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Michigan · MCLMichigan real estate closing laws: a checklist for transaction coordinators

Michigan's rules for a home sale, in the order a transaction meets them: the seller of a one-to-four unit home delivers the seller disclosure statement before a binding purchase agreement is signed; if it comes later, the buyer may terminate by written notice within 72 hours after personal delivery or 120 hours after registered mail (MCL 565.954). At recording, the state real estate transfer tax is $3.75 per $500 of value, and the deed states the value or carries the Treasury affidavit (MCL 207.525). After closing, the cap on taxable value comes off for the year after the transfer, so the buyer's taxes can rise; the buyer files the Property Transfer Affidavit within 45 days – late filing costs $5 a day, up to $200 for a principal residence – and the principal residence exemption affidavit by June 1 or November 1 to keep school operating taxes lower (MCL 211.27a, 211.27b, 211.7cc).

From disclosure to after closing

  1. 1. Disclosure (MCL 565.954)

    Before a binding agreement; 72 or 120 hours to terminate if late.

  2. 2. Transfer tax (MCL 207.525)

    $3.75 per $500 of value.

  3. 3. Property Transfer Affidavit (MCL 211.27a)

    Within 45 days; $5 a day late.

  4. 4. Principal residence exemption (MCL 211.7cc)

    By June 1 or November 1.

Questions about Michigan closings

When must a Michigan seller deliver the disclosure statement?

Before signing a binding purchase agreement (MCL 565.954).

Why do property taxes jump after buying in Michigan?

The cap on taxable value comes off in the year after a transfer, so taxable value resets to state equalized value (MCL 211.27a(3)).

When is the Michigan Property Transfer Affidavit due?

Within 45 days of the transfer; late filing costs $5 a day, up to $200 for a principal residence (MCL 211.27b).

The Michigan guides

ClosingCode adds a post-closing step reminding the Michigan buyer about the principal residence exemption, linked to the uncapping guide.

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Sources: Michigan Compiled Laws 565.954, 207.525, 211.27a, 211.27b and 211.7cc (legislature.mi.gov, read for the linked guides).

General information, not legal advice. Each point links to the guide with the details. ClosingCode is software; it is not a law firm. This guide is not a substitute for the advice or services of an attorney.