Bill Text: MI SB0366 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Records; public; solicitation of a fee for providing a copy of a deed; regulate. Creates new act.
Spectrum: Bipartisan Bill
Status: (Passed) 2016-04-13 - Assigned Pa 0079'16 With Immediate Effect [SB0366 Detail]
Download: Michigan-2015-SB0366-Engrossed.html
SB-0366, As Passed Senate, October 1, 2015
SUBSTITUTE FOR
SENATE BILL NO. 366
A bill to regulate the solicitation of certain deeds; to
prescribe the powers and duties of certain state agencies and
officials; and to provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"solicitation of deeds act".
Sec. 2. As used in this act:
(a) "Deed" means a written instrument entitled to be recorded
in the office of the register of deeds that purports to convey or
transfer title to a freehold interest in any lands, tenements, or
other realty in this state by way of grant or bargain and sale from
the named grantor to the named grantee. A leasehold interest for 99
years or more or a proprietary lease of a cooperative unit and any
assignment of a proprietary lease of a cooperative unit shall be
treated as a "freehold". Deed does not include instruments
providing for any of the following:
(i) Common driveways.
(ii) Exchanges of easements or rights-of-way.
(iii) Revocable licenses to use, adjust, or clear defects of
or clouds on title.
(iv) Utility service lines such as drainage, sewerage, water,
electric, telephone, or other such service lines.
(v) Quitclaim of possible outstanding interests.
(b) "Department" means the department of attorney general.
(c) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(d) "Public body" means that term as it is defined in section
2 of the freedom of information act, 1976 PA 442, MCL 15.232.
(e) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(f) "Solicit" means to advertise or market to a person with
whom the solicitor has no preexisting business relationship.
Sec. 3. (1) A person soliciting a fee for providing a copy of
a deed shall state on the top of the document used for the
solicitation, in at least 24-point type, all of the following:
(a) That the solicitation is not from a public body.
(b) That no action is legally required by the person being
solicited.
(c) The statutory fee for, or the cost of, obtaining a copy of
the deed from the public body that has custody of the record.
(d) The information necessary to contact the public body that
has custody of the deed.
(e) The name and physical address of the person soliciting the
fee.
(2) The document used for a solicitation under this section
shall not be in a form or use deadline dates or other language that
makes the document appear to be a document issued by a public body
or that appears to impose a legal duty on the person being
solicited. The department may promulgate rules specifying the
contents and form of the solicitation document.
(3) A person soliciting a fee for providing a copy of a deed
shall not charge a fee of more than 4 times the statutory fee
charged by the public body that has custody of the deed for a copy
of that deed.
(4) A person soliciting a fee from property owners for
providing a copy of a deed shall furnish the office of the register
of deeds of each county where the solicitations are to be
distributed with a copy of the document that will be used for those
solicitations not less than 15 days before distributing the
solicitations.
Sec. 4. This act does not apply to any of the following:
(a) A title insurance company authorized to do business in
this state or its authorized agent.
(b) A licensed mortgage loan originator, mortgage broker,
lender, or servicer, or a depository financial institution
authorized under state and federal law to originate or service
mortgage loans.
(c) A real estate broker or salesperson licensed under article
25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518.
Sec. 5. The department may investigate violations of this act.
The department may bring an action or request a county prosecutor
to bring an action against any person that violates this act. The
court may order a person that violates this act to refund all of
the money paid to the violator with respect to the solicitation and
to forfeit, for a first violation, not more than $100.00 for each
solicitation document distributed in violation of this act, and not
more than $200.00 for each solicitation document distributed in
violation of this act subsequent to the first violation.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.
