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The Michigan 2766 form, officially known as the Property Transfer Affidavit, is a crucial document for anyone involved in the transfer of real estate or certain types of personal property in Michigan. Required by law, this form must be filed by the new owner with the local assessor within 45 days of the property transfer, regardless of whether a deed is recorded. The information collected on this form is not confidential, and it includes essential details such as the property address, county, transfer date, purchase price, and the names and contact information of both the buyer and seller. Additionally, the form allows for the identification of the Property Identification Number (PIN), which is critical for tax purposes. While some sections are optional, completing them can help reduce follow-up inquiries from the assessor's office. The form also addresses various types of transfers, including those involving financial institutions, family members, and trusts, as well as exemptions that may apply. Understanding the requirements and implications of the Michigan 2766 form is essential for ensuring compliance and avoiding penalties related to property transfers.

Sample - Michigan 2766 Form

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

 

 

Yes

 

 

 

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14. If you inanced the purchase, did you pay market rate

of interest?

 

 

15. Amount Financed (Borrowed)

 

 

Yes

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

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Form Information

Fact Name Details
Form Title Michigan Department of Treasury L-4260 2766 (Rev. 01-15) Property Transfer Affidavit
Governing Law This form is issued under the authority of P.A. 415 of 1994.
Filing Requirement Filing is mandatory whenever real estate or certain personal property is transferred.
Filing Deadline The affidavit must be filed within 45 days of the property transfer.
Confidentiality The information provided on this form is not confidential.

Detailed Guide for Filling Out Michigan 2766

Completing the Michigan 2766 form is an important step in the property transfer process. Once filled out, the form needs to be submitted to the local assessor's office within 45 days of the property transfer. This ensures that all relevant information is recorded properly and in a timely manner.

  1. Begin by entering the Street Address of the Property in the designated field.
  2. Next, indicate the County where the property is located.
  3. Provide the Date of Transfer or the date when the land contract was signed.
  4. Identify the Location of Real Estate by checking the appropriate box and writing the name in the space provided.
  5. Fill in the Purchase Price of Real Estate.
  6. Enter the Seller’s (Transferor) Name.
  7. Input the Property Identification Number (PIN). If you do not have a PIN, attach a legal description of the property.
  8. Provide the Buyer’s (Transferee) Name and Mailing Address.
  9. Include the Buyer’s (Transferee) Telephone Number.
  10. For items 10-15, which are optional, consider completing them to avoid further correspondence:
    • Indicate the Type of Transfer (e.g., Land Contract, Lease, Deed, etc.).
    • Answer whether the property was purchased from a financial institution.
    • State if the transfer is between related persons.
    • Provide the Amount of Down Payment.
    • Specify if market rate interest was paid if the purchase was financed.
    • Indicate the Amount Financed (Borrowed).
  11. If applicable, indicate any Exemptions you believe apply to this transfer.
  12. Finally, complete the Certification section by signing and dating the form. Include your name and title if you are not the owner, along with your daytime phone number and email address.

Obtain Answers on Michigan 2766

  1. What is the purpose of the Michigan 2766 form?

    The Michigan 2766 form, also known as the Property Transfer Affidavit, is required whenever there is a transfer of real estate or certain types of personal property in Michigan. This form must be filed by the new owner with the local assessor within 45 days of the transfer. It ensures that the local government is informed about changes in property ownership, which can affect property taxes and assessments.

  2. Who is responsible for filing the Michigan 2766 form?

    The responsibility for filing the Michigan 2766 form lies with the new owner of the property, referred to as the transferee. It is crucial that the transferee submits this form to the assessor in the city or township where the property is located. Failure to file within the specified 45-day period may result in penalties and adjustments to the property’s taxable value.

  3. What information is required on the Michigan 2766 form?

    The form requires several key pieces of information, including:

    • The street address of the property.
    • The county where the property is located.
    • The date of the transfer.
    • The purchase price of the property.
    • The names and contact information of both the seller and the buyer.
    • The Property Identification Number (PIN) or legal description of the property.

    Additional optional information can also be provided to help reduce follow-up correspondence from the assessor.

  4. Are there any exemptions related to the Michigan 2766 form?

    Yes, certain transfers may be exempt from uncapping, meaning they may not trigger a reassessment of property taxes. Common exemptions include transfers between spouses, transfers between certain family members, and transfers resulting from court orders. If claiming an exemption, it is important to indicate this on the form, as the assessor may request additional information to support the claim.

Common mistakes

Many individuals encounter challenges when filling out the Michigan 2766 form. One common mistake is failing to provide the correct property identification number (PIN). This number is crucial for identifying the property and can range from 10 to 25 digits. If a person does not have the PIN, they must attach a legal description of the property. Omitting this information can lead to delays or complications in processing the form.

Another frequent error is neglecting to file the form within the required 45-day timeframe after the transfer. This deadline is mandatory, and missing it can result in penalties. It is essential for individuals to be aware of this requirement to avoid unnecessary fines and complications with property taxes.

Many people also overlook the section regarding optional information. While items 10 to 15 are not mandatory, completing them can help reduce further correspondence with the assessor. Providing details about the type of transfer, down payment, and financing can clarify the transaction and streamline the process.

Inaccuracies in the purchase price section are another common mistake. Individuals should ensure they report the correct amount paid for the property. This figure is significant for tax assessments and can affect future property tax calculations. Misreporting this value may lead to discrepancies and potential penalties.

Lastly, some individuals fail to sign and date the form. Certification of the information provided is essential, and without a signature, the form may be considered incomplete. This oversight can delay the processing of the property transfer and lead to complications down the line.

Documents used along the form

The Michigan 2766 form, also known as the Property Transfer Affidavit, is essential for documenting the transfer of real estate and certain personal properties in Michigan. When filing this form, several other documents may be required or beneficial for a complete and accurate transaction. Below is a list of these forms and documents, each serving a unique purpose in the property transfer process.

  • Deed: A legal document that officially transfers ownership of real estate from one party to another. It provides a detailed description of the property and must be recorded with the local government.
  • Land Contract: This agreement outlines the terms under which the buyer purchases property from the seller over time, often involving installment payments until the full purchase price is paid.
  • Title Insurance Policy: This document protects the buyer and lender from potential disputes over property ownership and ensures that the title is clear of any liens or claims.
  • Property Tax Bill: This bill provides information about the current tax assessment on the property, including the Property Identification Number (PIN), which is crucial for the 2766 form.
  • Legal Description of Property: A precise description of the property’s boundaries and location, often included in the deed, which is necessary if the PIN is not available.
  • Affidavit of Value: A document that provides an estimate of the property's value at the time of transfer, which may be required for tax assessment purposes.
  • Power of Attorney: If the buyer or seller cannot be present to sign documents, this legal document allows another person to act on their behalf during the transaction.
  • Disclosure Statements: These documents inform buyers about any known issues with the property, such as structural problems or environmental hazards, ensuring transparency in the sale.
  • Closing Statement: A summary of the financial transaction, including the final sale price, closing costs, and any adjustments made, which is typically reviewed and signed at closing.

Understanding these documents and their roles in the property transfer process can help ensure a smooth transaction. Properly preparing and filing the Michigan 2766 form along with the necessary accompanying documents is crucial for compliance and safeguarding the interests of all parties involved.

Similar forms

The Michigan 2766 form, known as the Property Transfer Affidavit, is similar to several other documents related to property transfer and ownership. Here are seven documents that share similarities with the Michigan 2766 form:

  • Property Transfer Declaration (Form L-4260): This form is used to declare the transfer of property ownership and requires similar information, including buyer and seller details, property description, and transfer date.
  • Quit Claim Deed: This legal document transfers interest in real estate from one party to another. It often accompanies the Michigan 2766 form to establish ownership transfer.
  • Warranty Deed: This document guarantees that the seller has clear title to the property and can legally transfer it. Like the Michigan 2766, it requires detailed information about the property and parties involved.
  • Real Estate Purchase Agreement: This contract outlines the terms of sale for real estate. It includes the purchase price and property details, similar to the information required on the Michigan 2766 form.
  • Affidavit of Title: This document affirms the seller's ownership and the absence of liens or claims against the property. It serves a similar purpose to the Michigan 2766 in confirming the legitimacy of the transfer.
  • Land Contract: This agreement allows the buyer to purchase property over time while the seller retains the title. The Michigan 2766 is often filed in conjunction with this type of transfer.
  • Transfer on Death Deed: This document allows property owners to transfer real estate upon their death without going through probate. It requires similar information as the Michigan 2766 for proper recording.

Dos and Don'ts

When filling out the Michigan 2766 form, it is important to adhere to specific guidelines to ensure accuracy and compliance. Below is a list of things to do and avoid during the process.

  • Do provide accurate information regarding the street address of the property.
  • Do include the county where the property is located.
  • Do specify the date of transfer clearly.
  • Do indicate the purchase price of the real estate.
  • Do ensure that the buyer's name and mailing address are complete.
  • Do file the form within 45 days of the transfer.
  • Do sign and date the form to certify that the information is true.
  • Don't leave any required fields blank; all necessary information must be filled out.
  • Don't forget to include the Property Identification Number (PIN) if applicable.
  • Don't provide false or misleading information, as this may lead to penalties.
  • Don't ignore optional sections; completing them may reduce future correspondence.
  • Don't submit the form late, as this may incur additional fees.
  • Don't overlook the need for additional documentation if claiming an exemption.
  • Don't forget to keep a copy of the completed form for your records.

Misconceptions

Understanding the Michigan 2766 form is crucial for anyone involved in real estate transactions in Michigan. However, several misconceptions can lead to confusion and potential issues. Here are six common misunderstandings:

  • Filing the form is optional. Many people believe that submitting the Michigan 2766 form is not necessary unless a deed is recorded. In reality, filing is mandatory for any transfer of real estate or certain personal property, regardless of whether a deed is recorded.
  • The form can be filed at any time. Some individuals think they can take their time with the filing process. However, the form must be submitted within 45 days of the property transfer. Delays can lead to penalties.
  • The information on the form is confidential. It is a common misconception that the details provided in the Michigan 2766 form are private. In fact, the information is not confidential and can be accessed by the public.
  • Only residential properties require the form. Some believe that the form is only necessary for residential real estate transactions. However, it applies to various types of properties, including commercial real estate and certain personal properties.
  • Only the buyer needs to complete the form. Many assume that only the new owner is responsible for filing. In truth, the buyer must file the affidavit, but both parties should be aware of the requirements to avoid complications.
  • Exemptions are automatic. There is a belief that certain transfers are automatically exempt from uncapping taxes. While some transfers may qualify for exemptions, it is essential to indicate the exemption type on the form. Assessors may require additional documentation to support the claim.

Being aware of these misconceptions can help ensure compliance and avoid potential penalties. Understanding the requirements of the Michigan 2766 form is an important step in any property transfer process.

Key takeaways

The Michigan 2766 form, also known as the Property Transfer Affidavit, is an essential document for anyone involved in a real estate transaction in Michigan. Here are some key takeaways regarding its completion and use:

  • Mandatory Filing: The form must be filed whenever real estate or certain personal property is transferred, regardless of whether a deed is recorded.
  • Deadline for Submission: New owners must submit the affidavit to the local assessor within 45 days of the transfer date.
  • Public Information: The information provided on the form is not confidential and may be accessed by the public.
  • Required Information: Key details such as the property address, county, date of transfer, purchase price, and names of the buyer and seller must be included.
  • Property Identification Number: If a PIN is not available, a legal description of the property should be attached to the form.
  • Optional Sections: Items 10 to 15 are optional but completing them can prevent further inquiries from the assessor.
  • Exemptions: Certain transfers may qualify for exemptions from uncapping property taxes. It's important to indicate any claimed exemptions on the form.
  • Certification Requirement: The signer must certify that the information is true and complete, which can be crucial in avoiding penalties.