Michigan law defines a "transfer of ownership" as "the conveyance of title to or present interest in property, including the beneficial use of the property." Transfers of ownership include deeds, land contracts, distributions of estates, and a variety of other transactions.
Whenever a property transfer occurs, the new owner must file an affidavit with the local assessor within 45 days of the transfer. The assessor must adjust or "uncap" the property’s taxable value in the year immediately following.
Some transfers of ownership are exempt from uncapping:
- Transfers to a transferor's spouse, mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson or granddaughter, are exempt as long as the property is not used for a commercial purpose.
- See the Property Transfer Affidavit (form 2766) for additional exemptions.
You can find Property Transfer Affidavits at the Michigan Department of Treasury website.