Michigan Form 2766 Property Transfer Affidavit: Filing, Deadlines, and Penalties

Michigan Form 2766, the Property Transfer Affidavit, is the one-page document you file with your local city or township assessor after buying or otherwise acquiring real estate. You have 45 days from the transfer date to submit it, and late filing triggers daily penalties that scale with the type of property.¹ The form tells the assessor that ownership has changed so the property’s taxable value can be reset, which Michigan calls “uncapping.”²

When You Have to File

Form 2766 is required any time real estate changes hands, and for certain personal property transfers as well. That includes deeds, land contracts, transfers through trusts or wills, some long-term leases, and transfers of business interests tied to real property.¹ On the personal property side, the form only applies to buildings on leased land and leasehold improvements or estates as defined in MCL 211.8.

Watch the transfer date on a land contract. It’s the day the contract is signed, not the day it’s recorded and not the day you finish paying and get the deed.³ Buyers who assume the 45-day clock starts at closing often miss the deadline for exactly this reason.

Filing with the assessor is also independent of recording the deed with the register of deeds. The register separately notifies the assessor of recorded deeds, but that does not substitute for your affidavit.⁴

How to Fill Out Form 2766

Download the form from the Michigan Department of Treasury website or pick up a paper copy from your local assessor’s office.⁵ Keep your closing disclosure or settlement statement next to you while you work through it. The form has required items, optional items, an exemption section, and a certification block.

Required Fields (Items 1 Through 9)

Items 1 and 2: the property’s street address and county.
Item 3: the date of transfer. This is the date the deed was executed or the land contract was signed, and it starts your 45-day filing clock.
Item 4: whether the property sits in a city, township, or village, and the name of that jurisdiction.
Item 5: the purchase price, which the statute calls the “actual consideration for the transfer.”⁴
Item 6: the seller’s full legal name (person or entity).
Item 7: the Property Identification Number. The PIN runs 10 to 25 digits, usually with hyphens, and appears on the tax bill or assessment notice. If you don’t have one, attach the legal description instead.¹
Item 8: the buyer’s name and mailing address, which is where future tax bills and assessment notices will go.
Item 9: the buyer’s phone number.

Optional Fields (Items 10 Through 15)

Items 10 through 15 ask about the type of transfer (warranty deed, quit-claim, trust, and so on), whether a financial institution is involved, whether the parties are related, the down payment, the interest rate, and the amount financed. These are not required.¹ Filling them in anyway can head off follow-up questions, particularly if the purchase price looks unusual next to comparable sales nearby.

Exemption Section and Signature

Below the optional fields is a list of uncapping exemptions. If one applies to your transfer, check the matching box; the assessor may ask for documentation like proof of a family relationship.

At the bottom, print your name, sign, and date. If someone other than the new owner is signing, that person adds their title. Include a daytime phone number and email so the assessor can reach you if anything doesn’t line up.

Where to Submit and How to Prove You Filed

File the completed form with the assessor for the city or township where the property is located, not the county register of deeds. Deliver it in person and ask for a date-stamped copy, or send it by certified mail with return receipt so you have proof of timely filing. There is no state filing fee. Once the assessor processes it, the updated taxable value typically appears on the next year’s assessment notice.

Late-Filing Penalties

Penalties depend on how the property is classified:

Principal residence (non-commercial): $5 per day past the 45-day deadline, capped at $200.⁶
Other non-commercial property: $5 per day, capped at $4,000.⁶
Commercial or industrial property valued at $100 million or less: $20 per day, capped at $1,000.⁶
Commercial or industrial property valued over $100 million: a flat $20,000 after the 45 days elapse.⁶

The bigger risk is retroactive tax. If the assessor discovers an unreported transfer later, the Board of Review can adjust the taxable value for the current year and the three immediately preceding calendar years, meaning back taxes at the uncapped value for up to four years, plus interest.⁷

Exempt Transfers Still Require the Form

Some transfers do not uncap the taxable value, but you still have to file Form 2766 and check the exemption box. Common ones include:

Transfers between spouses, including from a deceased spouse to the surviving spouse.³
Transfers of residential property on or after December 31, 2014 to the transferor’s (or transferor’s spouse’s) mother, father, brother, sister, son, daughter, adopted child, grandson, or granddaughter, as long as the property stays residential and isn’t put to a commercial use.³
Transfers mandated by court order, such as a divorce judgment.

Checking the exemption box doesn’t guarantee acceptance; the assessor can follow up to verify.¹

Form 2766 Is Not the Principal Residence Exemption

If you’re moving into the home as your primary residence, Form 2766 does not sign you up for the Principal Residence Exemption. That’s a separate filing on Form 2368, submitted to the same assessor, which exempts your home from up to 18 mills of the local school operating tax. A valid PRE affidavit filed on or before June 1 applies to both that year’s summer and winter tax levies; filing after June 1 but on or before November 1 gets you the exemption for only the winter levy that year.⁸ If you’re the seller leaving a home where you had the PRE, file Form 2602 to rescind it once you no longer own or occupy the property, whichever comes first.⁹

1
Michigan Department of Treasury. Property Transfer Affidavit
2
City of Menominee. Uncapping Explained
3
Michigan Department of Treasury. Transfer of Ownership Guidelines
4
Michigan Legislature. MCL 211.27a
5
Michigan Department of Treasury. Property Transfer
6
Michigan Legislature. MCL 211.27b
7
East Grand Rapids, MI – Official Website. Property Transfer Affidavit
8
Michigan Department of Treasury. Principal Residence Exemption (PRE) Affidavit
9
White Lake Township. Property Transfer Affidavits and Principal Residence Exemptions/Request to Rescind