TitleBytes News & Happenings

MLTA Priority Legislation Introduced

Dec 8, 2017

Cami Pendell, JD
Michigan Legislative Consultants

The Legislature recently returned from its fall break and a flurry of activity is taking place before it goes on its winter recess, which is scheduled to begin on December 15th. One very important action that took place was Sen. Jones introducing SB 671 , which is MLTA’s priority legislation that will help to clarify and strengthen the Marketable Title Act.

Currently under the Act, interests such as private restrictions on the use of the property, expire if they are not created in a 40-year look-back period, or referred to in other documents recorded within that 40-year period. Unfortunately, the existing Marketable Title Act does not specifically define what kind of reference has to be in a document to continue previously created restrictions. Others, such as Ohio, Indiana and the Commission on Uniform Laws have adopted a simple fix. A document in the 40-year chain of title continues a prior restriction only if it refers to the prior restriction by the book and page where it is recorded in the register of deeds’ records. This simple fix both simplifies and provides certainty to land titles and is what is contained in SB 671.

This bill was referred to the Senate Local Government Committee and we are currently in the process of working with the chairman to get a committee hearing scheduled on the bill. Because all legislation that is introduced this year continues into next year, the association has plenty of time to work to get this bill through the legislative process.

(Editor’s Note: This may well be our hottest topic to present and discuss with Michigan legislators during the MLTA 2018 “Lobby Day” in the spring. Should be fun – join us!)

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