Legal Question in Real Estate Law in Michigan

Exemption from real estate transfer tax

What are the definitions of M.C.L.A. 207.505(a) and M.C.L.A 207.526(a)? I am trying to correct the chain of title for numerous units which are owned by the same builder, but have assumed new and other entity names. Any help that you may offer would be much appreciated. Thank you!

Asked on 12/31/04, 1:30 pm

1 Answer from Attorneys

Stephen Scapelliti Law Office of Stephen Scapelliti, P.C.
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Re: Exemption from real estate transfer tax

MCLA Section 207.505(a) provides:

"Exemptions.

Sec. 5.

The following instruments and transfers shall be exempt from this act:

(a) Instruments where the value of the consideration is less than $100.00."

MCLA Section 207.526 provides:

"Written instruments and transfers of property exempt from tax.

Sec. 6.

The following written instruments and transfers of property are exempt from the tax imposed by this act:

(a) A written instrument in which the value of the consideration for the property is less than $100.00."

There are many means for changing the chain of title going forward. Some examples are transferring title as a capital contribution, as a direct sale, as an exchange for other value, and similar transactions. Each of these has potential tax ramifications and liability ramifications. The ramifications depend upon a variety of facts which must be considered and examined. Those facts are not present in the question, and they must be considered by legal counsel with experience in liability and tax law.

This response is not intended as legal advice. Your rights and obligations will depend upon the particular facts and circumstances affecting this matter. You should consult an attorney in your area to discuss all of the relevant facts and circumstances. No attorney/client relationship is created as a result of this response. I may be contacted at 248.788.8225.

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12/31/04, 4:15 pm

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