The Michigan 2766 form, also known as the Property Transfer Affidavit, is a mandatory document required by the Michigan Department of Treasury. It must be filed whenever real estate or certain types of personal property are transferred, even if a deed is not recorded. New owners are required to submit this affidavit to the local assessor within 45 days of the property transfer.
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The Michigan 2766 form, also known as the Property Transfer Affidavit, plays a crucial role in the real estate transaction process within the state. Issued by the Michigan Department of Treasury, this form is mandatory and must be filed whenever there is a transfer of real estate or certain types of personal property. New owners are required to submit this affidavit to the local assessor within 45 days of the transfer, even if a deed is not being recorded. The form collects essential information, including the property’s street address, the date of transfer, and the names of both the seller and buyer. It also requests details regarding the purchase price and the property identification number, which can be found on tax bills and assessment notices. While some sections are optional, providing additional information may help streamline the process and reduce further correspondence. Exemptions are available for specific transfers, such as those between family members or related parties. It is important to note that the information submitted is not confidential, and accurate completion of the form is essential to avoid penalties. Understanding the requirements and implications of the Michigan 2766 form is vital for anyone involved in property transactions in Michigan.
Michigan Department of Treasury
L-4260
2766 (Rev. 01-15)
Property Transfer Afidavit
This form is issued under authority of P.A. 415 of 1994. Filing is mandatory.
This form must be iled whenever real estate or some types of personal property are transferred (even if you are not recording a deed). The Afidavit must be iled 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 ield and enter name in the space
below.)
5.
Purchase Price of Real Estate
City
Township
Village
6.
Seller’s (Transferor) Name
7.
Property Identiication 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 deeds, land contracts, transfers involving trusts or wills, certain long-term leases and interest in a business. See page 2 for list.
Land Contract
Lease
Deed
Other (specify) _______________________
11. Was property purchased from a inancial institution?
12. Is the transfer between related persons?
13. Amount of Down Payment
Yes
No
14. If you inanced 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 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 beneiciary of the trust Transfer resulting from a court order unless the order speciies 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 stocks
Transfer between entities under common control or among members of an afiliated group Transfer resulting from transactions that qualify as a tax-free reorganization
Transfer of qualiied agricultural property when the property remains qualiied agricultural property and afidavit has been iled. Transfer of qualiied forest property when the property remains qualiied forest property and afidavit has been iled.
Transfer of land with qualiied 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.
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 iled when there is a transfer of real property or one of the following types of personal property:
•Buildings on leased land.
•Leasehold improvements, as deined in MCL Section 211.8(h).
•Leasehold estates, as deined 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 beneicial 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)(t): 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 ine of $200.00.
Section 211.27a(10): “... the buyer, grantee, or other transferee of the property shall notify the appropriate assessing ofice 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 identiication 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 oficer shall assess that property using the same valuation method used to value all other property of that same classiication 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 ofice 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 classiied 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 classiied 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 2766 form is an essential step when transferring real estate or certain types of personal property. After completing this form, it must be submitted to the assessor of the city or township where the property is located within 45 days of the transfer. This ensures compliance with state regulations and helps avoid potential penalties.
The Michigan 2766 form, also known as the Property Transfer Affidavit, is a document that must be filed whenever there is a transfer of real estate or certain types of personal property in Michigan. This form is required by law and must be submitted to the local assessor within 45 days of the transfer, even if no deed is being recorded.
The new owner, referred to as the transferee, is responsible for filing the Michigan 2766 form. This must be done with the assessor for the city or township where the property is located. Timely submission is crucial to avoid penalties.
The form requires several key pieces of information, including:
Additional optional information may help avoid further correspondence with the assessor.
If the form is not filed within the required 45 days, there can be significant penalties. The property’s taxable value may be adjusted, and the owner could face additional taxes, interest, and penalties. These can accumulate quickly, leading to financial strain.
Yes, some transfers are exempt from uncapping property taxes. Examples include transfers between spouses, certain family members, or transfers resulting from court orders. If you believe your transfer qualifies for an exemption, you must indicate this on the form, and be prepared to provide additional documentation if requested.
If you do not have the Property Identification Number (PIN), you can attach a legal description of the property to the form. The PIN is typically found on the property tax bill or assessment notice, and it usually consists of 10 to 25 digits.
While the Michigan Department of Treasury may provide online resources, the form itself must be printed, completed, and submitted to the local assessor’s office. Always check the official website for the most current procedures.
If you need help completing the Michigan 2766 form, consider reaching out to the local assessor’s office. They can provide guidance on filling out the form correctly. Additionally, consulting with a real estate attorney or a professional familiar with property transactions can be beneficial.
No, the information provided on the Michigan 2766 form is not confidential. It is a public record, which means that it can be accessed by others. Ensure that you provide accurate information, as it will be used for property tax assessments.
Incomplete Information: Many individuals fail to fill out all required fields on the form, such as the property address or the buyer's name. Omitting essential information can delay processing.
Incorrect Property Identification Number (PIN): Providing an incorrect PIN can lead to complications. It is crucial to double-check this number, as it is vital for identifying the property.
Missing Signature: Some people forget to sign the affidavit. A missing signature invalidates the form, requiring resubmission.
Failure to Meet Deadline: The form must be submitted within 45 days of the transfer. Missing this deadline can result in penalties.
Incorrect Purchase Price: Listing an inaccurate purchase price can lead to issues with property assessments. Ensure the amount reflects the actual transaction.
Not Specifying the Type of Transfer: Many individuals neglect to indicate the type of transfer, such as whether it is a deed or land contract. This information is necessary for proper classification.
Ignoring Optional Items: While items 10-15 are optional, completing them can prevent further correspondence with the assessor's office. Many people skip these fields, missing an opportunity for clarity.
Inaccurate Exemption Claims: Claiming an exemption without proper justification or documentation can lead to complications. If claiming an exemption, be prepared to provide additional information if requested.
The Michigan 2766 form, or Property Transfer Affidavit, is essential for reporting the transfer of real estate and certain personal property in Michigan. When completing this form, several other documents may also be necessary to ensure compliance with state regulations. Below is a list of commonly used forms and documents that accompany the Michigan 2766 form.
Completing the Michigan 2766 form along with the necessary supporting documents is crucial to ensure a smooth property transfer process. Timely filing can help avoid penalties and complications in property ownership. Always consult with a professional if you have questions about the requirements or need assistance with the process.
The Michigan Property Transfer Affidavit (Form 2766) is similar to the IRS Form 709, which is used for reporting gifts. Both forms require detailed information about the parties involved and the nature of the transaction. Just as the 2766 form must be filed within a certain timeframe following a property transfer, the IRS Form 709 has specific deadlines for reporting gifts made during the tax year. Both forms serve to document the transfer of ownership, ensuring that relevant authorities are informed for tax assessment purposes.
Another similar document is the Quit Claim Deed. This legal instrument is used to transfer an interest in real property without guaranteeing that the title is clear. Like the Michigan 2766 form, a Quit Claim Deed must be filed with the appropriate local government office to ensure the transfer is officially recognized. Both documents require the names of the parties involved and a description of the property, thereby creating a public record of the transaction.
The Warranty Deed is also comparable to the Michigan 2766 form. A Warranty Deed provides a guarantee that the grantor holds clear title to the property and has the right to sell it. Similar to the 2766, this document must be recorded with the local government. Both forms aim to protect the interests of the parties involved in the transfer, ensuring that the new owner has legal rights to the property.
The Affidavit of Identity is another related document. This affidavit is often used to confirm the identity of the parties in a property transaction. While the Michigan 2766 form focuses on the details of the property transfer itself, the Affidavit of Identity serves to validate the individuals involved. Both documents contribute to the integrity of the property transfer process by providing necessary information to local authorities.
The Real Estate Transfer Tax Form is similar in that it is required when real estate is sold or transferred. This form, like the Michigan 2766, must be filed with the local tax authority and includes details about the transaction. Both documents are essential for tax assessment and ensure that the appropriate taxes are collected based on the transfer of ownership.
The Declaration of Value is another document that aligns with the Michigan 2766 form. This declaration is often filed alongside a deed to provide information about the sale price and other relevant details. Both forms aim to inform local authorities about the specifics of the property transfer, ensuring accurate assessment for tax purposes.
The Title Insurance Policy also shares similarities with the Michigan 2766 form. While the 2766 is concerned with the transfer of ownership, a Title Insurance Policy protects the buyer against potential issues related to the title. Both documents play a crucial role in real estate transactions, ensuring that the new owner is aware of their rights and any potential liabilities.
The Bill of Sale is akin to the Michigan 2766 form in that it documents the transfer of ownership for personal property. While the 2766 is specific to real estate, the Bill of Sale serves a similar purpose for personal items. Both documents require details about the parties involved and the item being transferred, thus creating a record of the transaction.
Finally, the Deed of Trust is comparable to the Michigan 2766 form in that it involves the transfer of property interests. A Deed of Trust is used in real estate transactions to secure a loan, while the 2766 form documents the transfer of property ownership. Both forms require detailed information about the parties and the property, ensuring that all relevant details are recorded for future reference.
When filling out the Michigan 2766 form, attention to detail is crucial. This form is a Property Transfer Affidavit, and it must be completed accurately to ensure compliance with state regulations. Here are seven essential do's and don'ts to keep in mind:
By following these guidelines, you can help ensure that your filing is smooth and compliant with Michigan's property transfer regulations.
Understanding the Michigan 2766 form can be challenging due to common misconceptions. Here are seven myths and the truths behind them:
Being aware of these misconceptions can help ensure compliance with Michigan's property transfer regulations.
Here are some key takeaways about filling out and using the Michigan 2766 form: