A Michigan real estate agent is counseling a seller about the state and county transfer taxes due at closing. Which of the following statements about Michigan's real estate transfer tax is EXCEPT accurate?
Correct Answer
D) The buyer is legally required to pay both the state and county transfer taxes at closing under Michigan law
Option D is NOT accurate. Under Michigan law (MCL 207.502), the transfer tax obligation falls on the seller (grantor), not the buyer. The buyer has no legal obligation to pay either the state or county transfer tax. Stating that the buyer is legally required to pay both taxes is a direct misstatement of Michigan transfer tax law and is the inaccurate statement in this group.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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