Jennifer sold her home in Lansing, Michigan and moved into a rental apartment. She forgot to file the PRE rescission form with the local assessor. Her former home was purchased by Robert, who plans to use it as his primary residence. Which of the following best describes the consequences of Jennifer's failure to file the rescission?
Correct Answer
A) Jennifer may face a penalty assessment for the years the PRE was improperly claimed after she vacated
Under MCL 211.7cc(4), when a homeowner moves out of or sells their primary residence, they are required to file a PRE rescission (Form 2602) with the local assessor. Failure to do so may result in the prior owner being subject to a penalty assessment for the period during which the PRE was improperly claimed on a property that was no longer their primary residence. The Department of Treasury may assess back taxes plus interest and penalties.
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