HOUSE BILL No. 5364

 

 

December 13, 2017, Introduced by Rep. Schor and referred to the Committee on Financial Services.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 5728 (MCL 600.5728).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5728. (1) Possession may be recovered under section 5726

 

only after the vendee or person holding possession under him the

 

vendee has been served with a written notice of forfeiture and has

 

failed in the required time to pay moneys money required to be paid

 

under the contract or to cure any other material breach of the

 

contract. Unless the parties have agreed in writing to a longer

 

time, the person served with a notice of forfeiture shall have has

 

15 days thereafter after being served before he or she is required

 

to pay moneys money required to be paid under the contract and cure

 

other material breaches of the contract or to deliver possession of

 

the premises.


     (2) The A notice of forfeiture shall under this section must

 

state the names of the parties to the contract, and the date of its

 

the contract's execution, and, if applicable, the date of the

 

recording of the contract or a certificate of residential land

 

contract as described in section 4 of 1879 PA 237, MCL 565.354,

 

concerning the land, give the address or legal description of the

 

premises, specify the unpaid amount of moneys money required to be

 

paid under the contract and the dates on which payments thereof of

 

the money were due, specify any other material breaches of the

 

contract, and shall declare forfeiture of the contract effective in

 

15 days, or any specified longer time, after service of the notice,

 

unless the money required to be paid under the contract is paid and

 

any other material breaches of the contract are cured within that

 

time. The notice shall must be dated and signed by the person

 

entitled to possession, his or the person's attorney or agent.

 

     (3) A notice of forfeiture under this section is not effective

 

for any purpose unless the land contract, or a certificate of

 

residential land contract as described in section 4 of 1879 PA 237,

 

MCL 565.354, concerning the land has been recorded with the

 

register of deeds for the county in which the affected property is

 

located. To be effective, the land contract or certificate of

 

residential land contract must have been recorded for whichever of

 

the following is less:

 

     (a) Half the time elapsed from the execution of the land

 

contract to the date of the notice.

 

     (b) One year.

 

     (4) Subsection (3) only applies to contracts for the sale of


land with 1 to 4 residential units.

 

     Enacting section 1. Section 5728 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.5728, as amended by this amendatory

 

act, only applies to land contracts entered into on or after the

 

effective date of this amendatory act.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5365 (request no.

 

01181'17 *) of the 99th Legislature is enacted into law.