A property transfer affidavit is an important form that must be filed with the taxing authority in the local city or township anytime property is transferred in order to ensure correct assessment for tax purposes. The new owner must file within 45 days of transfer or face a penalty of $5/day (maximum of $200).
Generally, a transfer will cause the property taxes to be “uncapped,” but thankfully there are many exceptions to that rule. If you fall under one of those exceptions, it is important that you choose the correct exception on the form. If you do so, you may be able to avoid a property tax increase. The law is very rigid and it is recommend that you consult with an experienced attorney whenever you transfer property via a deed, land contract, or a lease.