Legal Question in Real Estate Law in Michigan

You are entitled to reimbursement for 3 years where there is a mutual mistake of fact as to the nature of the taxable property, BUT you must file an appeal at the Board of Review and if they don't correct the mistake, then take your case to the Michigan Tax Tribunal. Be prepared for a long battle. If the amount of money is substantial, hire a property tax attorney, as the local taxing units do not give up tax money easily.

While this does not seem "fair" that you have been overcharged for 6-7 years, the state places some duty on the homeowner to check their assessments from time to time to make sure that the city hasn't made a mistake. The responsibility is shifted to the homeowner by limiting the amount of the refund to 3 years.

If your city assessments are paid in advance, and she is offering two years, and correcting your assessment for next year, then the result could be 3 years savings by the time you file your appeals. If so, take the deal.