Legal Question in Real Estate Law in Michigan
Property Transfer affidavit
when you hire a realator/attorney to do a quick claim deed should they file the property transfer aff? we found out 7 yrs. later ours did not file it and now we are being hit with late fees, etc. We had no clue about this and assumed all was done by him. Is there anything we can do about it? Is he liable for the late fees since we would never have had them if it was filed in a timely fashion? We were not even told that this was needed and we simply trusted this man.
2 Answers from Attorneys
Re: Property Transfer affidavit
You would have to look through your closing package to determine if your realtor/lawyer had you sign off or acknowledge you needed to file the affidavit. It is common now to make the buyers responsible to fill out the affidavit and file it within 45 days of the closing, however, each transaction is different.
If there is nothing in the file either way, I'd recommend sending him a demand letter with a copy of the notice from the city re: the fines.
If you don't get a response, your only other recourse is suing him in small claims court, but it would be your word against his that he never informed you about the need to file the affidavit, etc., and try to recoup your damages. After reviewing your closing file, you should try contacting him first to resolve, and see if he offers anything.
If the lawyer was hired just to prepare the Deed, and that's it, then he might be not be responsible (but if he handled the entire closing, then a Judge would likely determine he SHOULD have advised you re: the affidavit).
You'd also have to demonstrate that your city/township never contacted you - many municipalities send letters reminding the homeowner to file the affidavit - some do not - apparently yours does not.
But, your MAXIMUM liability to the city is only $200.00, so it's worth just paying the fines, filing your affidavit, and moving on (if he doesn't respond to your "demand letter"). Not worth your time in a lawsuit.
Re: Property Transfer affidavit
Unless the attorney was "closing" the sale of the property, it was probably not a requirement that he fill out and execute a property transfer affidavit.
The new owner of the property is typically responsible for filing the appropriate documents with the city or township. The maximum fee is $200 and it would not be worth your trouble to do anything more than pay the fee. There is no harm in calling the attorney however, to see what can be done.
If you have further questions or concerns, please contact me via my website at www.lawrefs.com.
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