Land contract versus Quit Claim Deed

[Diamondmine]

Jurisdiction

Michigan

Greetings.
Back in around 2013 or earlier my spouse bought some property from a friend of his and they created the land contract.
This is for Michigan.
October 12th, 2018. They then signed a quit claim deed to turn property over to him.
It wasnt until 2019 the tax assessor mailed us a packet of overdue taxes from way back. Stating uncapping started when they signed a land contract. We had to pay a huge amount of uncapping taxes from years back. Ive read the laws and find it hard to believe thats when it uncaps.
All taxes were paid to current to his friend. The tax bill was still in his friends name right up to the quit claim deed. Also we have a copy of a tax statement dated 2018 winter and payable december 2018. ? Property quit claimed October 2018.
If they charged us uncapping because of a land contract. How can they when he was still making payments to his friend and the bills right up to 2018 were still in his friends name. I think we got screwed. Our attorney said there was nothing he could do. I differ. Please advise. Thank you.

 

[flyingron]

A quit claim deed makes no representations so is largely irrelevant here.

The question is whether the land contract stated that the taxes were to be paid by the seller. Such would have been unusual.

The taxes were uncapped as soon as the land contract was entered into. You should have been paying the higher rate. No lawyer will be able to fix the rate increase issue.

If your attorney is not a real estate attorney, you might have one review the land contract to see if you are owed some money for the taxes.

 

[PayrollHRGuy]

Michigan Legislature - Section 211.27a

(6) As used in this act, "transfer of ownership" means the conveyance of title to or a present interest in property, including the beneficial use of the property, the value of which is substantially equal to the value of the fee interest. Transfer of ownership of property includes, but is not limited to, the following:
(a) A conveyance by deed.
(b) A conveyance by land contract. The taxable value of property conveyed by a land contract executed after December 31, 1994 shall be adjusted under subsection (3) for the calendar year following the year in which the contract is entered into and shall not be subsequently adjusted under subsection (3) when the deed conveying title to the property is recorded in the office of the register of deeds in the county in which the property is located.

 

[Diamondmine]

A quit claim deed makes no representations so is largely irrelevant here.

The question is whether the land contract stated that the taxes were to be paid by the seller. Such would have been unusual.

The taxes were uncapped as soon as the land contract was entered into. You should have been paying the higher rate. No lawyer will be able to fix the rate increase issue.

If your attorney is not a real estate attorney, you might have one review the land contract to see if you are owed some money for the taxes.

Thank you for your quick reply.
We moved from another state and our attorney, nor the courthouse nor anyone made us aware that when we purchased property and not being a relative, had uncapping coming. Our bad I guess, however, at the moment of Land Contract, the tax advisor then, should have sent an updated uncapping bill at that time. Correct?

 

[PayrollHRGuy]

Thank you for your quick reply.
We moved from another state and our attorney, nor the courthouse nor anyone made us aware that when we purchased property and not being a relative, had uncapping coming. Our bad I guess, however, at the moment of Land Contract, the tax advisor then, should have sent an updated uncapping bill at that time. Correct?

Who is this "tax advisor" you speak of?

 

[Diamondmine]

Who is this "tax advisor" you speak of?

What i mean is the tax assessor. The land contract was entered in to possibly around 2021. The land contract was never filed with the courthouse. In october, when the quit claim deed was signed, it was discovered (i think they brought it in for proof on that day) thats when they went back but not until jan 2019 to uncap all the way back. They didnt know it had to be recorded ( the land contract) none of us knew about this law. Not even the attorney.

 

[army judge]

The land contract was entered in to possibly around 2021.

Am I posting to Sleepy Joey Bee?

Never mind, but 2021 has yet to arrive.

Most of us are finishing out the beautiful month of August, in the year of our Lord 2019.

The exact day depends upon which side of the International Date Line you are presently ensconced.

For me it is 28 August 2019, one day before (or as the universe likes to call it, GREATEST BIRTHDAY EVE) the greatest person ever born of woman celebrates his 39th birthday, AGAIN, a very special holiday all over the known universe, MY BIRTHDAY.

 

[PayrollHRGuy]

What i mean is the tax assessor. The land contract was entered in to possibly around 2021. The land contract was never filed with the courthouse. In october, when the quit claim deed was signed, it was discovered (i think they brought it in for proof on that day) thats when they went back but not until jan 2019 to uncap all the way back. They didnt know it had to be recorded ( the land contract) none of us knew about this law. Not even the attorney.

I assume you mean 2013 since that is what you wrote in the OP.

How would you expect the assessor to notify anyone of something they didn't know about at the time?