Michigan: Paying Back Taxes on Inherited Land When You Are Not on the Deed — What to Know | Michigan Probate | FastCounsel
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Michigan: Paying Back Taxes on Inherited Land When You Are Not on the Deed — What to Know

Detailed Answer

Short answer: Under Michigan law, paying the back property taxes on land you inherited does not automatically make you the owner if your name is not on the deed. The county will accept payment and maintain the tax record, but legal ownership transfers only by deed, probate distribution, or a court order. You may have legal options to protect the money you spent or to obtain ownership, but you usually must take extra steps (record a claim, open probate, or file suit) rather than rely on the tax payment alone.

How Michigan treats a third-party payment of property taxes

When someone pays delinquent taxes in Michigan, the payment clears the tax delinquency for the parcel. The payment does not change title. The taxing units are paid what they are owed; the county treasurer posts the payment to the parcel’s account. The county acts to collect taxes and enforce tax liens under the General Property Tax Act, MCL 211.1 et seq. (see the Act’s entry: MCL 211.1).

Why paying taxes does not equal ownership

  • Title to land is created and transferred by deed, will, probate distribution, or a court order. A taxpayer’s payment is an accounting action, not a conveyance.
  • The county’s interest is to collect taxes; it is not required to investigate or change ownership based on who remitted payment.
  • If the property is in the process of probate or otherwise transferring after death, the legal owner is whoever holds title under the probate court’s distribution or under a valid deed or beneficiary designation.

Common scenarios and likely outcomes

1) You paid the unpaid taxes for an inherited parcel but no deed change has been recorded

Result: The owner of record remains the same. You have a claim for reimbursement against the owner of record if they accept the benefit, but that claim is contractual or equitable — not an automatic transfer of title.

2) You paid taxes to protect the property from tax foreclosure

Result: Paying taxes prevents or cures the tax delinquency. It may stop a pending tax foreclosure sale, but payment alone does not grant you ownership unless you later arrange a formal transfer (for example, the owner signs a deed to you or the probate court awards title). If the county has already foreclosed, different rules apply under the foreclosure provisions of the General Property Tax Act (see parts of MCL 211.78, which govern tax foreclosure procedures: MCL 211.78).

3) You paid and then lived on the property for many years

Result: Long, continuous, exclusive possession can raise adverse possession claims in Michigan, but the requirements are strict and typically require a continuous possession for the statutory period (see the statute-of-limitations/adverse-possession time frame: MCL 600.5801). Adverse possession is fact-specific and generally not a quick route to title. Paying taxes alone is rarely sufficient without the other legal elements (open, exclusive, hostile, continuous possession for the statutory period).

Practical legal remedies and protections

If you pay taxes but are not the owner of record, consider these actions to protect your money and pursue ownership:

  • Get a written agreement before paying. A signed agreement with the owner or heirs can state that payment creates a lien, a reimbursement right, or an obligation to transfer title. A written contract is the simplest protection.
  • Record a lien or contract document. If you have a written loan or agreement, record it with the county register of deeds to put subsequent buyers or lenders on notice.
  • Open probate or get the title formally transferred. If the property is part of a decedent’s estate, follow Michigan probate procedures so the court can distribute title to the rightful heirs or beneficiaries. If probate is already opened, ask the personal representative to transfer title.
  • Seek a declaratory judgment, quiet-title action, or suit for unjust enrichment. If the owner refuses to reimburse you or the title situation is disputed, you may need to bring a court case asking the court to declare rights or to require repayment. Courts can impose an equitable lien or constructive trust in limited circumstances where fairness requires it.
  • Consider adverse possession only after consulting an attorney. Adverse possession claims are risky and fact-intensive; Michigan’s statutes and caselaw set strict requirements for success.

Who to contact and what records to check

  • County Register of Deeds — to review the current deed and any recorded instruments.
  • County Treasurer or Tax Office — to confirm the payment, get receipts, and learn about any outstanding delinquencies or foreclosure steps.
  • Probate Court — if the property is part of a decedent’s estate, check whether a probate case is open and who the personal representative is.
  • Real estate or probate attorney — for drafting agreements, recording liens, or filing necessary court actions.

Key statutes to review

  • General Property Tax Act, MCL 211.1 et seq. — governs property tax collection and tax foreclosure procedures: MCL 211.1.
  • Tax foreclosure provisions (selected sections), MCL 211.78 and following — explain foreclosure mechanics: MCL 211.78.
  • Statute of limitations/adverse possession period, MCL 600.5801 — sets time limits relevant to claims involving possession of land: MCL 600.5801.

Bottom line

Paying back taxes protects the property from tax enforcement and preserves value for the owner, but it does not by itself create ownership in Michigan. To turn your payment into legal ownership or to secure repayment, you will usually need a written agreement, a recorded claim, a probate transfer, or a court remedy. Take steps now — document payments, get written agreements, and consult a Michigan real estate or probate attorney if the owner will not cooperate.

Helpful Hints

  • Always get a written receipt from the county treasurer for any tax payments you make.
  • Ask the owner(s) of record to sign a simple written agreement before you pay: state repayment terms or that payment is consideration for a future deed transfer.
  • Record any agreement or loan document with the county register of deeds to protect your interest against third parties.
  • If the property is part of an estate, ask the probate court clerk whether a small estate affidavit, summary disposition, or full probate is required to transfer title.
  • Preserve all communication and records (emails, texts, canceled checks) showing you paid taxes and the reason for payment.
  • Contact a Michigan attorney early if there is any dispute about ownership or repayment; legal remedies are time-sensitive.

Disclaimer: This article explains general Michigan rules and common outcomes; it is for educational purposes only and not legal advice. Laws change and facts matter. For advice about your situation, consult a licensed Michigan attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.