Property: other; citations to the motor vehicle sales finance act in 1846 RS 65; revise. Amends sec. 25 of 1846 RS 65 (MCL 565.25). TIE BAR WITH: SB 0739'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill amends the 1846 Revised Statutes of Michigan (MCL 565.25) to clarify when the recording of certain instruments of encumbrance, such as liens and mortgages, constitutes ‘perfection’ of the encumbrance. It outlines specific requirements for providing a full accounting of facts and proof of notice to the property owner, and establishes exemptions for various entities, including tax liens, authorized filings, consensual agreements, court orders, and specific types of lending institutions. The bill also includes a provision for liability if an encumbrance is recorded with the intent to harass or intimidate.
Key provisions
- Requires a full accounting of facts and supporting documentation when recording an encumbrance.
- Requires proof of service and notice to the property owner.
- Exempts certain tax liens from the requirements.
- Exempts filings authorized by state or federal statutes.
- Exempts consensual agreements related to real property encumbrances (mortgages, loans, etc.).
- Exempts filings ordered by a court.
- Defines ‘commercial lending institution’ to include banks, savings associations, credit unions, insurance companies, and motor vehicle finance companies with significant assets.
- Establishes liability for recording an encumbrance with the intent to harass or intimidate.
Who is affected
- Property owners
- Lenders and financial institutions
- Real estate attorneys
- Courts
Bill text
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- Senate Introduced Bill
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