SB-0927, As Passed House, December 10, 2008

SUBSTITUTE FOR

SENATE BILL NO. 927

      A bill to amend 1846 RS 65, entitled

"Of alienation by deed, and the proof and recording of

conveyances, and the canceling of mortgages,"

by amending sections 24 and 25 (MCL 565.24 and 565.25), section

25 as amended by 1996 PA 526, and by adding section 24a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 24. Every register of deeds shall keep an entry book of

 2  deeds and an entry book of mortgages, each page of which shall be

 3  divided into 6 columns, with title or heads to the respective

 4  columns, in the following form, to-wit:

1  Date of Grantors Grantees  Township where               To whom delivered   Fee

2  Reception                      the land lies                (after being recorded)       (Fees)

3                                                 and date (of delivery).      Received.

4 

5 

6 

7 

8  Town. Range. Section.

 9        He shall also keep a reception book of levies.

10        Where it is found desirable to consolidate reception book entries into 1 book, it may

11  be done by providing a sheet divided into 9 vertical columns with title or heading to the

12  respective columns in the following form:

1 RECEIPT      DATE OF     GRANTORS    GRANTEES    LOCATION  KIND OF   TO WHOM  DATE         FEES

2 NUMBER       RECEIPT     OR          OR          OF LAND   INSTRU-   DELIVERED  MAILED       RECEIVED

3 MONTH, DAY, MORTGAGORS  MORTGAGEES  TOWN,     MENT.    

4 HOUR.       OR          OR          RANGE,   

5 DEFENDANTS  PLAINTIFFS  SECTION. 

6

7

8 THIS         THIS

9 COLUMN       COLUMN

10             WOULD       WOULD

11             CONTAIN     CONTAIN

12             CONSECU-    ALL

13             TIVE        STATUTORY

14             ENTRY       FEES

15             NUMBERS.    CHARGED

 1        (1) Upon delivery of an instrument to the register of deeds

 2  for the purpose of recording, the register shall note the date,

 3  hour, and minute of delivery on the first page of the instrument

 4  using a stamp or other method signifying that the date, hour, and

 5  minute was affixed by the register or a duly authorized

 6  representative of the register. If the instrument is received in

 7  bulk with other instruments, the date, hour, and minute of

 8  delivery shall be affixed in the manner required by this section

 9  as soon as is practical after its delivery. The date, hour, and

10  minute so noted shall be presumed to be the date and time of

11  delivery.

12        (2) Each instrument delivered to a register shall be

13  accessible for public review. Accessibility shall be satisfied by

14  providing the instrument inscribed in a tangible medium when

15  requested. The requirement of this subsection shall be considered

16  to be satisfied if the length of time between a request to locate

17  a particular document or documents and the time the search is

18  initiated and completed is reasonable in light of the volume of

19  all instruments being recorded and the ability to access the

20  requested documents without undue disruption to the office of the

21  register. A register of deeds also may, but is not required to,

22  do any of the following:

23        (a) Provide at least the first page of the instrument,

24  stored in an electronic or other medium.

25        (b) Provide a temporary searchable journal containing at

26  least the date of delivery, title of the instrument, and the

27  names of the parties to the instrument.

 1        (3) Any information created or maintained under subsection

 2  (2) may be destroyed when the instrument is entered into the

 3  index described in section 28 of this chapter or when the

 4  instrument is not accepted for recording.

 5        (4) A register shall not charge a fee for any review or

 6  search under subsection (2) unless it involves the search of an

 7  original instrument. An original instrument is available for

 8  public review only in the presence of the register, deputy

 9  register, or a representative of the register appointed for that

10  purpose. When a name search is performed by the register or a

11  representative of the register, a reasonable fee, not to exceed

12  $15.00 for each 15 minutes or fraction thereof, may be charged

13  for any search or review requested.

14        (5) Subsections (2) to (4) do not apply once the instrument

15  is indexed as required in section 28 of this chapter.

16        (6) The register of deeds shall post in a conspicuous place

17  in the register's office the general index date and shall

18  maintain a record that memorializes both the calendar date and

19  general index date that was posted on that calendar date. This

20  public record shall be maintained in any reasonable medium that

21  the register of deeds may select in his or her sole discretion.

22  As used in this subsection, "general index date" means that date

23  through which all recorded instruments bearing a delivery date up

24  to and including the general index date have been fully recorded

25  at length and indexed and are available for public inspection.

26        (7) If a county register of deeds or an officer, employee,

27  or agent of a register of deeds is, or believes he or she is,

 1  acting within the scope of his or her authority and in the course

 2  of his or her employment when authorizing, conducting, or

 3  deciding when or whether to conduct a search under subsection

 4  (2), that action is within the exercise or discharge of his or

 5  her governmental function, and the register of deeds or the

 6  officer, employee, or agent is immune from any claim for

 7  liability, including tort liability, that might otherwise entitle

 8  any person or other entity or corporation to monetary damages.

 9  The civil immunity provided under this section is in addition to

10  any civil immunity provided under law, including, but not limited

11  to, the application of section 7 of 1964 PA 170, MCL 691.1407.

12        Sec. 24a. (1) The register's assignment of a liber and page

13  or other unique identifying number is prima facie evidence that

14  the instrument has satisfied all recording requirements,

15  including the payment of fees, and has been accepted for

16  recording.

17        (2) An instrument is deemed to be recorded at the date and

18  time of delivery to the register if the instrument is later

19  determined to have satisfied all recording requirements,

20  including the payment of fees.

21        (3) When an instrument that was rejected on a prior occasion

22  is delivered, a new delivery date and time shall be noted on the

23  face of the instrument as required by section 24 of this chapter,

24  and the later date and time shall be rebuttably presumed to be

25  the date and time of delivery.

26        Sec. 25. (1) In the entry book of deeds, the register shall

27  enter all deeds of conveyance absolute in their terms, and not

 1  intended as mortgages or securities, and all copies left as

 2  cautions. In the entry book of mortgages the register shall enter

 3  all mortgages and other deeds intended as securities, and all

 4  assignments of any mortgages or securities. In the entry book of

 5  levies the register shall enter all levies, attachments, liens,

 6  notices of lis pendens, sheriffs' certificates of sale, United

 7  States marshals' certificates of sale, other instruments of

 8  encumbrances, and documentation required under subsection (2),

 9  noting in the books, the day, hour, and minute of receipt, and

10  other particulars, in the appropriate columns in the order in

11  which the instruments are respectively received.

12  (1) (2) Except as otherwise provided in subsection (3) (2),

13  the recording of a levy, attachment, lien, lis pendens, sheriff's

14  certificate, marshal's certificate, or other instrument of

15  encumbrance does not perfect the instrument of encumbrance unless

16  both of the following are found by a court of competent

17  jurisdiction to have accompanied the instrument when it was

18  presented delivered to the register for entry under section 24(1)

19  of this chapter:

20        (a) A full and fair accounting of the facts that support

21  recording of the instrument of encumbrance and supporting

22  documentation, as available.

23        (b) Proof of service that actual notice has been given to

24  the recorded landowner of the land to which the instrument of

25  encumbrance applies.

26  (2) (3) Subsection (2) (1) does not apply to any of the

27  following:

 1        (a) A tax lien that is not required to be recorded pursuant

 2  to the general property tax act, Act No. 206 of the Public Acts

 3  of 1893, being sections 211.1 to 211.157 of the Michigan Compiled

 4  Laws 1893 PA 206, MCL 211.1 to 211.155.

 5        (b) The filing of an instrument of encumbrance authorized by

 6  state statute or federal statute.

 7        (c) The filing of a consensual agreement to encumber real

 8  property entered into between the owner of real property and the

 9  person who seeks to record an encumbrance. A consensual agreement

10  includes but is not limited to a mortgage, loan agreement, land

11  contract, or other consensual or contractual agreement of

12  whatever description entered into between the owner of real

13  property and the person who seeks to record an encumbrance.

14        (d) The filing of an encumbrance authorized in a final order

15  by a court of competent jurisdiction.

16        (e) A filing of a levy, attachment, lien, lis pendens,

17  sheriff's certificate, marshal's certificate, or other instrument

18  of encumbrance by a commercial lending institution. As used in

19  this section, "commercial lending institution" means any of the

20  following:

21        (i) A state or nationally chartered bank.

22        (ii) A state or federally chartered savings and loan

23  association or savings bank.

24        (iii) A state or federally chartered credit union.

25        (iv) Any other state or federally chartered lending

26  institution or regulated affiliate or regulated subsidiary of any

27  entity listed in this subparagraph or subparagraphs (i) to (iii).

 1        (v) An insurance company authorized to do business in this

 2  state pursuant to the insurance code of 1956, Act No. 218 of the

 3  Public Acts of 1956, being sections 500.100 to 500.8302 of the

 4  Michigan Compiled Laws 1956 PA 218, MCL 500.100 to 500.8302.

 5        (vi) A motor vehicle finance company subject to the motor

 6  vehicle sales finance act, Act No. 27 of the Public Acts of the

 7  Extra Session of 1950, being sections 492.101 to 492.141 of the

 8  Michigan Compiled Laws 1950 (Ex Sess) PA 27, MCL 492.101 to

 9  492.141, with net assets in excess of $50,000,000.00.

10        (vii) A foreign bank.

11        (viii) A retirement fund regulated pursuant to state law, or a

12  pension fund of a local unit of government or a pension fund

13  regulated pursuant to federal law with net assets in excess of

14  $50,000,000.00.

15        (ix) A federal, state, or local agency authorized by law to

16  hold a security interest in real property or a local unit of

17  government holding a reversionary interest in real property.

18        (x) A nonprofit tax exempt organization created to promote

19  economic development in which a majority of the organization's

20  assets are held by a local unit of government.

21        (xi) An entity within the federally chartered farm credit

22  system.

23        (xii) A licensee under the mortgage brokers, lenders, and

24  servicers licensing act, Act No. 173 of the Public Acts of 1987,

25  being sections 445.1651 to 445.1684 of the Michigan Compiled Laws

26  1987 PA 173, MCL 445.1651 to 445.1684.

27        (xiii) A holder under the home improvement finance act, Act

 1  No. 332 of the Public Acts of 1965, being sections 445.1101 to

 2  445.1431 of the Michigan Compiled Laws 1965 PA 332, MCL 445.1101

 3  to 445.1431.

 4        (xiv) A retail seller under the retail installment sales act,

 5  Act No. 224 of the Public Acts of 1966, being sections 445.851 to

 6  445.873 of the Michigan Compiled Laws 1966 PA 224, MCL 445.851 to

 7  445.873.

 8        (xv) A licensee under Act No. 125 of the Public Acts of 1981,

 9  being sections 493.51 to 493.81 of the Michigan Compiled Laws the

10  secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81,

11  pertaining to secondary mortgages.

12        (xvi) A licensee under the consumer financial services act,

13  Act No. 161 of the Public Acts of 1988, being sections 487.2051

14  to 487.2072 of the Michigan Compiled Laws 1988 PA 161, MCL

15  487.2051 to 487.2072.

16        (xvii) A licensee under the regulatory loan act, of 1963, Act

17  No. 21 of the Public Acts of 1939, being sections 493.1 to 493.26

18  of the Michigan Compiled Laws 1939 PA 21, MCL 493.1 to 493.24.

19        (xviii) A regulated lender under the credit reform act, Act

20  No. 162 of the Public Acts of 1995, being sections 445.1851 to

21  445.1864 of the Michigan Compiled Laws 1995 PA 162, MCL 445.1851

22  to 445.1864.

23        (4) The instrument shall be considered as recorded at the

24  time so noted and shall be notice to all persons except the

25  recorded landowner subject to subsection (2), of the liens,

26  rights, and interests acquired by or involved in the proceedings.

27  All subsequent owners or encumbrances shall take subject to the

 1  perfected liens, rights, or interests.

 2  (3) (5) A person who is not exempt under subsection (3) (2)

 3  who encumbers property through the recording of a document an

 4  instrument listed under subsection (2) (1) without lawful cause

 5  with the intent to harass or intimidate any person is liable for

 6  the penalties set forth in section 2907a of the revised

 7  judicature act of 1961, Act No. 236 of the Public Acts of 1961,

 8  being section 600.2907a of the Michigan Compiled Laws 1961 PA

 9  236, MCL 600.2907a.

10        Enacting section 1. This amendatory act does not take effect

11  unless Senate Bill No. 1160 of the 94th Legislature is enacted

12  into law.