The Transfer tax goes way back to Proposal A days when we completely altered the way we do property taxes in Michigan. I'm sure you are faimilar with Homestead and Non-Homestead taxes. This also came out of proposal A. Prior to that proposal, the only tax seller's paid at closing was the STAMP tax. Now we pay both. Its been that way for years and years.
The TRANSFER tax is 3/4 of 1% of the sales price (0.75%). So, if your sale price is $100,000, your transfer tax would be $750.
The STAMP tax is $1.10 per $1,000 of sales price. So, on a $100,000 home, the STAMP tax would be $110.
Most agents will lump these 2 taxes together and simply call them the "Transfer tax" and tell you the rate is actually 0.86% instead of 0.75%. That is because they are simply adding that stamp tax rate of 0.11% to the 0.75%. Either way, the stamp tax is a valid tax and the seller has always paid it in Michigan, even before Proposal A. It sounds like you have a closing coming up! Congratulations!!
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Your Title Company has the form, fill it out and they keep it on file. Then it will not show up on the seller expense side.