Maria is selling her home in Grand Rapids, Michigan for $320,000. At closing, who is responsible for paying the Michigan state and county real estate transfer taxes?
Correct Answer
D) The seller, because Michigan law places the transfer tax obligation on the transferor
Under MCL 207.502 and MCL 207.523, Michigan's real estate transfer tax — both the state portion ($7.50 per $1,000) and the county portion ($1.10 per $1,000) — is the legal obligation of the seller (transferor). The tax is typically paid at closing through the seller's proceeds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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- → The income approach to appraisal is most commonly used for which type of property?
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- → External obsolescence in Oklahoma:
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- → Three depreciation:
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