Posted by Tom (MI) on September 18, 2003 at 10:17:27:
Transferring to a land trust is tax exempt in Michigan.
Tom
Transfer Tax - MICHIGAN - Sub To - Posted by Jon
Posted by Jon on September 18, 2003 at 09:51:46:
I’m getting calls still looking for my first deal. But is there a transfer tax in Michigan if i were to take the property Subject To and deed it into a land trust?
Some people say yes some say no, I know it has to be paid sometime but if it has to be paid when the house is bought i think that its pretty significant since i’ve heard it can run 2%? Which means it must be taken into consideration when i buy. Thankyou for any response
Re: Transfer Tax - MICHIGAN - Sub To - Posted by Blane (MI)
Posted by Blane (MI) on September 18, 2003 at 13:11:47:
I believe Tom is correct. The transfer tax is paid at the closing table when the property is actually sold. It’s not a set percent, but rather a total of $8.60 per $1,000 of sales price (broken out as 7.50 and 1.10 to the state or some other govt. entity, I forget what). So on a $100,000 sale price, the transfer tax is $860.
Make sure you do a net sheet showing ALL closing costs, so you don’t end up bringing more cash to closing or end up with less profit than anticipated. Also, closing costs are negotiable just like everything else. Hope this helps.
Blane