After you buy a house in Michigan, there is a lot that needs to be done. You need to set up utilities, figure out moving arrangements, childcare arrangements if you have kids, update your driver’s license, and so on. But there are two important forms which must be filed with the Tax Assessor’s Office that should not be forgotten. If these forms are not properly filed within 45 days, you become subject to fines. Further, your property may not technically be yours in the eyes of the municipality, meaning you could run into legal issues when you try to sell the house.

The first form is the crucial one, and that is the property transfer affidavit. This form actually transfers the property from the previous owner to you, in the eyes of the municipality. Your HUD-1 and closing documents would certainly hold water in a courtroom if needed, but filing this form would prevent a previous owner or anyone else from trying to make a claim against your property. Further, if you don’t file this form on time, the county will begin to assess you penalties and fees after 45 days, in the amount of $5 per day up to a total of $200. And I’ve never met someone who looked forward to paying unnecessary fees.

The second form is the Homestead Exemption. This form is far less mandatory from a compliance standpoint, but it is the form which allows you to claim a homestead exemption on the taxes for your primary residence. This form does not apply to investment or second home, as only your primary residence can be your homestead, but not filing can cost you thousands in increased, non-homestead, property taxes.

So after you buy your new home, please don’t forget to stop by the assessor’s office. These forms are really important and will cost you money if you don’t drop them off.

If you have any questions about what to do with these forms or about buying a house in general, please contact me. If you have anything to add about properly filing these forms, please leave a comment.