Ann Arbor MICHIGAN HOME SELLERS can Avoid STATE TRANSFER TAX?

Attorney General Mike Cox issued an opinion about the State Transfer Tax
Exemption that may help troubled home sellers in Michigan. The full act is
included at the very bottom of this blog. The point is that an exemption
from the requirement imposed by the State Real Estate Transfer Tax to pay
state real estate transfer taxes upon the transfer or sale of real property
may be claimed if, on the date a principal residence is transferred, its
state equalized value is less than or equal to its state equalized value on
the date the owner purchased or acquired the parcel and the property is sold
for not more than its true cash value at the time of sale.

Exemption “t”, as designated in the Michigan Transfer Tax Act, sets forth
that a seller may seek an exemption from paying the state transfer tax if
the following criteria are met:

1. The property must have been occupied as a principle residence,
classified as homestead property;
2. The property’s State Equalized Value for the calendar year in which
the transfer is made must be less than or equal to the property’s SEV for
the calendar year in which the transferor acquired the property; and
3. The property cannot be transferred for consideration exceeding its
true cash value for the year of the transfer.

Our Ann Arbor Real Estate market is hopefully nearing bottom and in an
effort to lessen the negative effects on Sellers, please get the word out
that there is some relief from the State (not the County) in this act.

Please take a minute to watch our Washtenaw County Treasurer, Catherine McClary
explain the effect in the YouTube video above.

We are helping our sellers interpret qualification by using this
Work Sheet supplied by Liberty Title Company included below. And we have helped several sellers avoid over paying.  Is your agent making sure to save you every penny?

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Opinion No. 7214 April 3, 2008 from Mike Cox

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