Complete walkthrough for Form L‑4260 (formerly 2766). Who signs, where to file, exemptions, and latest 2026 rules.
If you are transferring real estate in Michigan, the Michigan property transfer affidavit (Form L‑4260) is a mandatory filing with the county Register of Deeds. This document informs local assessors of ownership changes so property taxes can be accurately capped under Proposal A. In this guide, we cover everything: who signs, filing deadlines, exemptions, and 2026 updates to keep you compliant.
Transferee (buyer) – but often handled by closing agent.
Within 45 days of transfer.
County Register of Deeds (where property is located).
The Michigan property transfer affidavit (Form L‑4260) is required by MCL 211.27b. It collects information about the buyer, seller, property, and transfer type. The assessor uses it to determine if the property's taxable value should be uncapped (if not exempt) or remain capped under Proposal A. It's not a deed; it's an information return.
State law places the responsibility on the transferee (buyer). However, in practice, the closing agent, title company, or attorney often prepares and files it. Both grantor and grantee may sign, but the buyer's signature is essential. If multiple buyers, at least one must sign. The affidavit must be signed under oath before a notary.
Certain transfers are exempt from filing. Here are the most common exemptions under Michigan law:
| Exemption type | Description / statutory reference |
|---|---|
| Transfer to spouse (including divorce) | Incident to marriage, death, or divorce decree – no change in ownership for tax purposes. |
| Trusts where grantor is beneficiary | Revocable living trusts or certain irrevocable trusts where the transferor retains control. |
| Transfer between joint tenants | Adding or removing a joint tenant without consideration (e.g., survivorship only). |
| Government acquisitions | Federal, state, or local government purchases. |
| Cemetery lots or graves | Transfer of burial rights. |
| De minimis transfers | Correction deeds, quitclaim deeds to fix title, no actual change in possession. |
*Even if exempt, you may still need to file the affidavit to claim the exemption – always check with your county.
As of February 2026, the Michigan Department of Treasury has increased e-recording adoption. If you file electronically, keep the confirmation receipt. Also, double‑check the parcel number – mismatched numbers are the #1 reason for affidavit rejection. Always attach the preliminary property tax record if available.
File within 45 days of the transfer. Failure can result in a penalty of $5 per day up to $200. Worse, the property could lose its Proposal A taxable value cap, causing a significant tax increase. In 2026, no major legislative changes have been enacted, but the Treasury now sends courtesy reminders to non‑filers after 60 days.