Key Takeaways
- Michigan closings can be conducted by title companies, attorneys, or escrow officers
- The Closing Disclosure must be provided at least 3 business days before closing per federal law
- Michigan uses warranty deeds and quitclaim deeds for property transfers
- Property taxes in Michigan are typically paid in advance (not arrears)
- Deeds are recorded with the Register of Deeds in the county where property is located
Last updated: January 2026
Michigan Closing Procedures
Michigan has specific requirements for real estate closings that differ from some other states.
Who Conducts Closings
In Michigan, closings can be conducted by:
| Closing Agent | Description |
|---|---|
| Title Company | Most common for residential transactions |
| Attorney | May conduct closings |
| Escrow Officer | Licensed to handle closings |
| Broker | In limited circumstances |
Title Company Role
Title companies typically:
- Conduct title search
- Issue title insurance
- Prepare closing documents
- Conduct the closing
- Disburse funds
- Record documents
Pre-Closing Requirements
Closing Disclosure (Federal TRID Rules)
| Document | Timing |
|---|---|
| Loan Estimate | Within 3 business days of application |
| Closing Disclosure | At least 3 business days before closing |
| Changes requiring new 3-day wait | APR increase, loan product change, prepayment penalty added |
Title Search and Insurance
The closing agent typically:
- Searches public records for title defects
- Examines chain of title
- Identifies liens, encumbrances, easements
- Issues title insurance policy
Types of Deeds in Michigan
Warranty Deed
Provides the greatest protection to the buyer:
- Warrants title against all defects
- Guarantees right to convey
- Covenants of quiet enjoyment
- Most common in residential sales
Quitclaim Deed
Provides no warranty:
- Transfers only the interest the grantor has (if any)
- No promises about title quality
- Used between family members, to clear title issues
- Not typical for regular sales
Covenant Deed
Provides limited warranty:
- Warrants only against defects during seller's ownership
- Does not cover prior owners' actions
Prorations at Closing
Michigan uses specific proration methods:
Property Taxes
Michigan property taxes are typically paid in advance (summer and winter taxes):
| Item | Proration Method |
|---|---|
| Summer Taxes | Due July 1, cover July-December |
| Winter Taxes | Due December 1, cover January-June |
| Proration | Based on when taxes are due |
Other Common Prorations
| Item | Typical Proration |
|---|---|
| HOA dues | Based on payment schedule |
| Utility bills | As of closing date |
| Rent (if applicable) | Prorated to closing |
Recording Requirements
Where to Record
Deeds are recorded with the Register of Deeds in the county where the property is located.
Transfer Tax
Michigan has a real estate transfer tax:
- State rate: $3.75 per $500 of value ($7.50 per $1,000)
- County rate: $0.55 per $500 of value ($1.10 per $1,000)
- Combined: $8.60 per $1,000 of purchase price
- Typically paid by seller (negotiable)
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Test Your Knowledge
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Where are real estate deeds recorded in Michigan?
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What is the combined state and county transfer tax rate in Michigan?
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