Michigan Property Transfer Affidavit (Form 2766): Filing and Exemptions

Michigan’s Property Transfer Affidavit, Form 2766, is a one-page form the new owner files with the local city or township assessor within 45 days of acquiring real estate.¹ The buyer files it, not the seller. Filing it lets the assessor “uncap” the property’s taxable value so it can reset to the current state equalized value rather than staying limited by Proposal A’s annual cap. Miss the 45-day deadline and the penalty starts at $5 per day up to $200. Skip the filing entirely and the assessor can reach back three years to collect the taxes you should have paid on the uncapped value.²

When You Have to File

Any transaction that shifts the beneficial use of real property counts as a “transfer of ownership” under Michigan law and requires Form 2766.³ A cash or mortgage sale is the obvious case. Quitclaim deeds, land contract executions, distributions from a decedent’s estate, and transfers into or out of most trusts all qualify too.⁴

Two triggers catch people off guard. Creating a life estate counts as a transfer of ownership even though the original owner usually stays in the home. And any lease longer than 35 years, counting renewal options, is treated the same as a sale for uncapping purposes.⁴

The requirement applies to residential, commercial, and agricultural property statewide. It applies even when the purchase price is zero, the transaction is between family members, or no deed is being recorded with the county Register of Deeds.¹

What to Have on Hand Before You Start

Most of what you need is on your closing paperwork, deed, or most recent property tax bill.

The Property Identification Number (PIN), a 10- to 25-digit number from the tax bill or assessment notice. It usually includes hyphens and sometimes letters. If you can’t find it, attach a legal description of the property instead.¹
The date of transfer, meaning the date the deed was signed or the land contract executed, not the recording date.
The actual purchase price. The statute requires reporting “the actual consideration for the transfer,” so use the real number.³
The seller’s full legal name and the buyer’s full legal name and mailing address as they appear on the deed.

Filling Out Form 2766 Line by Line

The form has required fields (lines 1 through 9), optional fields (lines 10 through 15), an exemptions section, and a certification block.

Required Fields

Lines 1 and 2 ask for the property’s street address and county. Line 3 is the date of transfer. Line 4 asks whether the property sits in a city, township, or village and the name of that jurisdiction. Line 5 is the purchase price. Line 6 is the seller’s name. Line 7 is the PIN, or the legal description if you don’t have a PIN. Line 8 is the buyer’s name and full mailing address. Line 9 is the buyer’s daytime telephone number.¹

The purchase price on Line 5 is worth a second look. Michigan law specifically says the purchase price is not the presumptive true cash value, so the assessor won’t automatically use this number as the property’s new value.¹ The assessor will still compare it against comparable sales, so understating it invites questions and possible penalties.

Optional Fields

Lines 10 through 15 cover the financing and nature of the transaction. Line 10 asks the type of transfer (land contract, warranty deed, quit claim deed, and so on). Line 11 asks whether the property was bought from a financial institution, which flags potential foreclosure sales. Line 12 asks whether buyer and seller are related. Lines 13 through 15 cover the down payment, whether a market interest rate was paid, and the amount financed. These lines are technically optional, but filling them in helps the assessor evaluate whether the sale was an arm’s-length transaction. Leaving them blank on a family sale or a below-market financing deal can prompt follow-up.

Exemptions Section and Certification

If the transfer qualifies for an exemption from uncapping, check the appropriate box in the exemptions section. The assessor may request supporting documents such as a trust agreement, marriage certificate, or divorce judgment.

In the certification block, print your name, sign, and date the form. If someone other than the new owner signs (an attorney, a corporate officer, a personal representative), that person also prints a name and title. Include a daytime phone number and email so the assessor can reach you rather than reject the form.

Exemptions That Keep Your Taxable Value Capped

Not every transfer resets the taxable value. Claiming a valid exemption on Form 2766 preserves the existing cap and can mean hundreds or thousands of dollars a year in avoided property taxes.

Transfers Between Spouses

A transfer from one spouse to another is exempt from uncapping. This covers transfers during a marriage and transfers that create or terminate a tenancy by the entireties.⁴ Transfers from a deceased owner to a surviving spouse are also exempt.³ Property transferred as part of a divorce settlement falls under the same exemption.

Transfers Between Close Family Members (Residential Only)

Since December 31, 2014, residential property transferred between close family members can avoid uncapping. This covers transfers by deed, through a trust, by will, or through intestate succession between a property owner (or their spouse) and their parents, children, adopted children, grandchildren, or siblings. The property cannot be used for any commercial purpose after the transfer.³ The assessor or the Department of Treasury can ask for proof the recipient qualifies, and failing to respond within 30 days triggers a $200 fine.

Revocable Trusts

Moving property into a revocable trust where the settlor or the settlor’s spouse is the sole beneficiary does not trigger uncapping.³ Distributing the property later out of that trust to a third party who isn’t a qualifying family member does trigger uncapping at that point.

Other Exemptions

Other categories qualify, including qualified agricultural property that continues to be used for farming, and certain transfers to or from limited liability companies, corporations, and partnerships where the underlying ownership doesn’t change. The full list appears in MCL 211.27a(7), and the Department of Treasury’s Transfer of Ownership Guidelines walk through each with examples.⁴ If you’re unsure whether your transaction qualifies, check those guidelines or call your local assessor before filing. It’s easier to claim the exemption upfront than to fight an uncapping later.

Where to Send the Form and by When

File the completed form with the assessor for the city or township where the property is located, not with the county Register of Deeds.¹ Recording your deed with the Register of Deeds does not satisfy this requirement. These are two separate filings with two separate offices, and the assessor filing is the one the penalties attach to.

You have 45 days from the date of transfer to get the form to the assessor. Most filers deliver it in person during business hours or mail it, and certified mail gives you proof of the date. Some municipalities accept online submissions (Ann Arbor, for example, allows electronic filing through its assessing department’s website), but that varies. Call your local assessor before assuming they accept electronic filings.

The form itself is a free PDF from the Michigan Department of Treasury’s website or a paper copy at any local assessor’s office.¹ Some title companies include a blank copy in the closing packet. They won’t file it for you.

What Happens If You File Late or Not at All

Miss the 45-day window and the penalty runs at $5 per day, capped at $200.² The fine is added to your property tax bill automatically once the assessor’s office processes the late filing.

The $200 is the small problem. If you never file, the assessor usually finds out anyway. Deed recordings, title insurance records, and real estate transfer tax filings all leave trails. Once the assessor discovers the unreported transfer, they can retroactively uncap the taxable value for the current year and the three immediately preceding calendar years.³ Corrected tax bills follow for each of those years at the higher value. On a property where the capped taxable value had drifted well below the state equalized value, the back taxes can easily run into thousands of dollars.

Appealing an Uncapping You Think Is Wrong

If the assessor uncapped your taxable value and you believe the transfer qualified for an exemption, your appeal route depends on how the uncapping arrived. For a standard uncapping that shows up on your regular assessment notice, challenge it before the March Board of Review, which meets annually in your city or township.

A delayed uncapping works differently. When the assessor discovers a past unreported transfer and uncaps retroactively, notice comes on Form 3214. That appeal goes directly to the Michigan Tax Tribunal within 35 days of the notification date. The local Board of Review has no authority over delayed uncappings.

Don’t Forget the Principal Residence Exemption

Filing Form 2766 does not preserve or transfer any Principal Residence Exemption (PRE) the previous owner had. The PRE, which exempts the property from the local school operating millage, belongs to the owner, not the property. When ownership changes, the new owner has to file a separate Principal Residence Exemption Affidavit (Form 2368) with the same local assessor.

Form 2368’s deadlines follow the tax levy cycle: file by June 1 for the summer tax bill, or by November 1 for the winter tax bill. If you buy a home in March and plan to live in it as your primary residence, filing Form 2368 alongside Form 2766 keeps you from missing the summer deadline. Skip this step and you’ll pay the full school operating millage until the exemption is granted, with no retroactive refund of the lost savings.

1
Michigan Department of Treasury. Property Transfer Affidavit
2
Michigan Legislature. Michigan Compiled Laws 211.27b – Failure to Notify Assessing Office; Adjustment
3
Michigan Legislature. Michigan Compiled Laws 211.27a
4
Michigan Department of Treasury. Transfer of Ownership Guidelines