House Introduced Bill 4843

HOUSE BILL No. 4843

May 27, 1997, Introduced by Reps. Freeman, McBryde, Wetters, Mans, Mathieu, Kaza, Martinez, Callahan, Richner, Hale and Gubow and referred to the Committee on Local Government.

A bill to amend 1937 PA 103, entitled

"An act to prescribe certain conditions relative to the execution
of instruments entitled to be recorded in the office of the reg-
ister of deeds,"

by amending section 1 (MCL 565.201).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. (1) No AN instrument by which the title to real

2 estate or any interest therein IN REAL ESTATE is conveyed,

3 assigned, encumbered or otherwise disposed of, executed after

4 the effective date of this act shall NOT be received for record

5 by the register of deeds of any county of the state unless the

6 same INSTRUMENT complies with each of the following

7 requirements:

8 (a) The name of each person who executed such THE

9 instrument shall be legibly printed, typewritten, or stamped upon

10 such THE instrument immediately beneath the signature of such

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1 THE person and the address of each such person shall be

2 printed, typewritten, or stamped upon the face of the instrument.

3 ;

4 (b) No A discrepancy shall NOT exist between the name of

5 such THE person as it appears either in the body of such THE

6 instrument, the acknowledgment or jurat, as printed, typewritten,

7 or stamped upon such THE instrument by the signature, or in the

8 signature of such THE person. ;

9 (c) The name of each witness to such THE instrument shall

10 be legibly printed, typewritten, or stamped upon such THE

11 instrument immediately beneath the signature of such THE

12 witness. ;

13 (d) The name of any notary public whose signature appears

14 upon such THE instrument shall be legibly printed, typewriten,

15 or stamped upon such THE instrument immediately beneath the

16 signature of such THE notary public. ;

17 (e) Wherever in this act it is required that the name of a

18 person shall be " printed, typewritten, or stamped upon

19 such THE instrument immediately beneath the signature " of

20 such THE person, it is the intent of the legislature to require

21 that such THE signature be written upon such THE instrument

22 directly preceding such THE name so " printed, typewritten,

23 or stamped. ". Such THE signature shall not , however, be

24 superimposed upon such THE name so as to render either

25 illegible. Such THE instrument shall , however, be entitled

26 to be received for record if such THE name and signature are

27 in the discretion of the register of deeds so placed upon such

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1 THE instrument as to render the connection between the 2 NAME

2 AND THE SIGNATURE apparent. Any instrument received and recorded

3 by a register of deeds shall be conclusively presumed to comply

4 with the requirements of this act. The requirements contained in

5 this act shall be cumulative to the requirements imposed by any

6 other act relating to the recording of instruments. ;

7 (f) The address of each of the grantees in each deed of con-

8 veyance or assignment of real estate, including the street number

9 address if located within territory where such street number

10 addresses are in common use, or, if not, the post office address

11 shall be legibly printed, typewritten, or stamped in such THE

12 instrument. ;

13 (g) Instruments shall not be typewritten or printed in type

14 smaller than 8 point size, and the size of any sheet in any

15 such AN instrument shall not exceed 8 1/2 by 14 inches, and

16 shall be legible and on paper of not less than 13 (17x22--500)

17 pound weight. Nothing in this subdivision shall affect instru-

18 ments executed outside the state or the filing or recording of

19 plats or other instruments, the size of which are regulated by

20 law.

21 (2) THE REGISTER OF DEEDS SHALL NOT RECEIVE FOR RECORD A

22 LIEN ON THE REAL OR PERSONAL PROPERTY OF ANOTHER PERSON UNLESS

23 THE PERSON PRESENTING THE LIEN PRESENTS BOTH OF THE FOLLOWING:

24 (A) A FULL AND FAIR ACCOUNTING OF THE FACTS THAT SUPPORT

25 RECORDING OF THE INSTRUMENT OF ENCUMBRANCE AND SUPPORTING DOCU-

26 MENTATION, AS AVAILABLE.

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1 (B) PROOF OF SERVICE THAT ACTUAL NOTICE HAS BEEN GIVEN TO

2 THE RECORDED LANDOWNER OF THE LAND TO WHICH THE INSTRUMENT OF

3 ENCUMBRANCE APPLIES.

4 (3) SUBSECTION (2) DOES NOT APPLY TO ANY OF THE FOLLOWING:

5 (A) A TAX LIEN THAT IS NOT REQUIRED TO BE RECORDED PURSUANT

6 TO THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO

7 211.157.

8 (B) THE FILING OF AN INSTRUMENT OF ENCUMBRANCE AUTHORIZED BY

9 STATE STATUTE OR FEDERAL STATUTE.

10 (C) THE FILING OF A CONSENSUAL AGREEMENT TO ENCUMBER REAL

11 PROPERTY ENTERED INTO BETWEEN THE OWNER OF REAL PROPERTY AND THE

12 PERSON WHO SEEKS TO RECORD AN ENCUMBRANCE. A CONSENSUAL AGREE-

13 MENT INCLUDES BUT IS NOT LIMITED TO A MORTGAGE, LOAN AGREEMENT,

14 LAND CONTRACT, OR OTHER CONSENSUAL OR CONTRACTUAL AGREEMENT OF

15 WHATEVER DESCRIPTION ENTERED INTO BETWEEN THE OWNER OF REAL PROP-

16 ERTY AND THE PERSON WHO SEEKS TO RECORD AN ENCUMBRANCE.

17 (D) THE FILING OF AN ENCUMBRANCE AUTHORIZED IN A FINAL ORDER

18 BY A COURT OF COMPETENT JURISDICTION.

19 (E) A FILING OF A LEVY, ATTACHMENT, LIEN, LIS PENDENS,

20 SHERIFF'S CERTIFICATE, MARSHAL'S CERTIFICATE, OR OTHER INSTRUMENT

21 OF ENCUMBRANCE BY A COMMERCIAL LENDING INSTITUTION. AS USED IN

22 THIS SECTION, "COMMERCIAL LENDING INSTITUTION" MEANS ANY OF THE

23 FOLLOWING:

24 (i) A STATE OR NATIONALLY CHARTERED BANK.

25 (ii) A STATE OR FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCI-

26 ATION OR SAVINGS BANK.

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1 (iii) A STATE OR FEDERALLY CHARTERED CREDIT UNION.

2 (iv) ANY OTHER STATE OR FEDERALLY CHARTERED LENDING

3 INSTITUTION OR REGULATED AFFILIATE OR REGULATED SUBSIDIARY OF ANY

4 ENTITY LISTED IN THIS SUBPARAGRAPH OR SUBPARAGRAPHS (i) TO

5 (iii).

6 (v) AN INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS

7 STATE PURSUANT TO THE INSURANCE CODE OF 1956, 1956 PA 218, MCL

8 500.100 TO 500.8302.

9 (vi) A MOTOR VEHICLE FINANCE COMPANY SUBJECT TO THE MOTOR

10 VEHICLE SALES FINANCE ACT, 1950 (EX SESS) PA 27, MCL 492.101 TO

11 492.141, WITH NET ASSETS IN EXCESS OF $50,000,000.00.

12 (vii) A FOREIGN BANK.

13 (viii) A RETIREMENT FUND REGULATED PURSUANT TO STATE LAW, OR

14 A PENSION FUND OF A LOCAL UNIT OF GOVERNMENT OR A PENSION FUND

15 REGULATED PURSUANT TO FEDERAL LAW WITH NET ASSETS IN EXCESS OF

16 $50,000,000.00.

17 (ix) A FEDERAL, STATE, OR LOCAL AGENCY AUTHORIZED BY LAW TO

18 HOLD A SECURITY INTEREST IN REAL PROPERTY OR A LOCAL UNIT OF GOV-

19 ERNMENT HOLDING A REVERSIONARY INTEREST IN REAL PROPERTY.

20 (x) A NONPROFIT TAX EXEMPT ORGANIZATION CREATED TO PROMOTE

21 ECONOMIC DEVELOPMENT IN WHICH A MAJORITY OF THE ORGANIZATION'S

22 ASSETS ARE HELD BY A LOCAL UNIT OF GOVERNMENT.

23 (xi) AN ENTITY WITHIN THE FEDERALLY CHARTERED FARM CREDIT

24 SYSTEM.

25 (xii) A LICENSEE UNDER THE MORTGAGE BROKERS, LENDERS, AND

26 SERVICERS LICENSING ACT, 1987 PA 173, MCL 445.1651 TO 445.1684.

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1 (xiii) A HOLDER UNDER THE HOME IMPROVEMENT FINANCE ACT, 1965

2 PA 332, MCL 445.1101 TO 445.1431.

3 (xiv) A RETAIL SELLER UNDER THE RETAIL INSTALLMENT SALES

4 ACT, 1966 PA 224, MCL 445.851 TO 445.873.

5 (xv) A LICENSEE UNDER 1981 PA 125, MCL 493.51 TO 493.81,

6 PERTAINING TO SECONDARY MORTGAGES.

7 (xvi) A LICENSEE UNDER THE CONSUMER FINANCIAL SERVICES ACT,

8 1988 PA 161, MCL 487.2051 TO 487.2072.

9 (xvii) A LICENSEE UNDER THE REGULATORY LOAN ACT OF 1968,

10 1939 PA 21, MCL 493.1 TO 493.26.

11 (xviii) A REGULATED LENDER UNDER THE CREDIT REFORM ACT, 1995

12 PA 162, 445.1851 TO 445.1864.

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