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. When the POA grants real-property authority, a copy must be recorded with the county Register of Deeds, 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, a copy of the POA must be recorded with the Register of Deeds in the county where the property is located. 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 commonly require this as a condition of closing. A POA that isn't on record with the Register of Deeds can delay title review and closing because the recorded chain of authority is incomplete.

Property Transfer Tax Affidavit

When real property is transferred in Michigan, the transferor (or their agent) must file a Property Transfer Affidavit (Form L-4156) 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 assessor uses the affidavit to determine 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 principal retains the power to revoke or amend a Lady Bird Deed when the deed explicitly reserves a general inter vivos power of appointment. If the principal is incapacitated, an agent can execute a deed on the principal's behalf only if the financial POA grants real property authority; have the title company or an estate-planning attorney review any proposed change.

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 principal or an agent with real-property authority sells the property under the POA, the Lady Bird Deed's remainder interest is extinguished. The buyer takes the property without that remainder interest, and the death-transfer provisions no longer apply.

Property Tax Uncapping Exemptions

After the principal's death, a POA agent cannot transfer property under the POA. When a Lady Bird Deed triggers an automatic transfer, Michigan's property tax uncapping exemptions may apply.

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

The research specifically supports this close-family treatment for a properly structured Lady Bird Deed. Transfers by will, intestate succession, trust, or to a non-family beneficiary require separate review under the applicable property-tax rules.

Practical Tips for Real Estate POA Use

Get the POA notarized. This is especially important for real estate transactions: notarization creates the statutory presumption of genuineness and triggers the UPOAA's 7-business-day bank-acceptance rule. A witnessed-only POA can be legally valid and durable, but it does not carry that presumption.

Have the agent provide a copy of the POA to the title company and Register of Deeds, and keep the original accessible. The title company or Register may specify whether it needs an original or certified copy.

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 →