Michigan's Proposal A of 1994 significantly changed how property taxes are calculated. All of the following statements about Proposal A and Michigan's taxable value system are accurate EXCEPT:
Correct Answer
D) When a property is transferred, the new owner's taxable value is permanently frozen at the SEV at the time of purchase.
The statement that the new owner's taxable value is 'permanently frozen at the SEV at the time of purchase' is FALSE and therefore the correct answer to this EXCEPT question. While the taxable value does uncap and reset to the SEV at the time of transfer, it is NOT permanently frozen at that level. After the transfer, the Proposal A cap mechanism begins applying again for the new owner — meaning the taxable value can increase annually by up to the lesser of 5% or CPI in subsequent years. The value is only reset to SEV at the moment of transfer; future annual increases are then subject to the cap.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Ownership Question
Background Knowledge for Property Ownership
Real World Application in Property Ownership
Common Mistakes to Avoid on Property Ownership Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
More Property Ownership Questions
Which Hawaii rule controls when a condominium association budgets expenses and hires a managing agent?
Which Hawaii rule controls when a parcel is classified in the agricultural district?
In a Hawaii real estate transaction, a shoreline-adjacent property is inside the mapped special management area. What should the licensee remember?
A Hawaii licensee is reviewing state land use classification is tested. What is the best answer?
For the Hawaii salesperson state portion, a question compares condominiums, cooperatives, and planned communities. Which statement is correct?
- → For the Hawaii salesperson state portion, a condominium question distinguishes a unit from common elements. Which statement is correct?
- → A Hawaii broker asks a salesperson about a time share plan is offered to the public in Hawaii. Which answer follows Hawaii law?
- → A Hawaii broker asks a salesperson about development is proposed inside a special management area. Which answer follows Hawaii law?
- → In a Hawaii real estate transaction, a developer markets time share interests based on use nights. What should the licensee remember?
- → A Hawaii licensee is reviewing a buyer asks why a Hawaii condominium unit can be separately conveyed. What is the best answer?
- → Wisconsin adopted the Marital Property Act in 1986, creating a system similar to community property. Under this law, property acquired during marriage is generally considered:
- → Lead-based paint disclosure is particularly relevant in Wisconsin because:
- → An easement by prescription in Wisconsin requires continuous use for:
- → Wisconsin's agricultural use value assessment allows qualifying farmland to be:
- → Wisconsin property taxes are calculated using a:
People Also Study
Buyer Representation Agreement
8% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Financing
12% of exam
Related Articles
Property Flyer Generator — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Property Flyer Generator works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Real Estate Exam Property Ownership & Title (2026): Deeds, Liens, Encumbrances + Practice Questions
Understand deeds, liens, encumbrances, and ownership types with exam-style practice questions and traps.
Property Landing Page — 2026 U.S. Agent Guide: Setup, Use Cases & Pro Tips
Learn how Property Landing Page works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.