Michigan Title Insurance Rate and Transfer Tax Calculator
Easily calculate the Michigan title insurance rate and transfer tax for 1 - 4 residential properties. The seller usually pays the deed transfer taxes in Michigan, although, the payment is dictated by the sales contract. The title search and examination fees are included in the title insurance premium in Michigan. Title insurance rates are filed with the Commissioner of Insurance. The seller customarily pays for the owner's policy and the purchaser pays for the loan policy. Please send me an E-mail if you see an error or want to make a comment.
Seller closing costs in Michigan
rates must be filed and approved by the Michigan Insurance Bureau.
The cost for title insurance policy can vary between title insurers,
however, due to competition, the cost difference is minimal.
Read more about Michigan title insurance
The home seller typically pays the real estate transfer taxes. The state tax is calculated at $3.75 for every $500 of value transferred and the county tax is calculated at $0.55 for every $500 of value transferred.
In addition to the cost of the title insurance and transfer taxes, the seller can also incur a closing (settlement) fee, lien release tracking fee, over night mailing fees, payoff processing fee, and processing fee. The fees are approximately $700. Other negotiated costs that can be incurred are seller paid closing costs, home warranty, pest inspection, real estate agent commission etc.
The property taxes will be prorated at settlement. Sellers will not pay the buyer's real estate taxes and the buyer will not pay the seller any additional taxes to the home seller. If the property taxes have been paid and the buyer will occupy the home during the prepaid tax period, the prepaid taxes will be reimbursed to the seller. Use the property tax calculator to determine the tax proration
Can the seller rent back the house after settlement?
Fannie Mae, Freddie Mac (conventional mortgages) and FHA require
owner occupant home buyers to move into a financed property within
60 days of settlement (close of escrow) to meet owner-occupancy
The fine print in the settlement papers gives the lender the right to initiate foreclosure proceedings against the borrower for failing to take occupancy.
Rent back agreements are great for sellers, but can be dangerous for the home buyer. What if the seller/tenant damages the property? And will the home owner's insurance company cover a claim? What if the seller decides to remain in the home longer than agreed? Rent back agreements should only be written by an attorney, and should be avoided if possible.