Closing costs in Michigan: what buyers and sellers pay

Why there is no single “typical” total

Some Michigan closing costs are fixed by law or by a county: the transfer tax and recording fees. Others are set by private companies and depend on your loan, your contract and the closing date: lender charges, title insurance, escrow or closing fees, inspections and prorated taxes.

Two federal forms show your own numbers. The lender must send a Loan Estimate within three business days of receiving your application, and a Closing Disclosure at least three business days before you close (Consumer Financial Protection Bureau). Compare the two line by line. For a walk-through of each charge, see closing costs explained.

Line by line: what each cost is

Transfer tax (seller). The state charges $3.75 per $500 of value and the county charges $0.55 per $500 in Wayne County. The seller is liable under both laws. Details and exemptions are on our transfer tax page.

Recording fees. The Wayne County Register of Deeds charges $26 plus a $4 state survey and remonumentation fee, where it applies, for $30 per document, whatever the page count. This is the first increase since 1996. A purchase with a mortgage usually records two documents, a deed and a mortgage, so $60 in recording fees is a fair planning figure. Who pays for each is set by your purchase agreement.

Tax certificates. Before the Register of Deeds records a deed, state law requires certificates that no tax liens or tax titles exist and that taxes have been paid for the five years before the date of the instrument (MCL 211.135). Ask your title company how it is handled in your sale.

Prorated property taxes. Unless the contract says otherwise, the seller is responsible for the annual taxes from the levy date up to the day title passes, and the buyer for the rest (MCL 211.2(4)). The levy date is the day a tax becomes due and payable. Our Michigan property tax guide explains the summer and winter bills.

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and the firms it hires. No Michigan table applies. Compare them across lenders on the standard Loan Estimate form.

Title insurance and escrow or closing fees. The sources I read for this article do not publish a Michigan premium schedule or a fee cap. The premium and the closing fee appear on your Loan Estimate, so ask each title company for a written quote. See title insurance explained and the escrow account guide.

Inspection, survey, homeowners insurance. These are paid to private providers and depend on the home. See home inspection cost and homeowners insurance.

Example: a $200,000 sale in Wayne County

This is an example, not a quote. It shows only the lines that law or the county fixes.

The seller’s $1,720 equals 0.86% of the price. Everything else on the closing statement (lender fees, title premium, prorations, insurance) comes from your own Loan Estimate and contract.

After closing: one more step for buyers

The buyer must tell the local assessor about the transfer within 45 days, on a form prescribed by the State Tax Commission (MCL 211.27a(10)). The sale also lifts the cap on taxable value, so the first tax bill after a purchase can be higher than the seller’s. See property tax in Michigan. For the local market, see Detroit.