Rafaeli, LLC v. Oakland County
2020The Michigan Supreme Court ruled that retaining surplus proceeds from a tax foreclosure sale is an unconstitutional taking.
MI
Michigan
Tax Deed
Michigan is a tax deed state where counties conduct annual online auctions to sell tax-foreclosed properties. The process is governed by the General Property Tax Act, which extinguishes the former owner's redemption rights upon the entry of a foreclosure judgment. Winning bidders receive a quitclaim deed, and the government must return any surplus proceeds to the former owner.
| Upcoming auctions | 0 |
| Counties covered | 83 |
| BS&A municipalities | 1364 |
| Scored properties | 0 |
| Last updated | Apr 15, 2026 |
Quick facts
- Sale type
- Tax deed
- Redemption period
- None post-sale
- Sale frequency
- Annual (July–Nov)
- Minimum bid
- Taxes + fees
- Deed type
- Quitclaim
- Bidder deposit
- $1,000 typical
Statutory framework
| Sale Type | Tax Deed |
| Redemption Period | There is no post-sale redemption period in Michigan. The former owner's right to redeem is extinguished upon the entry of the foreclosure judgment, which typically occurs on March 31. |
| Penalty / Interest | There is no penalty or interest for the purchaser as the property is sold outright. For delinquent taxpayers prior to foreclosure, interest accrues at a non-compounded rate of 0.5% per month starting from March 1. |
| Jurisdiction Type | County |
| Jurisdiction Count | 83 |
| Typical Sale Month | July through November |
| Assessor Portal | — |
| GIS Portal | — |
| Tax Portal | — |
Sale mechanics
Auctions are primarily conducted online. Bidders must pre-register and provide a refundable deposit, often a $1,000 pre-authorization hold. The minimum bid is set to cover all back taxes, interest, penalties, and fees. Payment is typically required within five business days via certified funds or wire transfer.
Post-sale obligations
The winning bidder receives a quitclaim deed and assumes immediate responsibility for the property. Eviction of occupants must be processed through the local district court. There is no post-sale redemption notification requirement for the buyer.
Quiet title cost estimator
Estimate attorney and court costs for clearing title after a Michigan tax deed purchase.
Estimated cost$2,500
Timeline6 mo.
Notable counties
Key Michigan counties for tax deed investors.
Wayne County
Has the highest sale volume in the state and often holds multiple auctions per year.
Oakland County
Frequently cited in landmark litigation regarding surplus proceeds.
Recent statutory changes
- MCL 211.78t (Effective Jan 1, 2021) established a formal process for former owners to claim surplus proceeds from tax foreclosure sales following the Rafaeli decision.
How to bid at a Michigan tax deed auction
Step-by-step process for participating in Michigan tax deed sales.
- 1
Research the catalog
Review the list of properties and minimum bids on the county-designated auction platform.
- 2
Register online
Create an account on the auction website and provide required identification.
- 3
Post the deposit
Submit the required pre-authorization or deposit to activate bidding privileges.
- 4
Submit bids
Place maximum bids during the designated auction window.
- 5
Pay the balance
Submit full payment via certified funds within the county's specified deadline.
Applicable statutes
Primary statute sections governing tax deed sales in Michigan.
MCL 211.78k
Governs the judicial foreclosure hearing and the vesting of absolute title.
MCL 211.78m
Governs the sale of foreclosed property at public auction.
MCL 211.78t
Governs the process for claiming surplus proceeds.
MCL 600.2932
Governs actions to quiet title.
Notable case law
Landmark court decisions affecting Michigan tax deed investors.
Tyler v. Hennepin County
2023A U.S. Supreme Court decision confirming that governments cannot retain surplus equity from tax foreclosures, reinforcing the Rafaeli principle.
Frequently asked questions
Common questions from Michigan tax deed investors.
- Yes, it is highly recommended. Most title insurance underwriters will not issue a policy on a tax-deed property without a court order quieting title.
- If the foreclosure process followed statutory notice requirements, the sale is generally secure. However, challenges regarding notice or surplus proceeds are common.
- Generally, no. Most counties explicitly state that properties are sold as-is and do not allow interior inspections.
- Costs typically range from $1,500 to $5,000 for uncontested actions, depending on the complexity of the title defects.
- Yes. While most liens are extinguished, certain easements, private deed restrictions, and specific environmental liens may survive.
- Under MCL 211.78t, former owners may file a claim to recover proceeds from the sale that exceed the total tax debt and allowable costs.
Do I need a quiet title action after a Michigan tax deed purchase?
What happens if the former owner challenges a Michigan tax sale?
Can I inspect properties before bidding?
What is the average cost of a quiet title action?
Are there liens that survive the tax sale?
How are surplus proceeds handled?
Title Risk Flags
Properties are sold via quitclaim deed, often requiring a quiet title action to clear clouds for title insurance. Certain environmental liens held by governmental agencies may survive the foreclosure process.
Data sourced from public state statutes, county recorder offices, and AuctionSift's proprietary county monitoring network. Updated weekly.