Q: Michigan Quit-claim Deed - if exempt from MI Real Estate Transfer Tax, does actual consideration need to be listed?
My 2 brothers and I inherited our parents' house upon their deaths. I and one of my brothers are selling the house to our other brother. I'm attempting to write the quit-claim deed myself. I've found where this transaction is exempt from Michigan Real Estate Transfer Tax because we are siblings, but need to know if the actual price we're selling it to my brother for needs to be disclosed on the quit-claim deed. Or can I just state nominal consideration of $1? Thanks for your help!
A:
Trying to write a deed is akin to trying to do your own appendectomy. It is 'easy' surgery, but it's rather poor practice to 'just do the research' and try it yourself.
That said, there are significant tax implications for the consideration listed in the deed, and it could end up costing both you and your siblings a LOT to just say '$1'. Bear in mind that the transfer probably won't incur capital gains tax if things have been structured properly and you're selling the land for the value that was inventoried, but without the 'paper trail' to show things, the tax people can get twitchy about things.
Get a local licensed attorney to help you! It won't cost a great deal, but the advice will be priceless. Seriously, don't try to DIY this!
-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.
I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice
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