Important Update for Michigan Homeowners and Realtors® in 2025
Starting in 2025, Michigan is rolling out stricter guidelines and penalties for filing Property Transfer Affidavits (PTAs). These documents notify local assessors of changes in property ownership and must be submitted within 45 days of closing.
Miss the deadline? Daily fines will apply, based on property type:
Principal Residence: $5 per day, up to $200
Non-Homestead Residential (e.g., rentals, second homes): $5 per day, up to $4,000
Commercial Properties: $20 per day
Cap of $1,000 for properties under $1 million
Cap of $20,000 for properties over $1 million
This new structure underscores the importance of meeting filing deadlines.
Understanding the difference between homestead and non-homestead properties is key. Homesteads are primary residences and receive certain tax exemptions. Non-homestead properties—like rentals and vacation homes—do not, and typically face higher tax rates.
Timely filing of PTAs helps:
✔️ Ensure accurate tax assessments
✔️ Prevent costly fines
✔️ Support a smooth ownership transfer
Homeowners should be aware of these new requirements, and Realtors® should include PTA filing as a key step in their post-closing checklist.
To stay compliant, consult your local assessor’s office or visit the Michigan Department of Treasury website for more details. With the right information and timely action, you can avoid penalties and keep property transfers hassle-free in 2025 and beyond.
