Michigan State Title Insurance Practice Exam

In Michigan, the county transfer tax is assessed at the rate of $0.55 per $500 of the sale price or fractional part thereof. This means when a property is sold, the transfer tax is calculated based on the total consideration or sale price of the property. The established rate serves to generate revenue for local governments and is important for anyone involved in real estate transactions in the state, such as buyers, sellers, and title companies. Knowing the correct rate is essential for ensuring compliance with state regulations and for accurate financial planning in real estate deals.

The other options do not reflect the current rate established by Michigan law, as they are either lower or higher than the correct amount, which could lead to miscalculations in transfer tax obligations during property transactions.