the taxable value the seller was paying on uncaps the year after you buy and becomes your new base.

So the seller’s last tax bill tells you what the seller paid, and your bill can look different the following year. For a closer look before you write an offer, read the guide to Trenton property taxes before you set your offer limit. For what that change could mean in dollars for a specific home, ask the assessor. When your first full-year bill shows up, compare it with what you planned for, and call the assessor’s office if something looks off.

The affidavit is your notice to the assessor that the property changed hands. The law and the form both treat it that way, and the penalties above are what the law adds when the notice isn’t given.

What should you do the week you close?

None of this takes long, but it’s easy to lose in the shuffle of moving trucks, utility transfers and new keys. Here’s the checklist I’d run:

• Ask who’s sending it. At the closing table, ask your title company whether they’re sending the Property Transfer Affidavit or whether it’s on you. The law and the form both name the buyer.
• Calendar day 45. Count from the transfer date and set a reminder a couple of weeks before it. If you’re buying more than one property this year, keep a short list with each closing date and its day-45 date side by side.
• Find the right assessor. The law and the form both point to the assessor for the city or township where the home sits. In Trenton, that’s the City Assessor’s office.
• Gather the four items. Have the parties, the transfer date, the price and the parcel number or legal description in front of you before you start.
• Keep a copy. Save a copy of what you filed and note the date you dropped it off or sent it.
• Ask about the principal residence exemption. That’s a separate affidavit under Michigan law, and Trenton lists it as its own form. If this is your home, ask the assessor about it while you’re there. The Downriver home buying guide walks through what that exemption does.

To see where this fits in the whole timeline, the step-by-step on what happens after your offer is accepted covers the stretch up to closing, and the guide to what a title company does in a Michigan home purchase covers who handles what at the table. For questions about your own tax bill or an exemption from uncapping, talk with your city or township assessor.

Frequently asked questions

Doesn't the title company file this for me?

The law puts the duty on the buyer, and Treasury's form says the new owner files it with the assessor. Ask your title company at closing whether they're sending it or whether it's on you, and keep a copy of what goes in.

Where do I file it in Trenton?

With the City Assessor's office. Trenton's assessing page says the affidavit is filed there within 45 days, while the deed itself is recorded with the Wayne County Register of Deeds.

Do I need it if I bought on a land contract?

Treasury's form lists land contracts among the transfers it covers and says it has to be filed even if you are not recording a deed, and Michigan law treats a land contract as a transfer of ownership. Ask the assessor if you're unsure how your contract is treated.

Is this the same as the principal residence exemption form?

No. The principal residence exemption is claimed on its own affidavit, and Trenton lists it as a separate form. If the home will be your principal residence, ask the assessor about both forms at the same time.

Sources

• Michigan Compiled Laws 211.27a, Property taxable value and transfer of ownership
• Michigan Compiled Laws 211.27b, Failure to notify assessing office
• Michigan Compiled Laws 211.7cc, Principal residence exemption
• Michigan Department of Treasury, Form 2766, Property Transfer Affidavit (Rev. 03-25)
• City of Trenton, Transfer a Property