What Is the State Real Estate Transfer Tax Refund?

Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Call me at (616) 447-7025 for a FREE home buying or selling consultation Today, I’ll talk about the State Real Estate Transfer Tax Refund. If you haven’t heard about this new legislation, this information is invaluable to you. Last July, the Michigan Supreme Court passed a bill that affects anyone that has sold their home within the last four years. It provides Michigan homeowners the right to claim an exemption of $7.50 for every $1,000 in value that was sold.  You’re entitled to this benefit if you sold your home anytime after June 24th, 2011 with the SEV value lower in the year of sale than the year of purchase. For example, if you bought a home with an SEV value of $60,000, but sold it for an SVE value of $50,000, you’re qualified for this new refund to meet the difference. Additionally, the property must be claimed as the seller’s principal residence. With this refund, you’d qualify for funds previously collected by the title company at closing. It must be an arm's-length transaction, not a family member or a friend; it needs to be a typical, traditional transaction. Click here for a SRETT refund application form. There are only a few boxes to fill out, so it’s relatively painless paperwork. This is serious money that shouldn’t be ignored! If you have any questions about this refund, don’t hesitate to contact my office by phone or email. I’m happy to answer any questions you might have!