HOUSE BILL No. 5512

 

December 4, 2007, Introduced by Reps. Bieda, Dean, Rick Jones and Polidori and referred to the Committee on Intergovernmental, Urban and Regional Affairs.

 

      A bill to amend 1846 RS 65, entitled

 

"Of alienation by deed, and the proof and recording of

conveyances, and the canceling of mortgages,"

 

by amending sections 24, 25, 27, 28, and 43 (MCL 565.24, 565.25,

 

565.27, 565.28, and 565.43), section 25 as amended by 1996 PA 526

 

and sections 28 and 43 as amended by 1992 PA 212, and by adding

 

section 24a; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 24. Every register of deeds shall keep an entry book of

 

 2  deeds and an entry book of mortgages, each page of which shall be

 

 3  divided into 6 columns, with title or heads to the respective

 

 4  columns, in the following form, to-wit:

 

 

 


 

Date of      Grantors Grantees  Township where               To whom delivered   Fee

Reception                      the land lies                (after being recorded)       (Fees)

                                                            and date (of delivery).      Received.

                                                                                  

                                                                                  

                                                                                  

                                                                                  

                                Town.     Range.    Section.                      

 

 

 9        He shall also keep a reception book of levies.

 

10        Where it is found desirable to consolidate reception book entries into 1 book, it may

 

11  be done by providing a sheet divided into 9 vertical columns with title or heading to the

 

12  respective columns in the following form:

 


 

 

 

1 RECEIPT      DATE OF     GRANTORS    GRANTEES    LOCATION  KIND OF   TO WHOM  DATE         FEES

2 NUMBER       RECEIPT     OR          OR          OF LAND   INSTRU-   DELIVERED  MAILED       RECEIVED

3              MONTH, DAY, MORTGAGORS  MORTGAGEES  TOWN,     MENT.                  

4              HOUR.       OR          OR          RANGE,                           

5                          DEFENDANTS  PLAINTIFFS  SECTION.                         

6                                                                                   

7                                                                                   

8 THIS                                                                              THIS

9 COLUMN                                                                            COLUMN

10             WOULD                                                                   WOULD

11             CONTAIN                                                                 CONTAIN

12             CONSECU-                                                                ALL

13             TIVE                                                                    STATUTORY

14             ENTRY                                                                   FEES

15             NUMBERS.                                                                CHARGED

 

 

 

 


 

 

 1        (1) Upon delivery of an instrument to the register of deeds

 

 2  for the purpose of recording, the register shall note the date,

 

 3  hour, and minute of delivery on the first page of the instrument.

 

 4        (2) Each instrument delivered to a register shall be

 

 5  accessible for public review. Accessibility may be satisfied by

 

 6  any of the following methods:

 

 7        (a) Providing the instrument inscribed in a tangible medium.

 

 8        (b) Providing at least the first page of the instrument,

 

 9  stored in an electronic or other medium.

 

10        (c) Providing a temporary searchable journal containing at

 

11  least the date of delivery, title of the instrument, and the

 

12  names of the parties to the instrument.

 

13        (3) Any information created or maintained in a temporary

 

14  searchable journal under subsection (2) may be destroyed when the

 

15  instrument is entered into the index described in section 28 of

 

16  this chapter or when the instrument is not accepted for

 

17  recording.

 

18        (4) A register shall not charge a fee for any review or

 

19  search under subsection (2), unless it involves the search of an

 

20  original instrument. An original instrument is available for

 

21  public review only in the presence of the register, deputy

 

22  register, or a representative of the register appointed for that

 

23  purpose. A reasonable fee, not to exceed $15.00 for each 15

 

24  minutes or fraction thereof, per name searched, may be charged

 

25  for any search or review of original instruments.

 

26        (5) Subsections (2) to (4) do not apply once the instrument

 


 1  is indexed as required in section 28 of this chapter.

 

 2        Sec. 24a. (1) The register's assignment of a liber and page

 

 3  or other unique identifying number is prima facie evidence that

 

 4  the instrument has satisfied all recording requirements,

 

 5  including the payment of fees, and has been accepted for

 

 6  recording. Subject to section 26 of this chapter, a recorded

 

 7  instrument is notice to all persons except the recorded landowner

 

 8  of the liens, rights, and interests acquired by or involved in

 

 9  the proceedings. All subsequent owners or encumbrances shall take

 

10  subject to the recorded liens, rights, or interests.

 

11        (2) An instrument is considered to be recorded at the time

 

12  and date of delivery to the register if the instrument has

 

13  satisfied all recording requirements, including the payment of

 

14  fees.

 

15        (3) If more than 1 date and time of delivery appear upon an

 

16  instrument, the later date and time controls in establishing the

 

17  priority of the instrument unless, within 90 days after the date

 

18  alleged to be the correct date of delivery of the instrument, a

 

19  court action is commenced to establish the earlier time and date

 

20  of delivery and a notice of lis pendens pertaining to the real

 

21  property subject to the dispute is recorded.

 

22        Sec. 25. (1) In the entry book of deeds, the register shall

 

23  enter all deeds of conveyance absolute in their terms, and not

 

24  intended as mortgages or securities, and all copies left as

 

25  cautions. In the entry book of mortgages the register shall enter

 

26  all mortgages and other deeds intended as securities, and all

 

27  assignments of any mortgages or securities. In the entry book of

 


 1  levies the register shall enter all levies, attachments, liens,

 

 2  notices of lis pendens, sheriffs' certificates of sale, United

 

 3  States marshals' certificates of sale, other instruments of

 

 4  encumbrances, and documentation required under subsection (2),

 

 5  noting in the books, the day, hour, and minute of receipt, and

 

 6  other particulars, in the appropriate columns in the order in

 

 7  which the instruments are respectively received.

 

 8        (1) (2) Except as otherwise provided in subsection (3) (2),

 

 9  the recording of a levy, attachment, lien, lis pendens, sheriff's

 

10  certificate, marshal's certificate, or other instrument of

 

11  encumbrance does not perfect the instrument of encumbrance unless

 

12  both of the following are found by a court of competent

 

13  jurisdiction to have accompanied the instrument when it was

 

14  presented delivered to the register for entry under section 24(1)

 

15  of this chapter:

 

16        (a) A full and fair accounting of the facts that support

 

17  recording of the instrument of encumbrance and supporting

 

18  documentation, as available.

 

19        (b) Proof of service that actual notice has been given to

 

20  the recorded landowner of the land to which the instrument of

 

21  encumbrance applies.

 

22        (2) (3) Subsection (2) (1) does not apply to any of the

 

23  following:

 

24        (a) A tax lien that is not required to be recorded pursuant

 

25  to the general property tax act, Act No. 206 of the Public Acts

 

26  of 1893, being sections 211.1 to 211.157 of the Michigan Compiled

 

27  Laws 1893 PA 206, MCL 211.1 to 211.155.

 


 1        (b) The filing of an instrument of encumbrance authorized by

 

 2  state statute or federal statute.

 

 3        (c) The filing of a consensual agreement to encumber real

 

 4  property entered into between the owner of real property and the

 

 5  person who seeks to record an encumbrance. A consensual agreement

 

 6  includes but is not limited to a mortgage, loan agreement, land

 

 7  contract, or other consensual or contractual agreement of

 

 8  whatever description entered into between the owner of real

 

 9  property and the person who seeks to record an encumbrance.

 

10        (d) The filing of an encumbrance authorized in a final order

 

11  by a court of competent jurisdiction.

 

12        (e) A filing of a levy, attachment, lien, lis pendens,

 

13  sheriff's certificate, marshal's certificate, or other instrument

 

14  of encumbrance by a commercial lending institution. As used in

 

15  this section, "commercial lending institution" means any of the

 

16  following:

 

17        (i) A state or nationally chartered bank.

 

18        (ii) A state or federally chartered savings and loan

 

19  association or savings bank.

 

20        (iii) A state or federally chartered credit union.

 

21        (iv) Any other state or federally chartered lending

 

22  institution or regulated affiliate or regulated subsidiary of any

 

23  entity listed in this subparagraph or subparagraphs (i) to (iii).

 

24        (v) An insurance company authorized to do business in this

 

25  state pursuant to the insurance code of 1956, Act No. 218 of the

 

26  Public Acts of 1956, being sections 500.100 to 500.8302 of the

 

27  Michigan Compiled Laws 1956 PA 218, MCL 500.100 to 500.8302.

 


 1        (vi) A motor vehicle finance company subject to the motor

 

 2  vehicle sales finance act, Act No. 27 of the Public Acts of the

 

 3  Extra Session of 1950, being sections 492.101 to 492.141 of the

 

 4  Michigan Compiled Laws 1950 (Ex Sess) PA 27, MCL 492.101 to

 

 5  492.141, with net assets in excess of $50,000,000.00.

 

 6        (vii) A foreign bank.

 

 7        (viii) A retirement fund regulated pursuant to state law, or a

 

 8  pension fund of a local unit of government or a pension fund

 

 9  regulated pursuant to federal law with net assets in excess of

 

10  $50,000,000.00.

 

11        (ix) A federal, state, or local agency authorized by law to

 

12  hold a security interest in real property or a local unit of

 

13  government holding a reversionary interest in real property.

 

14        (x) A nonprofit tax exempt organization created to promote

 

15  economic development in which a majority of the organization's

 

16  assets are held by a local unit of government.

 

17        (xi) An entity within the federally chartered farm credit

 

18  system.

 

19        (xii) A licensee under the mortgage brokers, lenders, and

 

20  servicers licensing act, Act No. 173 of the Public Acts of 1987,

 

21  being sections 445.1651 to 445.1684 of the Michigan Compiled Laws

 

22  1987 PA 173, MCL 445.1651 to 445.1684.

 

23        (xiii) A holder under the home improvement finance act, Act

 

24  No. 332 of the Public Acts of 1965, being sections 445.1101 to

 

25  445.1431 of the Michigan Compiled Laws 1965 PA 332, MCL 445.1101

 

26  to 445.1431.

 

27        (xiv) A retail seller under the retail installment sales act,

 


 1  Act No. 224 of the Public Acts of 1966, being sections 445.851 to

 

 2  445.873 of the Michigan Compiled Laws 1966 PA 224, MCL 445.851 to

 

 3  445.873.

 

 4        (xv) A licensee under Act No. 125 of the Public Acts of 1981,

 

 5  being sections 493.51 to 493.81 of the Michigan Compiled Laws the

 

 6  secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81,

 

 7  pertaining to secondary mortgages.

 

 8        (xvi) A licensee under the consumer financial services act,

 

 9  Act No. 161 of the Public Acts of 1988, being sections 487.2051

 

10  to 487.2072 of the Michigan Compiled Laws 1988 PA 161, MCL

 

11  487.2051 to 487.2072.

 

12        (xvii) A licensee under the regulatory loan act, of 1963, Act

 

13  No. 21 of the Public Acts of 1939, being sections 493.1 to 493.26

 

14  of the Michigan Compiled Laws 1939 PA 21, MCL 493.1 to 493.24.

 

15        (xviii) A regulated lender under the credit reform act, Act

 

16  No. 162 of the Public Acts of 1995, being sections 445.1851 to

 

17  445.1864 of the Michigan Compiled Laws 1995 PA 162, MCL 445.1851

 

18  to 445.1864.

 

19        (4) The instrument shall be considered as recorded at the

 

20  time so noted and shall be notice to all persons except the

 

21  recorded landowner subject to subsection (2), of the liens,

 

22  rights, and interests acquired by or involved in the proceedings.

 

23  All subsequent owners or encumbrances shall take subject to the

 

24  perfected liens, rights, or interests.

 

25        (3) (5) A person who is not exempt under subsection (3) (2)

 

26  who encumbers property through the recording of a document an

 

27  instrument listed under subsection (2) (1) without lawful cause

 


 1  with the intent to harass or intimidate any person is liable for

 

 2  the penalties set forth in section 2907a of the revised

 

 3  judicature act of 1961, Act No. 236 of the Public Acts of 1961,

 

 4  being section 600.2907a of the Michigan Compiled Laws 1961 PA

 

 5  236, MCL 600.2907a.

 

 6        Sec. 27. The register shall certify upon every instrument

 

 7  recorded by him, he or she records the date and time when it was

 

 8  received accepted for recording, after the instrument met all

 

 9  recording requirements including the payment of fees, and a

 

10  reference to the book liber and page, or other unique identifying

 

11  number, where it is recorded.

 

12        Sec. 28. (1) Each register of deeds shall keep a proper

 

13  general permanent index to each set of books in which he or she

 

14  shall enter alphabetically the name of each party to each

 

15  instrument recorded by the register of deeds, with a reference to

 

16  the book and page where the instrument is recorded. In a county

 

17  in which reproductions pursuant to the records media act are

 

18  combined in 1 set of books, the register of deeds shall keep

 

19  separate indexes of the instruments. The register of deeds shall

 

20  also keep a separate index in which shall be entered daily a

 

21  minute of all discharges of mortgages as the discharges are

 

22  entered, whether by written discharge or entered upon the margin

 

23  of the record, together with a reference to the volume and page

 

24  where recorded, or entered upon the margin. of recorded

 

25  instruments by means of books or computerization or a combination

 

26  of the two. The index shall include the following information:

 

27        (a) Liber and page, or other unique identifying number.

 


 1        (b) Instrument type.

 

 2        (c) The name of each party to each instrument.

 

 3        (d) Date recorded, having met all recording requirements,

 

 4  including payment of fees.

 

 5        (e) Location of land; section, town and range, platted

 

 6  description, or other description authorized by law.

 

 7        (f) Other reference information as required.

 

 8        (2) Each computerized index required by this act may be

 

 9  maintained wholly, or in part, by computerization of the index

 

10  shall be maintained to allow for an alphabetical search of the

 

11  names of each party to each instrument recorded by the register

 

12  of deeds.

 

13        (3) Each computerized index shall be secured by a duplicate

 

14  index maintained at a separate location from the primary index.

 

15        (4) The primary index shall be secured by a code, key, or

 

16  other system designed to prohibit an unauthorized person from

 

17  altering the index.

 

18        Sec. 43. Every certificate described in section 42 of this

 

19  chapter, and the proof or acknowledgment of the certificate,

 

20  shall be recorded at full length, and a reference shall be made

 

21  to the book liber and page, or other unique identifying number,

 

22  containing the certificate, in the minute minutes of the

 

23  discharge of the mortgage made by the register upon the mortgage.

 

24  If the register of deeds is authorized by the board of

 

25  commissioners to reproduce deeds, mortgages, maps, instruments,

 

26  or writings, as provided in section 2 of Act No. 105 of the

 

27  Public Acts of 1964, being section 691.1102 of the Michigan

 


 1  Compiled Laws 1964 PA 105, MCL 691.1102, and the mortgage does

 

 2  not exist in a hard copy medium, it is not necessary for him or

 

 3  her to make reference to the book liber and page containing the

 

 4  certificate on the book or liber and page containing the

 

 5  mortgage. Instead, reference to the book liber and page

 

 6  containing the certificate shall be made in the index to the

 

 7  entry book permanent index of mortgages.

 

 8        Enacting section 1. Section 26 of 1846 RS 65, MCL 565.26, is

 

 9  repealed.