Michigan general warranty deed

What a general warranty deed does in Michigan

A general warranty deed transfers ownership and adds the full set of title covenants: the grantor promises they own the property, have the right to sell it, that it is free of undisclosed encumbrances, and that they will defend the title against any claim, including claims that arose long before they owned it. It is the standard instrument for an arm's-length sale between private parties.

The Michigan law behind this deed

Start with MCL § 565.151 if you want to read the statute's own language. The table below lists the main statutes behind the rules on this page.

When Michigan homeowners use a general warranty deed

• Sell a property directly to a buyer without an agent
• Transfer a property where the buyer expects full title protection
• Satisfy a purchase contract that calls for a warranty deed
• Convey property where a title company requires warranty covenants

What Michigan requires on the deed

These are the execution and formatting rules registers of deeds enforce. Getting any of them wrong is the usual reason a deed comes back in the mail.

How to complete and record it in Michigan

1. 1Find your current deedYou need the legal description from it, word for word. If you can't find your copy, the Register of Deeds can provide one, usually for a few dollars.
2. 2Identify everyone by full legal nameNames must match the current deed and government ID exactly, middle names included. A mismatch creates a gap in the chain of title that shows up years later at closing.
3. 3Complete the deedDeedly builds it with the wording, notary certificate, and 2.5-inch first-page margin used for Michigan deeds.
4. 4Sign in front of a notaryBring photo ID. Wait to sign until you are in front of the notary: you have to appear before the notary anyway, and signing there leaves no question about who signed.
5. 5Record it with the Register of DeedsFile in the county where the property is located and pay the recording fee. Many offices in this state also accept e-recording, but usually only from approved submitters such as title companies. Keep the stamped receipt. It fixes your priority date.
6. 6Update insurance and tax recordsA change of ownership can affect your homeowner's policy, your homestead or senior exemption, and in some states the assessed value. Do this within a few weeks.

What it costs in Michigan

Michigan charges a real estate transfer tax of State $3.75 per $500 ($7.50 per $1,000), plus county $0.55 per $500.

Exemptions that commonly apply to a transfer like this: consideration under $100, including a gift (county 207.505(a), state 207.526(a)), A deed from one or both spouses that creates or ends a tenancy by the entirety (county 207.505(i), state 207.526(i)), A conveyance to the grantor's child, stepchild, adopted child or grandchild, which is exempt from the state tax only (state 207.526(j), (k)), so the county tax still applies if money changes hands, A deed creating a joint tenancy where at least one of the joint tenants already owns the property (county 207.505(o), state 207.526(r)), and A corrective deed confirming title already vested in the grantee (county 207.505(l), state 207.526(n)). You have to claim the exemption. The recorder won't apply it for you.

Where to record it in Michigan

Michigan deeds are recorded with the Register of Deeds in the county where the property sits, not where you live. There are 83 counties in Michigan.

Many Michigan recording offices accept e-recording through vendors such as Simplifile, CSC, or ePN. E-recording is generally open only to approved submitters such as title companies, attorneys, and lenders, so if you prepared the deed yourself, plan to record in person or by mail. Some offices accept filings from the public through those vendors; your county's website will say.

Recording offices we cover in Michigan: Wayne, Oakland, Macomb, Kent, Genesee, Washtenaw, Ottawa, Ingham, Kalamazoo, Livingston. See all Michigan recording offices.

What a general warranty deed does NOT do

Being honest about the limits is more useful than a sales pitch. Every one of these catches somebody out.

• The covenants only bind the grantor personally. If they have no assets, a covenant claim may be worth little.
• It does not replace title insurance or a title search. It gives you a claim after the fact, not clean title today.
• It does not avoid probate and cannot be revoked once delivered and recorded.
• Signing one when you don't actually know the property's history exposes you to real liability. Where that is a concern, a special warranty deed is the safer instrument.

Quirks of Michigan law that catch people out

• Michigan eliminated the old two-witness requirement in 2002. A notary alone is sufficient today. Forms floating around online still show witness lines; they are outdated.
• Sign in black or dark blue ink. Michigan registers of deeds cannot accept a signature in any other color (MCL 565.201(1)(a)).
• A warranty or covenant deed must carry the county treasurer's certificate that property taxes for the last 5 years are paid, or the Register of Deeds will not record it (MCL 211.135). Quitclaim deeds and other deeds without warranty covenants are exempt.
• Within 45 days, the new owner must file a Property Transfer Affidavit (Form 2766, L-4260) with the city or township assessor, not the Register of Deeds. The transfer itself uncaps the taxable value unless MCL 211.27a(6) or (7) excludes it. If you don't file within 45 days, the assessor adjusts the value retroactively and bills the back taxes with interest, plus $5 a day (up to $200 for a principal residence, and up to $4,000 for other property that is not commercial or industrial) (MCL 211.27b).
• Michigan is one of the five lady bird deed states, and lady bird deeds are used here routinely for probate avoidance.
• A conveyance to a married couple creates a tenancy by the entirety automatically, which carries strong creditor protection.
• Michigan does not recognize transfer-on-death deeds. The lady bird deed fills that role.

How to hold title in Michigan

When two or more people take title in Michigan and the deed says nothing more, the law presumes a tenancy in common, which means no automatic survivorship. If you want the survivor to take the whole property, the words have to be on the deed. Forms of co-ownership available in Michigan: tenancy by the entirety (married couples only), joint tenancy with right of survivorship, and tenancy in common.