Power of Attorney for Real Estate in Michigan

Using a power of attorney for real estate transactions in Michigan involves rules that don't apply to other types of POA authority. The document must be recorded, specific authority categories must be checked, and the relationship between a POA and a Lady Bird Deed can either complement your plan or create conflicts if not handled correctly.

What Authority the Agent Needs

On the UPOAA statutory form (MCL 556.401), the principal must initial the Real Property authority category. This grants the agent authority to:

• Buy, sell, or exchange real estate
• Manage, maintain, and improve property
• Execute leases and collect rent
• Pay property taxes, assessments, and mortgages
• Handle insurance on the property
• Execute and deliver deeds, mortgages, and other real estate instruments

Without this category checked, the agent has no authority over real property transactions, regardless of what other categories are selected.

Recording the POA

When an agent uses a POA to execute a real estate transaction in Michigan, the POA itself (or a certified copy) must be recorded with the Register of Deeds in the county where the property is located, alongside the deed or mortgage it authorizes. Recording fee: $30 flat (MCL 600.2567).

This recording serves two purposes:

1. It establishes the chain of authority in the public property records
2. It gives notice to future title searchers that the transaction was conducted by an agent, not the property owner directly

Title companies and buyers' attorneys will require this as a condition of closing. A POA that isn't on record with the Register of Deeds creates a cloud on the title.

Property Transfer Tax Affidavit

When real property is transferred in Michigan, the transferor (or their agent) must file a Property Transfer Affidavit (Form L-4260) with the local assessor within 45 days of the transfer. This is true whether the transfer is done by the principal directly or through an agent under a POA.

The affidavit determines whether the property's taxable value is "uncapped" — meaning it can be reassessed to the current market value instead of staying at the capped value that accumulates during ownership.

POA and Lady Bird Deeds

Michigan's Lady Bird Deed (Enhanced Life Estate Deed) is a probate-avoidance tool that transfers property automatically at the owner's death. If the principal already has a Lady Bird Deed on their property, the POA agent should be aware of several interactions:

The agent cannot revoke a Lady Bird Deed. The power to revoke or amend an Enhanced Life Estate Deed belongs to the grantor personally (through the reserved general power of appointment). Unless the POA explicitly grants authority over trusts and beneficiary designations — the "hot powers" that must be separately initialed — the agent cannot alter or revoke the Lady Bird Deed.

The agent can still manage the property during the principal's lifetime. Even with a Lady Bird Deed in place, the principal retains full ownership and control during their lifetime. An agent with real property authority under the POA can pay taxes, arrange repairs, manage tenants, and handle routine property matters.

Selling the property cancels the Lady Bird Deed. If the agent sells the property under the POA, the Lady Bird Deed's remainder interest is extinguished. The property transfers to the buyer free and clear, and the death-transfer provisions no longer apply.

Property Tax Uncapping Exemptions

When a POA agent transfers property after the principal's death (which technically cannot happen — all POA authority terminates at death), or when a Lady Bird Deed triggers an automatic transfer, Michigan's property tax uncapping exemptions may apply.

Transfers to close relatives — spouse, parent, child, grandchild, sibling — are exempt from property tax uncapping under MCL 211.27a(7)(s). The new owner must file a Property Transfer Affidavit claiming the exemption within 45 days.

This exemption applies regardless of whether the transfer happens through a Lady Bird Deed, a will, intestate succession, or a trust. It does not apply to transfers to non-family members.

Practical Tips for Real Estate POA Use

Get the POA notarized. This is always recommended, but it's especially critical for real estate transactions. Title companies will not close a transaction based on a witnessed-only POA.

Have the agent present the original POA. Title companies and the Register of Deeds require the original or a certified copy, not a photocopy.

Coordinate with the title company early. Contact the title company or closing attorney before the closing date to confirm they will accept the POA. Some companies require advance review by their underwriter.

The Michigan Power of Attorney Kit covers real property authority in detail and includes a Lady Bird Deed checklist for integrating your POA with probate-avoidance planning.

See more Michigan guides →