Any real estate experts in the house? (1 Viewer)

[playin4beer]

Michigan

After living in our house for almost 30 years, we recently (November) had the opportunity to buy my parents house, on a lake. One of the big benefits (or so we thought) of buying my parents house was that the taxes wouldn't get uncapped. They've been in their house for almost 20 years and our taxes were pretty close to the same. Fast forward to this week and our tax assessment comes in and our taxable value went thru the roof. I called on it and because me AND my wife are on the deed, they can uncap 50%. They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us". Anybody have any insight on this?? Is it possible to have a "corrected deed" done in just my name? or has that ship sailed?

 

[STEADYMOBBIN 22]

 

[Long Ball Larry]

Not an expert, but hard for me to see how you could go back on the deed. Maybe you could find something in the agreement that could be grounds for voiding the sale.

I do find it a strange law that a spouse would negate the rights of transfer in this situation. I would consult an attorney. Depending on who you talked to in the assessment office, they may not know all the facts.

 

[Mrs. Rannous]

This one is very state specific. My MIL wanted to put Mr R on her house deed. A big no. We would only get a homestead exemption on our house, so we'd have to pay the full rate on "his" half. And it wouldn't even affect probate.

 

[Mrs. Rannous]

Michigan

After living in our house for almost 30 years, we recently (November) had the opportunity to buy my parents house, on a lake. One of the big benefits (or so we thought) of buying my parents house was that the taxes wouldn't get uncapped. They've been in their house for almost 20 years and our taxes were pretty close to the same. Fast forward to this week and our tax assessment comes in and our taxable value went thru the roof. I called on it and because me AND my wife are on the deed, they can uncap 50%. They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us". Anybody have any insight on this?? Is it possible to have a "corrected deed" done in just my name? or has that ship sailed?

I think you are looking for the info about halfway down the page "Uncapping Michigan Property Taxes". You may need to find an attorney to fix this one.

 

[Mrs. Rannous]

They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us".

The "first degree relative" part seems to apply here.

 

[playin4beer]

They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us".

The "first degree relative" part seems to apply here.

That was my argument.. The tax assessor said they interpret "Affinity in the first degree" to apply to me and my wife, not my wife and my parents. They said, "It's the way we've always done it, if you can show us something that says otherwise, we'll consider changing it".

 

[Mrs. Rannous]

They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us".

The "first degree relative" part seems to apply here.

That was my argument.. The tax assessor said they interpret "Affinity in the first degree" to apply to me and my wife, not my wife and my parents. They said, "It's the way we've always done it, if you can show us something that says otherwise, we'll consider changing it".

It's not transitive as far as I can tell. Your parents could add you. You could then add your spouse. But it has to chain like that, I think.

 

[playin4beer]

They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us".

The "first degree relative" part seems to apply here.

That was my argument.. The tax assessor said they interpret "Affinity in the first degree" to apply to me and my wife, not my wife and my parents. They said, "It's the way we've always done it, if you can show us something that says otherwise, we'll consider changing it".

It's not transitive as far as I can tell. Your parents could add you. You could then add your spouse. But it has to chain like that, I think.

That's what they are telling me.. which makes no sense to me. They can add me, I can add her, but it can't go to the both of us?

 

[nirad3]

Yeah hit up an an attorney, it will probably be worth it.

 

[Bob Loblaw]

I am an appraiser for a CA county assessor's office. Look into recording a rescission deed.

The laws are written to be very specific. It's to protect the community as a whole, to ensure that everyone is taxed fairly and equitably. We have many instances each year where a legal entity (LLC, trust, LP, etc.) will transfer its property (many times with an assessed value in the tens of millions) to the same legal entity (in name) trying to circumvent a tax increase, but it still gets re-assessed at market value because the members (and/or their ownership percentages) change.

I am not familiar with tax law in Michigan, but in CA, in order for a tax basis to transfer inter-generationally (Prop 19), your parents would have to transfer their property to you, and within a year you would have to file a homeowners exemption (a decrease of $7,000 in assessed value - not taxes owed) claiming the new property as your primary residence. There is no "policing" of this requirement, it's a situation where one is checking the right boxes to make it work.

 

[Ministry of Pain]

"Talk to Your Lawyer"

-Seriously, I wouldn't make a move without understanding the legalities fully