Are you entitled to a State Real Estate Transfer Tax (SRETT) Refund? - UPDATED

With lower property values due to the housing crisis a few years back, many homeowners are able to take advantage of an exemption contained in the Michigan Transfer Tax Act.

Sellers who meet the following three (3) requirements are exempt from paying the state transfer tax and are entitled to a State Real Estate Transfer Tax (SRETT) Refund if they sold their property within the last 4 years.

Here are the requirements for SRETT Refund:

1. Seller occupied the property as a principle residence at the time the property was sold.
2. The property’s State Equalized Value (SEV) at the time the property was sold was equal to or lesser than the SEV on the date the property was purchased.
3. The sale price was the result of “arms length” negotiations (each party bargaining for their own self-interest) between the seller and buyer

If you meet these requirements, you can obtain a refund of the state transfer tax you paid when you sold your home and you can do it yourself!

Simply fill out the refund application at the following link:

http://www.michigan.gov/documents/2796f7_2601_7.pdf

and submit it to the Michigan Department of Treasury. Do not forget to include the required documentation.

Our Experienced Michigan Real Estate Attorney Can Help

If you need help with the application or required documentation, call or email me, and I will walk you through the process, free of charge. If you would like me to fill out and submit the form with the required documentation, I will do it for a reasonable flat fee. You can contact Bill Ager at bill@agerlawoffice.com or (734) 649-0784.