Savings for Some – Past Seller Clients Could Be Due A Transfer Tax Refund

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Past Seller Clients

We want to make you aware of the following possible money saving news.

Hot off the press from Liberty Title, Ann Arbor, MI.


In July the Supreme Court of Michigan issued an Opinion that made a State Transfer Tax refund possible for a large group of sellers who sold real property within the past 4 years. The refund has become possible because of a new interpretation of one of the Michigan State Transfer Tax Exemptions. Sellers may be eligible for a tax refund of $7.50/$1,000 of the sale price, e.g. $1,500 on a $200,000 sale!

The exemption can be claimed when the following requirements are met:

1) SEV in the year of sale was lower than the SEV in the year of seller’s purchase; and

2) The property qualified for a 100% Principal Residence Exemption at the time of sale.

Prior to July, the widely held interpretation was that to claim the exemption there was an additional requirement that the sales price could not exceed the “true cash value “ (SEV x 2) of the property. The Supreme Court of Michigan has done away with this requirement. Instead, the sales price simply had to be the result of arm’s length negotiations between the seller and purchaser. Sellers that would have qualified for this exemption may now retroactively claim the exemption by requesting a refund from the State of Michigan.

EXAMPLE: Fred and Norma Seller purchased their home in 2004. At the time of the purchase, the SEV of the home was $ 125,000. Fred and Norma sold the home in 2010 for $200,000. The home was their principal residence in 2010 and the SEV of the home was $ 95,000. Fred and Norma paid $1,720 of transfer tax, as under the old interpretation, they had sold home for more than “true cash value”-$95,000 x 2=$190,000.

Under the NEW INTERPRETATION because SEV at time of sale-$95,000-was lower than SEV at time of original purchase- $125,000- they are entitled to a refund of $1,500 of the transfer taxes they paid.


• Step 1. Contact your local assessor. Nearly all assessors are listed on the internet. Just “Google” the name of your City/Township and go to their website. Find out the property’s SEV in the year you purchased the home (“P”) and the SEV in the year you sold your home (“S”). Confirm that the home was 100% homestead in year of sale. If it was homesteaded, and S is lower than P, congratulations-you are eligible for a refund! (See worksheet below)

• Step 2. The refund application can found at the following link:

• Step 3. Complete the application and file it with the Michigan Department of the Treasury at:

Michigan Department of Treasury

Special Taxes Division

Miscellaneous Taxes and Fees/SRETT

P.O. Box 30781

Lansing, MI 48909-8281

Still have Questions?

Contact Liberty Title’s legal department and Ask for Pat, David or Terese

Phone: 855-343-8830


1. Is the property currently claimed as a Homestead: YES NO (Circle One)

If “Yes”, continue; if “No”, Stop; you cannot claim the exemption.

2. What is the SEV for 20____ (Current SEV) $___________________

3. What was the SEV on the date of purchase? $___________________

Is the answer to #2 less than or equal to the answer to #3? YES NO (Circle One)

If “Yes”, continue to #4; if “No”, Stop; you cannot claim the Exemption.

4. What is the purchase price? $___________________

5. Is the purchase price the product of arm’s length negotiation? YES NO (Circle One)





For your private tour and to view this house early, contact the Toth Team at 734.669.0337.  

Want more information on selling? Check out some of our other resources:

 For more tips on selling your Ann Arbor home, please visit our Seller Resources page.

Fairways at Stonebridge a Golfing Community in Ann Arbor MI, Pittsfield Twp; Ann Arbor Area Real Estate

Stonebridge Entrance SignFairways at Stonebridge, Located on Sawgrass Dr. E. in Pittsfield Township, Ann Arbor MI 48108.

There are 11 different neighborhoods at Stonebridge in Ann Arbor, Michigan.  Stonebridge is a beautifully designed community located on the south side of Ann Arbor in Pittsfield Township. The entire site at Stonebridge is a mix of Residential Single Family homes and Condominiums designed on 655 acres of land.

Fairways at Stonebridge is one of the 11 neighborhoods total at Stonebridge.  The Fairways consists of 20 homes backing to the 14th fairway on the Stonebridge Golf Course. The championship-style golf course was built first and then the homes were constructed offering plenty of great views and frontage.

Residents will enjoy living at the Fairways because you can be as involved and active as you want to be with activities and events going on year round.  Something for everyone.

Stonebridge Community Neighborhoods

Crooked Stick at Stonebridge  |  Doral Creek at Stonebridge  |  Estates at Stonebridge  |  Fairways at Stonebridge  |  Fairway Woods at Stonebridge  |  Heathers at Stonebridge  |  High Pointe at Stonebridge  |  Links at Stonebridge  |  Lone Oak at Stonebridge  |  Ponds at Stonebridge  |  Twin Islands at Stonebridge 

The residents of the Fairways at Stonebridge have active homeowner associations throughout the 11 different communities.  The Fairways property is also part of the Ann Arbor Schools and Saline School Districts.

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Ann Arbor is a great place to live, work and play. If you live here, or have lived here, we would like to know what you think of your neighborhood; your comments are welcome.

Ann Arbor offers fun and entertainment like  Zingerman’s Deli, in Kerrytown, and the Kerrytown Farmers Market. Purchase fresh produce at Plum Market. Shop the Mall just off State Street near I-94 at Briarwood. Purchase a unique gift or get year-round gardening tips at Downtown Home and Garden?  For other specialty items visit nearby Morgan and York and watch the video.  Visit the Cupcake Station and Grand Traverse Pie Company for delicious sweets.

Have a memorable day at a University of Michigan football game or Basketball game at Crysler Arena. Drive to Veteran’s Park for figure or hockey skating and outdoors for baseball, sledding, swimming. During July, visit the world famous Ann Arbor Arts Fairs.

For education or the arts check in at the Ann Arbor Hands On Museum for some great family fun! Tour the U of M campus, Medical Center. Take your picture and push the interactive art by artist  Tony Rosenthals “Endover” the Cube off State Street in the courtyard  north of the Michigan Union. Be sure to Visit Hill Auditorium! Take in a show at the beautiful Michigan Theatre  or Power Center on central campus in Ann Arbor.

Ann Arbor is a great place to live – convenient to Detroit Metro Airport, which is approximately a 30 minute drive from Ann Arbor. If you prefer a trip on the train use the Amtrak Station off Depot Street.

Find out more from the Ann Arbor Experts!  Search for homes in the Ann Arbor Area.

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