New Michigan Property Transfer Affidavit Rules

Essential Information for Homeowners and Realtors in 2025 Starting, Michigan will introduce significant changes to the filing requirements and penalties associated with Property Transfer Affidavits (PTAs).

These legal documents inform local assessors of new property ownership and must now be submitted within 45 days of closing. Failing to meet this deadline will result in daily fines that vary by property type, reflecting the state’s increased enforcement efforts. The updated penalty structure includes tiered fines: -

$5 per day for principal residences, with a cap of $200 -
$5 per day for non-homestead residential properties, but with a much higher cap of $4,000 -
$20 per day for commercial properties, with caps of either $1,000 or $20,000, depending on property value.

This differentiation highlights the importance of timely compliance for all stakeholders involved. It is crucial to understand the difference between homestead and non-homestead properties.

A homestead is a primary residence that benefits from specific tax exemptions, while non-homestead properties—such as rentals and second homes—are subject to higher tax rates. Properly filed PTAs ensure accurate property assessments and fair taxation.

For homeowners, submitting affidavits on time helps avoid unnecessary penalties and ensures accurate tax billing. Realtors® are vital in informing clients about these changes and incorporating PTA filing into their post-closing procedures. This can protect clients from unexpected fines and facilitate smoother ownership transitions.

In summary, the new Michigan PTA rules require vigilance and prompt action. Property buyers, investors, and real estate professionals should consult local assessor offices or the Michigan Department of Treasury for guidance. Staying informed and compliant will ensure property transfers are completed correctly in 2025 and beyond.