When transferring property in Michigan, it's important to ensure that taxes are current, as they become a lien on the property when the tax bill is issued. Failure to pay taxes will result in the deed not being recorded. The purchase agreement between the seller and the buyer often includes tax proration, which is a two-step process that takes into account who was in the property during the year and who paid the tax bill. The credits are divided 50/50 based on the days of occupancy of that year.