Real estate is often the most valuable asset in a Michigan probate estate — and the most complicated to handle. A family home in Macomb County, an investment property in Wayne County, a vacation cottage Up North — each presents its own set of legal, tax, and practical challenges that can delay probate, trigger unexpected costs, and create lasting disputes among heirs.

The reason real estate causes so many problems in probate comes down to a simple truth: you can’t split a house the way you split a bank account. Someone has to maintain it, insure it, pay the taxes on it, and eventually decide whether to keep it, sell it, or transfer it — all while navigating Michigan’s county-by-county probate procedures and property tax rules that catch families off guard.

For personal representatives and beneficiaries across Michigan, understanding how real estate moves through probate isn’t optional. Mistakes made early — failing to secure proper valuations, triggering an avoidable property tax increase, or selling without required authority — can cost families tens of thousands of dollars and months of delay. This guide explains how Michigan probate courts handle real property, where county-specific differences matter, and what every personal representative needs to know to protect the estate and the people it’s meant to serve.

How Real Estate Enters Probate in Michigan

Not all real estate goes through probate. Understanding what does — and what doesn’t — is the critical first step.

Real property passes through probate when it was held solely in the decedent’s name at the time of death with no surviving joint owner and no beneficiary designation or transfer mechanism in place. This is the default for many Michigan homeowners, and it means the property becomes part of the probate estate, subject to court oversight, creditor claims, and the administration process under Michigan’s Estates and Protected Individuals Code (MCL 700.1101 et seq.).

Real estate that avoids probate includes property held in joint tenancy with right of survivorship, property in a funded revocable living trust, property transferred through a Lady Bird deed (enhanced life estate deed), and property held as tenants by the entirety between spouses. When families plan ahead with these tools, the property passes directly to the surviving owner or beneficiary without court involvement.

“Many Michigan families don’t realize that a home titled solely in one spouse’s name — or in a deceased parent’s name alone — must go through probate even if the will says who should receive it. The will controls distribution, but probate is the legal process that makes it happen.”

For families who didn’t plan ahead, probate is the path forward. And for personal representatives, the work starts immediately.

Valuing Real Estate in Probate: Why the Date-of-Death Appraisal Matters

Under MCL 700.3706, the personal representative must prepare an inventory of the decedent’s property within 91 days of appointment, listing each asset at its fair market value as of the date of death. For real estate, this means obtaining a professional appraisal — not relying on the property’s tax assessment, Zillow estimate, or what a neighbor’s house sold for.

The date-of-death valuation serves two critical purposes:

• Stepped-up basis for capital gains. When beneficiaries inherit real property, their cost basis “steps up” to the fair market value at the date of death. If a parent purchased a home in Oakland County for $120,000 in 1990 and it was worth $350,000 at death, the beneficiary’s basis becomes $350,000. If they sell for $360,000, they owe capital gains tax on only $10,000 — not the $230,000 of appreciation that accumulated during the parent’s lifetime. An inaccurate or missing appraisal can cost beneficiaries this benefit.

• Equitable distribution among heirs. When multiple beneficiaries share an estate, accurate valuations prevent disputes about whether one heir received more than their fair share — particularly when one heir wants to keep the property and others want cash.

For Southeast Michigan properties, appraisal costs typically range from $300 to $600 for a standard residential home, though complex properties, commercial real estate, or Northern Michigan vacation properties may cost more.

The Personal Representative’s Authority to Sell Real Estate

One of the most common questions personal representatives face: Can I sell the house?

Under Michigan law, the answer depends on the type of administration and any restrictions in the will or court order.

MCL 700.3711 gives personal representatives broad authority over estate property, stating they have “the same power over the title to estate property that an absolute owner would have, in trust, however, for the benefit of creditors or others interested in the estate.” MCL 700.3715 further authorizes personal representatives to sell, mortgage, or lease real property when acting reasonably for the benefit of interested persons.

In unsupervised administration — the default in Michigan — the personal representative generally has authority to sell real estate without prior court approval, provided the will doesn’t restrict that power. Check your Letters of Authority for any limitations.

In supervised administration, the personal representative must petition the court for approval before selling. This requires filing Form PC 681 (Petition for Approval for Sale of Real Estate), providing notice to all interested parties, and attending a court hearing where the judge reviews the proposed sale terms.

“In our experience handling probate estates across Southeast Michigan, the most common mistake personal representatives make with real estate is acting too slowly. Every month a property sits vacant in probate is a month of property taxes, insurance, maintenance costs, and potential liability the estate absorbs — costs that reduce what beneficiaries ultimately receive.”

The Property Tax Trap: Understanding Michigan’s Uncapping Rules

This is where families get blindsided. Michigan’s property tax system, established by Proposal A of 1994, caps annual increases in a property’s taxable value to the lesser of 5% or the rate of inflation. But when a “transfer of ownership” occurs — including transfers through probate — the property’s taxable value uncaps to its full state equalized value under MCL 211.27a.

For a property that’s been in the family for decades, uncapping can double or even triple the annual property tax bill overnight. A home in Macomb County with a taxable value of $80,000 and a state equalized value of $175,000 could see its property taxes jump dramatically in the year following the transfer.

Exemptions That Protect Families

Not every probate transfer triggers uncapping. MCL 211.27a(7) provides critical exemptions:

• Transfers to a surviving spouse are exempt from uncapping
• Transfers of residential real property between first-degree relatives (parent to child, child to parent) are generally exempt if the property’s use doesn’t change — meaning the property remains classified as residential
• Lady Bird deed terminations to qualifying family members (for deeds created after December 31, 2014) may also be exempt if the transferee is a qualifying relative and the property remains residential

These exemptions can save families thousands of dollars per year in property taxes — but they apply only when the transfer is structured correctly. Transferring the home to the wrong person, using the wrong deed type, or failing to file the required Property Transfer Affidavit with the local assessor within 45 days can eliminate the exemption entirely.

“Under MCL 211.27a, the difference between a properly structured transfer and an improperly handled one can mean thousands of dollars in annual property taxes for your beneficiaries — every year they own the property. This is one of the most consequential and most overlooked aspects of real estate in Michigan probate.”

County-by-County Differences: What Personal Representatives Need to Know

Michigan’s probate laws under EPIC apply statewide, but procedural requirements vary by county. Each county probate court has its own local administrative orders, scheduling practices, and practical expectations that affect how quickly and smoothly real estate matters are resolved.

Oakland County Probate Court handles one of the highest volumes of probate cases in the state. The court moves efficiently but expects thorough filings. Real estate sales in supervised estates require detailed documentation of marketing efforts, comparable sales, and the proposed terms. Oakland County’s higher property values mean that appraisals, tax implications, and distribution disputes tend to involve larger dollar amounts.

Wayne County Probate Court serves the largest and most diverse population in Michigan. Heirs should be prepared for potentially longer processing times for hearings and orders. Wayne County also sees a significant number of properties with title issues — tax-reverted properties, clouded titles from incomplete prior transfers, and homes requiring extensive title searches before they can be sold or transferred.

Macomb County Probate Court processes cases with procedures similar to Oakland County. For Southeast Michigan families, Macomb County real estate often includes family homes held for decades, where property tax uncapping is a major concern.

Ingham County Probate Court (Lansing area) and Washtenaw County Probate Court (Ann Arbor area) serve Mid-Michigan and Central Michigan families. These courts may have shorter wait times for hearings but apply the same substantive EPIC standards.

Regardless of county, all deed recordings go through the county Register of Deeds, and each office has specific formatting requirements for deeds, including margin sizes, font requirements, and recording fees. A deed that fails to meet local formatting standards will be rejected — adding delay and cost.

Common Pitfalls When Handling Real Estate in Probate

Real estate in probate goes wrong in predictable ways. Knowing these pitfalls in advance is the difference between a smooth administration and a costly legal dispute.

• Heirs who disagree about what to do with the property. One sibling wants to keep the family home; another wants to sell. Without a clear plan — or a will that addresses the issue — the personal representative may need to petition the court for direction, adding time and expense.

• Failing to maintain insurance. Standard homeowner’s insurance policies often lapse or require modification when the homeowner dies. The personal representative must ensure the property is covered under an estate or vacancy policy. An uninsured loss during probate can devastate the estate.

• Ignoring the Principal Residence Exemption (PRE). If the deceased homeowner claimed a PRE under MCL 211.7cc, that exemption may need to be rescinded after death unless a surviving spouse continues to occupy the home as a principal residence. Failing to address the PRE properly can trigger back-tax assessments.

• Selling below fair market value. Personal representatives have a fiduciary duty to act in the estate’s best interest. Selling to a family member or acquaintance at a below-market price can expose the personal representative to personal liability and surcharge by the court.

• Title defects discovered during the sale. Missing deeds, boundary disputes, undisclosed liens, or old land contracts can surface during a title search and derail a sale. A title review early in the administration process — before listing the property — prevents surprises at closing.

Frequently Asked Questions About Real Estate in Michigan Probate

Can a personal representative sell a house without all the heirs agreeing?

In most unsupervised Michigan probate administrations, yes. Under MCL 700.3711 and MCL 700.3715, the personal representative has broad authority to sell estate property when acting in the estate’s best interest, even if individual heirs object. However, the personal representative must act as a fiduciary — meaning the sale must be at fair market value and for the benefit of the estate as a whole. Heirs who disagree can petition the court to review the transaction.

What is property tax uncapping, and will it affect the property I inherit?

Property tax uncapping occurs when a transfer of ownership causes the property’s taxable value to jump to its full state equalized value under MCL 211.27a. For long-held family properties, this can significantly increase the annual tax bill. However, certain transfers are exempt — including transfers to a surviving spouse and transfers of residential property between parents and children where the property use doesn’t change. Proper planning with a probate attorney can help preserve these exemptions.

How long does it take to sell real estate through probate in Michigan?

Timelines vary by county and whether the administration is supervised or unsupervised. In unsupervised administration, the personal representative can list and sell the property relatively quickly — often within two to four months of appointment, depending on market conditions. Supervised administration requires court approval, which adds four to eight weeks or more depending on the court’s calendar. Most full probate administrations in Michigan take six to twelve months to complete.

Does Michigan have a homestead exemption in probate?

Michigan’s probate homestead allowance under MCL 700.2402 provides a $15,000 allowance to the surviving spouse (or to minor and dependent children if there is no surviving spouse). This is a monetary allowance, not a right to keep the home itself. It is separate from the Principal Residence Exemption (PRE) for property tax purposes, which is governed by MCL 211.7cc. The homestead allowance is in addition to anything the surviving spouse receives under the will or intestate succession.

What happens to a mortgage when the homeowner dies?

The mortgage doesn’t disappear. The estate remains responsible for mortgage payments during administration. Federal law (the Garn-St. Germain Act) generally prevents lenders from enforcing a due-on-sale clause when property transfers to a surviving spouse or heir. However, if no one continues making payments, the lender can foreclose. The personal representative should contact the mortgage servicer promptly and ensure payments continue from estate funds.

Do I need a probate attorney to handle real estate in a Michigan estate?

Michigan law does not require a personal representative to hire an attorney for unsupervised administration. However, real estate in probate involves title transfers, tax implications, fiduciary obligations, and county-specific procedural requirements that create significant risk for errors. Given that probate administration typically costs $5,000 to $15,000+ depending on complexity, the cost of professional guidance is modest compared to the potential consequences of property tax uncapping, title defects, or fiduciary liability.

Take the Next Step: Protect the Estate and the People It’s Meant to Serve

Real estate in probate demands more than good intentions — it demands accurate valuations, proper authority, timely action, and awareness of Michigan’s property tax rules that most families don’t know exist until it’s too late. Every county has its own procedures, and every property has its own complications.

At Boroja, Bernier & Associates, we help families across Macomb County, Oakland County, Wayne County, and throughout Southeast Michigan and Mid-Michigan navigate probate with the precision and urgency these matters require. With our main office in Shelby Township and satellite offices in Troy, Ann Arbor, and Lansing, our probate attorneys understand the local courts, the local procedures, and the tax traps that cost families the most.

To schedule a consultation with the Michigan probate attorneys at Boroja, Bernier & Associates, call our law offices at (586) 991-7611. The sooner you get the right guidance, the more you protect.