New Law takes effect December 31, 2013 & expanded for 2015
P.A. 497 of 2012 indicated that beginning December 31, 2013, a transfer of residential real property is not a transfer of ownership if the transferee is related to the transferor by blood or affinity to the first degree and has been expanded for 2015 to include adopted children, granparents and grandchildren, and the use of the property does not change following the transfer of ownership. See MCL 211.27a(7)(s). (1)
See also STC Bulletin 3 of 2013
The following information was taken from the Transfer of Ownership Guidelines (see link below) published by the State Tax Commission:
Is a transfer of property from a parent to a child a transfer of ownership?
Beginning with transfers occurring on and after December 31, 2014 only, no but only for property classified residential real and if the use of the real property does not change following the transfer of ownership.
Does this include relatives other than those related by blood?
Affinity to the first degree includes the following relationships: spouse, father or mother, father or mother of the spouse, son or daughter, including adopted children and son or daughter of the spouse.
When does this provision go into effect?
P.A. 497 of 2012 indicates that this provision is effective beginning December 31, 2013. Therefore, it is in effect only for transfers that occur on December 31, 2013 and after.