How to Transfer Property Title in Michigan

Transferring a property title in Michigan is a legal process that involves preparing, executing, and recording a deed, resolving liens or encumbrances, and filing the required state affidavit. Whether you’re buying, gifting, inheriting, or selling real estate, following Michigan’s statutory requirements is essential to ensure a clean and valid ownership transfer.

1. Understand Key Concepts: Title, Deeds, Liens

Title represents legal ownership and outlines rights associated with the property. A clear title means no unresolved claims exist; a clouded title may have liens, unpaid taxes, boundary disputes, or other encumbrances that impair transferability Generis Online+1 Wikipedia.
A deed is the legal instrument that conveys title from one party (the grantor) to another (the grantee). Michigan recognizes various deed types:
- Warranty deed, which guarantees the grantor holds a clear and undefected title, with protections even before the grantor acquired the property Legal Beagle Wikipedia.
- Quitclaim deed, which transfers only whatever interest the grantor may have, without any warranties—commonly used between family members or trusted parties Legal Beagle Wikipedia.
- Covenant deed, providing a limited warranty (only covering actions taken during the grantor’s ownership) Legal Beagle.
- Specialized forms like life estate or Lady Bird deeds allow for delayed transfer or retention of use during life but automatic transfer upon death, avoiding probate Legal Beagle.

2. Conduct a Title Search & Resolve Liens

Before preparing a deed, it’s critical to research the title history. A title search reviews public records, uncovering any existing liens (like mortgage, tax, contractor liens), easements, or encumbrances that must be resolved for a clear title transfer Generis Online Wikipedia+1.
If liens are found, they must be cleared—through payment, payoff arrangements, or documented releases—to prevent delays or legal complications during the transfer Generis Online Prime Land Buyers LegalClarity.

3. Prepare the Right Deed

Choose the appropriate deed type for your situation: warranty deed for full assurances to the buyer; quitclaim for intra-family or trust transfers; covenant deed as an in-between option Legal Beagle mbelr.org Bowen Hoogstra.
Key deed requirements under Michigan law include:

Grantor signatures must be notarized; grantee signature not required.
Names must be legible and match the notarial acknowledgment.
Legal description of the property, consideration amount, and street address of grantee.
Formatting: black ink, ?10-point font, margins (?2.5″ top on first page; 0.5″ other margins), letter- or legal-size white paper of at least 20-lb weight.
Deed preparer’s name and business address, plus statutory transfer tax language or exemptions.
For unplatted land, a farm operation disclosure, as required by the Michigan Right to Farm Act, must be included with Legal Beagle Prime Land Buyers.

4. Signing and Notarization

The grantor must sign the deed in the presence of a notary public. The notary license information and signature must appear on the deed, with printed names beneath each signature, reflecting the same names entered on the notarial block Legal Beagle.

5. Record the Deed with the County Register of Deeds

After execution, the deed must be recorded in the county Register of Deeds office where the property is located. Recording puts the deed into the public record, giving constructive notice to third parties and protecting legal ownership under Michigan’s race/notice statute Legal Beagle Wikipedia.
Fees vary by county (for example, Wayne County charges around $15 plus additional for extra pages, Monroe County $30 flat) Legal Beagle. Prompt recording is vital to protect your interest.

6. File the Property Transfer Affidavit

Within 45 days of transferring the property, the new owner (grantee) must file the Michigan Form 2766, Property Transfer Affidavit, with the Department of Treasury. This helps determine transfer taxes and assessable value, and ensures compliance with state tax obligations Legal Beagle Prime Land Buyers.

7. Obtain Title Insurance (Optional but Recommended)

While not mandatory, securing title insurance protects buyers and lenders from hidden defects, liens, undisclosed claims, or legal challenges that may arise after the transaction. It ensures financial protection and legal remediation in the event of problems emerging later. LegalClarity Generis Online.

8. Optional: Engage a Real Estate Attorney or Title Company

Though not required, working with a licensed Michigan attorney or title company is often advisable—especially for probate transfers, complex parcel boundaries, disputes, or trust/estate conveyances. They can perform title searches, draft proper deed forms, and handle recording correctly noblepathlegal.com Investopedia.

9. Special Situations

Gifts or intra-family transfers: Quitclaim or life estate deeds are commonly used. Tax considerations apply depending on the value and relationship between parties.
Transfers after death: If property passes via will or through probate, affidavits or estate documents must be filed, and deeds prepared to convey title to heirs. Trust-based transfers may avoid probate altogether Dennis Buys Houses.
Trust transfers: Conveyance into or out of a trust after 1994 constitutes a transfer of ownership under Michigan law and must be recorded accordingly Michigan.gov.

Step-by-Step Recap

Order or conduct a title search to identify any liens, clouds, or encumbrances.
Choose the appropriate deed type (warranty, quitclaim, covenant, etc.).
Prepare the deed with legally compliant formatting, legal description, grantee info, consideration, disclaimers, and your notary block.
Sign and have the deed notarized in the presence of an official.
Record the deed at the local Register of Deeds—pay attention to county fees and formatting.
File Form 2766 Property Transfer Affidavit with the Michigan Department of Treasury within 45 days.
Consider title insurance to safeguard against future title defects.
If needed, engage an experienced Michigan real estate attorney to review or handle the entire process.
For transfers involving gifts, trusts, or inheritance, follow the appropriate legal and probate or trust procedures.

Why Getting It Right Matters

Legal certainty: Proper deed preparation and recording ensure clear ownership under Michigan law.
Avoid delays or disputes: Clearing liens and preparing correct documents prevents transaction hold-ups or post-closing claims.
Protect your investment: Title insurance and compliance help mitigate future risk and potential litigation.
Tax and valuation accuracy: The Affidavit ensures state and local property tax assessments reflect true ownership.

Conclusion

Transferring property title in Michigan is a structured process governed by state statutes and county rules. From conducting a title search and resolving liens to drafting and notarizing a conforming deed, recording it properly, and filing the property transfer affidavit, every step is essential. Choosing the right deed type—whether warranty, quitclaim, covenant, life estate, or trust deed—and optionally securing title insurance further protects your interests. While it’s possible to self-manage the process, consulting a real estate attorney or title professional is highly recommended for complex or high-value transactions.

Learn more about our comprehensive title insurance services here.

Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125

How to Transfer Property Title in Michigan

How to Transfer Property Title in Michigan

1. Understand Key Concepts: Title, Deeds, Liens