Bill Text: MI HB5366 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Property; mortgages; transfer of title on foreclosure; make subject to prior land contract if land contract certificate was recorded. Amends secs. 3130 & 3236 of 1961 PA 236 (MCL 600.3130 & 600.3236). TIE BAR WITH: HB 5365'17
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-12-28 - Bill Electronically Reproduced 12/13/2017 [HB5366 Detail]
Download: Michigan-2017-HB5366-Introduced.html
HOUSE BILL No. 5366
December 13, 2017, Introduced by Rep. Schor and referred to the Committee on Financial Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 3130 and 3236 (MCL 600.3130 and 600.3236).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3130. (1) The person making the sale under section 3125
shall execute deeds specifying the names of the parties in the
action, the date of the land contract or mortgage, when and where
it
the land contract or mortgage
was recorded, a description of the
premises sold, and the amount for which each parcel of land
described
in the deed was sold. ; and he The person making the sale
shall
also indorse upon on each deed the time it
becomes operative
if the premises are not redeemed according to law. Unless the
premises
or any parcel of them the
premises are redeemed within the
time limited for redemption, and subject to subsection (2), the
deed
shall become becomes operative as to all parcels not redeemed
,
and shall vest vests in
the grantee named in the deed, his or the
grantee's
heirs , or assigns, all the right, title, and interest
which
that the mortgagor had at the time of the execution of
the
mortgage
or at any time thereafter.after
the execution of the
mortgage.
(2) If the sale under section 3125 was on foreclosure of a
mortgage and if at the time the mortgage was entered into the
mortgagor was the vendor under a contract for the sale of the land
and the land consisted of 1 to 4 residential units, and if the land
contract or a certificate of residential land contract executed
under section 4 of 1879 PA 237, MCL 565.354, concerning the land
was recorded with the office of the register of deeds in the county
where the land is located, the successful purchaser at the sale
under section 3125 takes title subject to the terms and conditions
of the land contract and becomes the vendor under the land
contract.
(3) (2)
The deed of sale as As soon as practicable and within
20
days after the sale, shall the deed of sale executed under this
section must be deposited with the register of deeds of the county
in
which the land therein described in the deed is situated,
and
the
located. The register shall indorse upon on the
deed the time
it
was received, and shall record the deed at length in a
book to
be
provided in his the
register's office for that purpose, and
shall
index the deed in the regular index
of deeds. , and the The
fee
for recording the deed shall must
be included among the other
costs and expenses allowed by law. If the premises or any parcel of
them
the premises are redeemed, the register of deeds shall write
on
the face of the record the work word
"Redeemed", and
he shall
write
at what the date the entry is made, and sign the entry with
his or her official signature.
Sec.
3236. (1) Unless the premises described in such the deed
shall
be executed under section
3232 is redeemed within the time
limited
for such redemption as hereinafter provided in section
3240, such and subject to subsection (2), the deed shall thereupon
become
becomes operative
, and shall vest vests
in the grantee
therein
named in the deed, his or the grantee's heirs or assigns,
all
the right, title, and interest which that the mortgagor had at
the time of the execution of the mortgage, or at any time
thereafter,
after the execution of the
mortgage, except as to any
parcel
or parcels which may that have been redeemed and canceled ,
as
hereinafter provided ; and the in this chapter. After the deed
is
recorded, the record thereof shall
thereafter, is for all
purposes
be deemed a valid record of said the deed without being
re-recorded. ,
but no However, any person having any that has a
valid
subsisting lien upon on the mortgaged premises, or any part
thereof,
of the mortgaged premises, that
was created before the
lien
of such the mortgage took effect, shall be is not prejudiced
by
any such the sale
under section 3216, nor shall his are the
person's
rights or interests be in any
way affected thereby.by
the
sale.
(2) If at the time the mortgage was entered into the mortgagor
was the vendor under a contract for the sale of the land and the
land consisted of 1 to 4 residential units, and if the land
contract or a certificate of residential land contract executed
under section 4 of 1879 PA 237, MCL 565.354, concerning the land
was recorded with the office of the register of deeds in the county
where the land is located, the successful purchaser at the sale
under section 3216 takes title subject to the terms and conditions
of the land contract and becomes the vendor under the land
contract.
Enacting section 1. Sections 3130 and 3236 of the revised
judicature act of 1961, 1961 PA 236, MCL 600.3130 and 600.3236, as
amended by this amendatory act, only apply to land contracts
entered into on or after the effective date of this amendatory act.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5365 (request no.
01181'17 *) of the 99th Legislature is enacted into law.
