Exepmtion "T" - How you may not have to pay the Transfer Tax when you sell your Home!

I read an article today in Michigan Realtor Magazine that explains Michigan's Exemption "T". To Summarize the exemption if you meet the following 3 criteria (most people selling their Home in todays market do) you are exempt from paying the transfer tax required to be paid by the seller. Here is the criteria:

  1. The property must have been occupied as a Principal Residence, classified as homestead property;
  2. The property's State Equalized Value ("SEV") for the calendar year in which the transfer is made must be less than the SEV for the calendar year in which the seller originally acquired the property; and
  3. The property cannot be transferred for consideration exceeding it's true cash value for the year transferred. (calculated by doubling the SEV for the year sold)

If you are selling your home be sure to check with your REALTOR to see if you qualify and it is reflected on your closing statement.

If you sold your home and have already paid this tax you can go to Michigan.gov and download the Application for State Real Estate Transfer Tax Refund form (Type SRETT in the search field) You have 4 years to claim a refund.

Rob Pope

Rob Pope

Newaygo Area Real Estate Advisor
Contact Me

Blog Archives