HOUSE BILL No. 4273
February 11, 1997, Introduced by Reps. Tesanovich, Cherry, Anthony, Gagliardi, Prusi, Hale, Bobier, Parks, Bogardus, Horton, Lowe, LaForge and Hanley and referred to the Committee on Forestry and Mineral Rights. A bill to amend 1945 PA 200, entitled "An act to define a marketable record title to an interest in land; to require the filing of notices of claim of interest in such land in certain cases within a definite period of time and to require the recording thereof; to make invalid and of no force or effect all claims with respect to the land affected thereby where no such notices of claim of interest are filed within the required period; to provide for certain penalties for filing slanderous notices of claim of interest, and to provide certain exceptions to the applicability and operation thereof," by amending the title and sections 1, 2, 3, and 6 (MCL 565.101, 565.102, 565.103, and 565.106) and by adding sections 2a and 2b. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to define a marketable record title to an interest in 3 land OTHER THAN AN OIL OR GAS INTEREST; to require the filing of 4 notices of claim of interest in such land in certain cases within 5 a definite period of time and to require the recording thereof; 6 to make invalid and of no force or effect all claims with respect 00950'97 JCB 2 1 to the land affected thereby where no such notices of claim of 2 interest are filed within the required period; to provide for 3 certain penalties for filing slanderous notices of claim of 4 interest, and to provide certain exceptions to the applicability 5 and operation thereof. 6 Sec. 1. Any person, having the legal capacity to own land 7 in this state, who has an unbroken chain of title of record to 8 any interest in land for 40 20 years FOR MINERAL INTERESTS AND 9 40 YEARS FOR OTHER INTERESTS, shall at the end of such THE 10 APPLICABLE period be deemed CONSIDERED to have a marketable 11 record title to such THAT interest, subject only to such 12 claims thereto TO THAT INTEREST and defects of title as are not 13 extinguished or barred by application of the provisions of suc- 14 ceeding sections of this act and subject also to such ANY 15 interests and defects as are inherent in the provisions and limi- 16 tations contained in the muniments of which such THE chain of 17 record title is formed and which have been recorded during said 18 40 THE 20-year period : Provided, however, That no one FOR 19 MINERAL INTERESTS AND THE 40-YEAR PERIOD FOR OTHER INTERESTS. 20 HOWEVER, A PERSON shall NOT be deemed CONSIDERED to have such 21 a marketable record title by reason of the terms of this act, 22 if the land in which such THE interest exists is in the hostile 23 possession of another. 24 Sec. 2. A EXCEPT AS PROVIDED IN SECTION 2A, A person 25 shall be deemed IS CONSIDERED to have the AN unbroken chain 26 of title to an interest in land as such terms are used in the 00950'97 3 1 preceding PROVIDED IN section 1 when the official public records 2 disclose EITHER OF THE FOLLOWING: 3 (a) A conveyance or other title transaction not less than 4 40 20 years in the past FOR MINERAL INTERESTS AND 40 YEARS FOR 5 OTHER INTERESTS, which said conveyance or other title transac- 6 tion purports to create such THE interest in such THAT 7 person, with nothing appearing of record purporting to divest 8 such THAT person of such THE purported interest. ; or, 9 (b) A conveyance or other title transaction not less than 10 40 20 years in the past FOR MINERAL INTERESTS AND 40 YEARS FOR 11 OTHER INTERESTS, which said conveyance or other title transac- 12 tion purports to create such THE interest in some other person 13 and other conveyances or title transactions of record by which 14 such THE purported interest has become vested in the person 15 first referred to in this section, with nothing appearing of 16 record purporting to divest the person first referred to in this 17 section of such THE purported interest. 18 SEC. 2A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, 19 WITHIN 2 YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION, EACH 20 PERSON WITH A MINERAL INTEREST IN REAL PROPERTY SHALL RECORD WITH 21 THE REGISTER OF DEEDS NOTICE OF HIS OR HER MINERAL INTEREST IN 22 THE MANNER PROVIDED IN SECTION 5. ANY MINERAL INTEREST THAT IS 23 NOT RECORDED WITHIN THE TIME PERIOD PROVIDED IN THIS SECTION IS 24 VOID AND THAT INTEREST REVERTS TO THE SURFACE OWNER OF THE 25 PROPERTY. 00950'97 4 1 SEC. 2B. THIS ACT DOES NOT APPLY TO OIL AND GAS INTERESTS 2 IN REAL PROPERTY THAT ARE REGULATED UNDER 1963 PA 42, MCL 554.291 3 TO 554.294. 4 Sec. 3. Such marketable MARKETABLE title shall be held by 5 such A person and shall be taken by his OR HER successors in 6 interest free and clear of any and all interests, claims, and 7 charges whatsoever the existence of which depends in whole or in 8 part upon any act, transaction, event, or omission that occurred 9 prior to such 40 THE 20-year period FOR MINERAL INTERESTS, AND 10 THE 40-YEAR PERIOD FOR OTHER INTERESTS, and all such interest 11 INTERESTS, claims, and charges are hereby declared to be null and 12 void and of no effect whatever at law or in equity. : 13 Provided, however, That any such HOWEVER, EXCEPT AS PROVIDED IN 14 SECTION 2A, AN interest, claim, or charge may be preserved and 15 kept effective by filing for record during such 40 THE 20-year 16 period FOR MINERAL INTERESTS AND THE 40-YEAR PERIOD FOR OTHER 17 INTERESTS, a notice in writing, duly verified by oath, setting 18 forth the nature of the claims CLAIM. No A disability or 19 lack of knowledge of any kind on the part of anyone shall DOES 20 NOT suspend the running of said 40 THE 20-year period FOR MIN- 21 ERAL INTERESTS OR THE 40-YEAR PERIOD FOR OTHER INTERESTS. For 22 the purpose of recording notices of claim for homestead interests 23 the date from which the 40 20-year period FOR MINERAL INTERESTS 24 AND THE 40-YEAR PERIOD FOR OTHER INTERESTS shall run shall be the 25 date of recording of the instrument, non-joinder NONJOINDER, in 26 which is the basis for such THE claim. Such A notice may be 27 filed for record by the claimant or by any other person acting on 00950'97 5 1 behalf of any claimant who is IF 1 OR MORE OF THE FOLLOWING 2 CONDITIONS EXIST: 3 (a) Under THE CLAIMANT IS UNDER a disability. , 4 (b) Unable THE CLAIMANT IS UNABLE to assert a claim on his 5 OR HER own behalf. , 6 (c) One THE CLAIMANT IS 1 of a class but whose identity 7 cannot be established or is uncertain at the time of filing 8 such THE notice of claim for record. 9 Sec. 6. This act shall be construed to effect the legisla- 10 tive purpose of simplifying and facilitating land title transac- 11 tions by allowing persons dealing with the record title owner, as 12 defined herein IN THIS ACT, to rely on the record title cover- 13 ing a period of not more than 40 20 years FOR MINERAL INTERESTS 14 AND 40 YEARS FOR OTHER INTERESTS prior to the date of such deal- 15 ing and to that end to extinguish all claims that affect or may 16 affect the interest thus dealt with, the existence of which 17 claims arises out of or depends upon any act, transaction, event, 18 or omission antedating such 40 THE 20-year period FOR MINERAL 19 INTERESTS AND THE 40-YEAR PERIOD FOR OTHER INTERESTS, unless 20 within such 40 THE 20-year period FOR MINERAL INTERESTS OR THE 21 40-YEAR PERIOD FOR OTHER INTERESTS a notice of claim as provided 22 in section 3 hereof shall have HAS been duly filed for 23 record. The claims hereby extinguished shall mean BY THIS 24 ACT ARE any and all interests of any nature whatever, however 25 denominated, and whether such THE claims are asserted by a 26 person sui juris or under disability, whether such THE person 00950'97 6 1 is within or without OUTSIDE the state, and whether such THE 2 person is natural or corporate, or private or governmental. 00950'97 Final page. JCB