Under the Michigan Real Estate Transfer Tax Act (MCL 207.501–207.513), which of the following transfers is NOT exempt from Michigan's real estate transfer tax?
Correct Answer
D) A transfer of a commercial office building between two unrelated business entities in an arm's-length sale
An arm's-length sale of a commercial office building between two unrelated business entities is a standard taxable transfer under the Michigan Real Estate Transfer Tax Act. It does not fall within any of the exemptions listed in MCL 207.505. The seller owes both the state transfer tax ($7.50 per $1,000) and the county transfer tax ($1.10 per $1,000) on the sale price.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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