SB-0929, As Passed Senate, December 9, 2004                                 

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

    HOUSE SUBSTITUTE FOR                                                        

                                                                                

    SENATE BILL NO. 929                                                         

                                                                                

    (As amended December 9, 2004)                                               

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 [A bill to amend 1961 PA 236, entitled                                             

                                                                                

    "Revised judicature act of 1961,"                                           

                                                                                

    by amending sections 2567, 3140, 3240, 6062, and 6066 (MCL 600.2567,        

                                                                                

     600.3150, 600.3240, 600.6062, and 600.6066), section 2567 as amended by

 

2002 PA 698 and section 3240 as amended by                                      

                                                                                

    2000 PA 380; and to repeal acts and parts of acts.]                         

                                                                                

    THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                                  

                     [Sec. 2567.  (1) Except as provided in subsection (3), a register of deeds is entitled to the following fees, which are not taxable as costs except as indicated:

     (a) For entering and recording a deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instrument, $8.00 for the first page and $3.00 for each additional and succeeding page. The fee shall be paid when the deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instrument is left for record.  Until December 31, 2006, the  The register of deeds shall deposit $5.00 of the total fee collected for each recording into the automation fund if a fund has been established under section 2568. For any document that assigns or discharges more than 1 instrument, $3.00 shall be added to the recording fee for each additional instrument assigned or discharged.

     (b) For copies of any records or papers, if required, $1.00 per page, taxable as costs if otherwise allowed.

     (c) For a seal to exemplification, $1.00.

     (d) For searching the records and files, on request, by the office of the register of deeds, 50 cents for each year for which grantor/grantee searches are made, with a minimum fee of $5.00, except that the fee for tract index searches shall be based upon the cost of establishing and maintaining a tract index.

     (e) For filing every other paper, and making an entry of it, if necessary, $1.00, unless otherwise specifically provided for.

     (f) For searching for every other paper, on request, by the office of the register of deeds, $1.00 for each paper examined.

     (2) In addition to any other fees prescribed in subsection (1) or (3), a register of deeds shall collect a fee of $2.00 for entering and recording a deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instrument. The fee shall be paid when the deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instrument is left for record.

    (3) A charter county may impose a fee schedule by ordinance or resolution with different amounts than the amounts prescribed by subsection (1). A charter county shall not impose a fee that is greater than the cost of the service for which the fee is charged.

    (4) As used in this section, "page" means 1 side of a single sheet of paper at least 8-1/2 inches by 11 inches in length and not exceeding 8-1/2 inches by 14 inches in length and not less than 20-pound weight.]                            

1       Sec. 3140.  (1) The mortgagor,  his  the mortgagor's heirs,                 

                                                                                

2   executors, or administrators, or any person lawfully claiming               

                                                                                

3   from or under  him or them  the mortgagor or the mortgagor's                

                                                                                

4   heirs, executors, or administrators may redeem the entire                   

                                                                                

5   premises sold by paying, within 6 months from the time of the               

                                                                                

6   sale, to the purchaser  , his  or the purchaser's executors,                

                                                                                

7   administrators, or assigns, or to the register of deeds in whose            

                                                                                

8   office the deed of sale is deposited as provided in the court               

                                                                                

9   rules, for the benefit of the purchaser, the sum which was bid              

                                                                                


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1   with interest from the  time  date of the sale at the interest              

                                                                                

2   rate  percent borne  provided for by the mortgage.                          

                                                                                

3       (2) The vendee of a land contract,  his  the vendee's heirs,                

                                                                                

4   executors, or administrators, or any person lawfully claiming               

                                                                                

5   from or under  him or them  the vendee or the vendee's heirs,               

                                                                                

6   executors, or administrators may redeem the entire premises sold            

                                                                                

7   within 6 months from the time of the sale by paying to the                  

                                                                                

8   purchaser  , his  or the purchaser's executors, administrators,             

                                                                                

9   or assigns, or to the register of deeds in whose office the deed            

                                                                                

10  of sale is deposited as provided in the court rules, for the                

                                                                                

11  benefit of the purchaser, the sum which was bid with interest               

                                                                                

12  from the  time  date of the sale at the interest rate  percent              

                                                                                

13  borne  provided for by the land contract.   In case                         

                                                                                

14      (3) The register of deeds shall not determine the amount                    

                                                                                

15  necessary for redemption.  The purchaser shall attach an                    

                                                                                

16  affidavit with the deed to be recorded under this section that              

                                                                                

17  states the exact amount required to redeem the property,                    

                                                                                

18  including any daily per diem amounts, and the date by which the             

                                                                                

19  property must be redeemed shall be stated on the certificate of             

                                                                                

20  auctioneer.  [                                                              

                                                                                

21                                                                              

                                                                                

22              ]  The purchaser may include in the affidavit the               

                                                                                

23  name of a designee responsible on behalf of the purchaser to                

                                                                                

24  assist the person redeeming the property in computing the exact             

                                                                                

25  amount required to redeem the property.  The designee may charge            

                                                                                

26  a fee as stated in the affidavit [and may be authorized by the purchaser to receive redemption funds].  The purchaser shall accept the                      

                                                                                

27  amount computed by the designee.                                            


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1       (4) If the sum for redemption is paid to the register of                    

                                                                                

2   deeds,  the sum of $5.00 shall be paid to him as  a fee of $5.00            

                                                                                

3   shall be paid for the care and custody of the redemption money.             

                                                                                

4   After these sums have been paid                                            

                                                                                

5       (5) If payments are made as provided under this section, the                

                                                                                

6   deed of sale is void.  and of no effect, but in case any  If a              

                                                                                

7   distinct lot or parcel separately sold is redeemed, leaving a               

                                                                                

8   portion of the premises unredeemed, then the deed of sale is                

                                                                                

9   inoperative merely  void only as to the portion or portions of             

                                                                                

10  the premises which are redeemed.  and to the portions not                   

                                                                                

11  redeemed it remains valid and of full effect.                               

        [(6) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.]                                                                       

12      Sec. 3240.  (1) A purchaser's deed is void if the mortgagor,                

                                                                                

13  the mortgagor's heirs, executors, or administrators, or any                 

                                                                                

14  person lawfully claiming under the mortgagor  ,  or the                     

                                                                                

15  mortgagor's heirs, executors, or administrators redeems the                 

                                                                                

16  entire premises sold by paying the amount required under                    

                                                                                

17  subsection (2), within the applicable time limit prescribed in              

                                                                                

18  subsections (7) to (12), to the purchaser  ,  or the purchaser's            

                                                                                

19  executors, administrators, or assigns, or to the register of                

                                                                                

20  deeds in whose office the deed is deposited for the benefit of              

                                                                                

21  the purchaser.                                                              

                                                                                

22      (2) The amount required to be paid under subsection (1) is                  

                                                                                

23  the sum that was bid for the entire premises sold, with interest            

                                                                                

24  from the  time  date of the sale at the interest rate  percent              

                                                                                

25  borne  provided for by the mortgage, together with the amount of            

                                                                                

26  the sheriff's fee paid by the purchaser under section 2558(2)(q),           

                                                                                

27  and an additional  $3.00  $5.00 as a fee for the care and custody           


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1   of the redemption money if the payment is made to the register of           

                                                                                

2   deeds.  The register of deeds shall not determine the amount                

                                                                                

3   necessary for redemption.  The purchaser shall attach an                    

                                                                                

4   affidavit with the deed to be recorded under this section that              

                                                                                

5   states the exact amount required to redeem the property under               

                                                                                

6   this subsection, including any daily per diem amounts, and the              

                                                                                

7   date by which the property must be redeemed shall be stated on              

                                                                                

8   the certificate of sale.  [                                                 

                                                                                

9                                                                               

                                                                                

10                                ]  The purchaser may include in the           

                                                                                

11  affidavit the name of a designee responsible on behalf of the               

                                                                                

12  purchaser to assist the person redeeming the property in                    

                                                                                

13  computing the exact amount required to redeem the property.  The            

                                                                                

14  designee may charge a fee as stated in the affidavit [and may be authorized by the purchaser to receive redemption funds].  The                                

                                                                                

15  purchaser shall accept the amount computed by the designee.                 

                                                                                

16      (3) If a distinct lot or parcel separately sold is redeemed,                

                                                                                

17  leaving a portion of the premises unredeemed, the deed shall be             

                                                                                

18  inoperative  void only to the redeemed parcel or parcels.  , and           

                                                                                

19  to those portions that have not been redeemed the deed shall                

                                                                                

20  remain valid.                                                               

                                                                                

21      (4) If after the sale the purchaser, the purchaser's heirs,                 

                                                                                

22  executors, or administrators, or any person lawfully claiming               

                                                                                

23  under the purchaser  ,  or the purchaser's heirs, executors, or             

                                                                                

24  administrators pays taxes assessed against the property, amounts            

                                                                                

25  necessary to redeem senior liens from foreclosure, condominium              

                                                                                

26  assessments, homeowner association assessments, community                   

                                                                                

27  association assessments, or premiums on an insurance policy                 


                                                                                

1   covering any buildings located on the property that under the               

                                                                                

2   terms of the mortgage it would have been the duty of the                    

                                                                                

3   mortgagor to pay if the mortgage had not been foreclosed and that           

                                                                                

4   are necessary to keep the policy in force until the expiration of           

                                                                                

5   the period of redemption, redemption shall be made only upon                

                                                                                

6   payment of the sum specified in subsection (2) plus the amounts             

                                                                                

7   specified in this subsection with interest on the amounts                   

                                                                                

8   specified in this subsection from the date of the payment to the            

                                                                                

9   date of redemption at the interest rate specified in the                    

                                                                                

10  mortgage, if all of the following are filed with the register of            

                                                                                

11  deeds with whom the deed is deposited:                                      

                                                                                

12      (a) An affidavit by the purchaser or someone in his or her                  

                                                                                

13  behalf who has knowledge of the facts of the payment showing the            

                                                                                

14  amount and items paid.                                                      

                                                                                

15      (b) The receipt or copy of the canceled check evidencing the                

                                                                                

16  payment of the taxes, amounts necessary to redeem senior liens              

                                                                                

17  from foreclosure, condominium assessments, homeowner association            

                                                                                

18  assessments, community association assessments, or insurance                

                                                                                

19  premiums.                                                                   

                                                                                

20      (c) An affidavit of an insurance agent of the insurance                     

                                                                                

21  company stating that the payment was made and what portion of the           

                                                                                

22  payment covers the premium for the period  prior to  before the             

                                                                                

23  expiration of the period of redemption.                                     

                                                                                

24      (5) If the redemption payment in subsection (4) includes an                 

                                                                                

25  amount used to redeem a senior lien from a nonjudicial                      

                                                                                

26  foreclosure, the mortgagor shall have the same defenses against             

                                                                                

27  the purchaser with respect to the amount used to redeem the                 


                                                                                

1   senior lien as the mortgagor would have had against the senior              

                                                                                

2   lien.                                                                       

                                                                                

3       (6) The register of deeds shall indorse on the documents                    

                                                                                

4   filed  pursuant to  under subsection (4) the time they are                  

                                                                                

5   received.  The register of deeds shall record the affidavit of              

                                                                                

6   the purchaser only and shall preserve in his or her files the               

                                                                                

7   recorded affidavit, receipts, insurance receipts, and insurance             

                                                                                

8   agent's affidavit until expiration of the period of redemption.             

                                                                                

9       (7) For a mortgage executed on or after January 1, 1965, on                 

                                                                                

10  commercial or industrial property, or multifamily residential               

                                                                                

11  property in excess of 4 units, the redemption period is 6 months            

                                                                                

12  from the  time  date of the sale.                                           

                                                                                

13      (8) For a mortgage executed on or after January 1, 1965, on                 

                                                                                

14  residential property not exceeding 4 units and not more than 3              

                                                                                

15  acres in size, if the amount claimed to be due on the mortgage at           

                                                                                

16  the date of the notice of foreclosure is more than 66-2/3% of the           

                                                                                

17  original indebtedness secured by the mortgage, the redemption               

                                                                                

18  period is 6 months.                                                         

                                                                                

19      (9) For a mortgage on residential property not exceeding 4                  

                                                                                

20  units and not more than 3 acres in size, if the property is                 

                                                                                

21  abandoned as determined  pursuant to  under section 3241, the               

                                                                                

22  redemption period is 3 months.                                              

                                                                                

23      (10) For a mortgage on residential property not exceeding 4                 

                                                                                

24  units and not more than 3 acres in size, if the amount claimed to           

                                                                                

25  be due on the mortgage at the date of the notice of foreclosure             

                                                                                

26  is more than 66-2/3% of the original indebtedness secured by the            

                                                                                

27  mortgage and the property is abandoned as determined  pursuant              


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1   to  under section 3241, the redemption period is 1 month.                   

                                                                                

2       (11) If the property is abandoned as determined  pursuant to                

                                                                                

3   under section 3241a, the redemption period is 30 days.                      

                                                                                

4       (12) In any other case, the redemption period is 1 year from                

                                                                                

5   the date of the sale.                                                       

        [(13) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.]                                                                       

6       Sec. 6062.  (1)  Within  Not later than 1 year from the                     

                                                                                

7   time  date when sale on execution is made, the real estate  so             

                                                                                

8   sold or any distinct lot, tract, or portion that is separately              

                                                                                

9   sold or the interest in real estate so sold  ,  may be redeemed             

                                                                                

10  by payment to the purchaser,  his  to the purchaser's personal              

                                                                                

11  representatives or assigns, or to the officer who makes  such               

                                                                                

12  the sale, or to the register of deeds in whose office such                  

                                                                                

13  certificate is recorded, for the use of  such  the purchaser, of            

                                                                                

14  the sum of money bid on the sale of  such  the lot or tract,                

                                                                                

15  together with the interest on that sum from the  time  date of              

                                                                                

16  sale, computed at the interest rate  per cent per annum borne               

                                                                                

17  provided for by the judgment under which  such  the sale was                

                                                                                

18  made.  The register of deeds shall not determine the amount                 

                                                                                

19  necessary for redemption.  The purchaser shall attach an                    

                                                                                

20  affidavit with the deed to be recorded under this section that              

                                                                                

21  states the exact amount required to redeem the property,                    

                                                                                

22  including any daily per diem amounts, and the date by which the             

                                                                                

23  property must be redeemed shall be stated in the certificate of             

                                                                                

24  sale.  [                                                                    

                                                                                

25                                                                              

                                                                                

26          ]  The purchaser may include in the affidavit the name of           

                                                                                

27  a designee responsible on behalf of the purchaser to assist the             


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1   person redeeming the property in computing the exact amount                 

                                                                                

2   required to redeem the property.  The designee may charge a fee             

                                                                                

3   as stated in the affidavit [and may be authorized by the purchaser to receive redemption funds].  The purchaser shall accept the                              

                                                                                

4   amount computed by the designee.                                            

                                                                                

5       (2) Redemption may be made by any of the following:                         

                                                                                

6       (a) The person against whom the execution is issued  ,  and                 

                                                                                

7   whose right and title are sold in pursuance  thereof; or  of the            

                                                                                

8   execution.                                                                  

                                                                                

9       (b) If  such  the person is dead, by his or her devisee of                  

                                                                                

10  the premises sold,  if the same have been devised; and if the               

                                                                                

11  same have not been devised  and if there is no devisee, by the              

                                                                                

12  executor or administrator with the approval of the judge of                 

                                                                                

13  probate,  ;  or by the person's heirs.  of such person; or                  

                                                                                

14      (c) By any grantee of  such  the person who acquires an                     

                                                                                

15  absolute title by deed, sale under mortgage, or under an                    

                                                                                

16  execution, or by any other means, to the premises sold  ,  or to            

                                                                                

17  any lot, tract, parcel, or portion which is separately sold.  ;             

                                                                                

18  or                                                                          

                                                                                

19      (d) The purchaser of the title and right of redemption of the               

                                                                                

20  person against whom the execution issues.  , or                             

                                                                                

21      (e) Any heir or devisee of  such  the person, or any grantee                

                                                                                

22  of  such  the heir or devisee, who acquires an absolute title to            

                                                                                

23  a portion of the estate sold, or to a portion of any lot, tract,            

                                                                                

24  or parcel that is separately sold, or the executor or                       

                                                                                

25  administrator of  such  the person, with the approval of the                

                                                                                

26  judge of probate.  ; and such  The person has the same remedy to            

                                                                                

27  enforce contribution from those who own the residue of the lot,             


     Senate Bill No. 929 (H-2) as amended December 9, 2004

   

1   tract, or parcel  ,  as if the sum required to be paid by him or            

                                                                                

2   her to effect redemption was collected by a sale of the portion             

                                                                                

3   belonging to  such  the grantee.  ; or                                      

                                                                                

4       (f) Each of several persons having undivided shares, as joint               

                                                                                

5   tenants or tenants in common, in the premises sold, or in any               

                                                                                

6   particular lot or tract sold, by paying to the purchaser or                 

                                                                                

7   officer a sum that bears the same proportion to the whole sum bid           

                                                                                

8   for the premises or for the particular lot or tract as the share            

                                                                                

9   proposed to be redeemed bears to the whole number of shares of              

                                                                                

10  the premises, lot, or tract, together with the interest on  such            

                                                                                

11  the sum.  ; or                                                              

                                                                                

12      (g) A defendant lessee where the unexpired term of the lease                

                                                                                

13  exceeds 3 years at the date of sale on execution.  ; and on such            

                                                                                

14  On the redemption, the defendant is entitled to repossess,                  

                                                                                

15  recover, and enjoy the premises from the execution purchaser or             

                                                                                

16  his  the purchaser's assigns.                                              

                                                                                

17      (3) Upon payment being made by any person so entitled to                    

                                                                                

18  redeem any real estate so sold, the sale of the premises so                 

                                                                                

19  redeemed and the certificate of  such  the sale and deed to the             

                                                                                

20  extent of the premises or shares so redeemed  , shall be null               

                                                                                

21  and  are void.                                                              

        [(4) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.]                                                                       

22      Sec. 6066.  (1) The sums required to be paid  by the                        

                                                                                

23  foregoing provisions  under this act, to acquire the title of the           

                                                                                

24  original purchaser  ,  or to become a purchaser from any                    

                                                                                

25  creditor, may be paid to  such  the purchaser or creditor, to his           

                                                                                

26  or her representatives or assigns, or to the officer who made the           

                                                                                

27  sale  , or to the register of deeds in whose office the                     


                                                                                

1   certificate of sale is recorded,  for the use of the purchaser or           

                                                                                

2   creditor entitled to the  same  sums paid.                                  

                                                                                

3       (2) If the purchaser of any equity of redemption, or any                    

                                                                                

4   creditor having acquired the rights of  such  the purchaser,                

                                                                                

5   shall pay the debt due on the mortgage, or the amount of any sale           

                                                                                

6   of said premises sold on execution, or any part  thereof  of the            

                                                                                

7   property, the amount  so  paid on the mortgage or execution sale            

                                                                                

8   shall be paid, with interest, to  such  the purchaser or                    

                                                                                

9   creditor, in redeeming the premises, or purchasing the rights of            

                                                                                

10  such  the purchaser or creditor, as  the case may be according             

                                                                                

11  to the provisions of  provided under this chapter.                          

                                                                                

12      (3) Upon  such  payment being made, the title of the original               

                                                                                

13  purchaser shall be  thereby  transferred to the creditor                    

                                                                                

14  acquiring  the same pursuant to  title under the foregoing                  

                                                                                

15  provisions  ,  and from  such  the creditor to any other creditor           

                                                                                

16  becoming a purchaser  thereof as hereinbefore provided  of the              

                                                                                

17  property.                                                                   

                                                                                

18      (4) If an automation fund is created under section 2568, any                

                                                                                

19  fees or charges collected by the register of deeds under this               

                                                                                

20  section or section 3140, 3240, or 6062 shall be credited to the             

                                                                                

21  automation fund.                                                            

                                                                                

22      Enacting section 1.  Sections 3272 and 6058 of the revised                  

                                                                                

23  judicature act of 1961, 1961 PA 236, MCL 600.3272 and 600.6058,             

                                                                                

24  are repealed.