HOUSE BILL No. 5398

 

 

January 11, 2018, Introduced by Rep. Lucido and referred to the Committee on Judiciary.

 

     A bill to amend 1991 PA 133, entitled

 

"An act to allow the use and recording of certain documents

regarding trusts in the case of real property that is conveyed or

otherwise affected by a trust; and to prescribe their effect,"

 

by amending the title and sections 1 and 5 (MCL 565.431 and

 

565.435); and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to allow the use and recording of certain documents

 

regarding trusts in the case of for real property that is conveyed

 

or otherwise affected by a trust; and to prescribe their effect.

 

     Sec. 1. An instrument conveying, encumbering, that conveys,

 

encumbers, or otherwise affecting an interest in affects real

 

property, executed pursuant to an express trust, may be accompanied

 

either by a either of the following:


     (a) A copy of the each operative trust agreement or by a

 

instrument. As used in this subdivision, "trust instrument" means

 

that term as defined in section 7103 of the estates and protected

 

individuals code, 1998 PA 386, MCL 700.7103.

 

     (b) A certificate of trust existence and authority, as

 

described in sections 2 and 3.under section 7913 of the estates and

 

protected individuals code, 1998 PA 386, MCL 700.7913, that

 

includes the legal description of the affected real property.

 

     Sec. 5. A purchaser or other party relying upon on the

 

information contained included in a recorded certificate of trust

 

existence and authority shall be afforded under section 7913 of the

 

estates and protected individuals code, 1998 PA 386, MCL 700.7913,

 

has the same protection as is provided to a subsequent purchaser in

 

good faith under section 29 of chapter 65 of the Revised Statutes

 

of 1846 RS 65, being section MCL 565.29. of the Michigan Compiled

 

Laws, and shall A purchaser or other party described in this

 

section is not be required to further examine the trust agreement,

 

instrument, unless an instrument amending or revoking the trust

 

agreement instrument or certificate of trust existence and

 

authority under section 7913 of the estates and protected

 

individuals code, 1998 PA 386, MCL 700.7913, is recorded in the

 

same office in which the trust agreement instrument or certificate

 

of trust existence and authority under section 7913 of the estates

 

and protected individuals code, 1998 PA 386, MCL 700.7913, was

 

recorded. As used in this section, "trust instrument" means that

 

term as defined in section 7103 of the estates and protected

 

individuals code, 1998 PA 386, MCL 700.7103.


     Enacting section 1. Sections 2, 3, 4, and 6 of 1991 PA 133,

 

MCL 565.432, 565.433, 565.434, and 565.436, are repealed.