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JJB H05171'25 t_HB6197_INTR_1 we327j
HOUSE BILL NO. 6197
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 section 25 (MCL 565.25), as amended by 2008 PA 357.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 25. (1) Except as otherwise provided in subsection (2), 1
the recording of a levy, attachment, lien, lis pendens, sheriff's 2
certificate, marshal's certificate, or other instrument of 3
encumbrance does not perfect the instrument of encumbrance unless 4
both of the following are found by a court of competent 5
July 03, 2026, Introduced by Reps. Fairbairn and Tisdel and referred to Committee on Finance.
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jurisdiction to have accompanied the instrument when it was 1
delivered to the register under section 24(1) of this chapter: 2
(a) A full and fair accounting of the facts that support 3
recording of the instrument of encumbrance and supporting 4
documentation, as available. 5
(b) Proof of service that actual notice has been given to the 6
recorded landowner of the land to which the instrument of 7
encumbrance applies. 8
(2) Subsection (1) does not apply to any of the following: 9
(a) A tax lien that is not required to be recorded pursuant to 10
under the general property tax act, 1893 PA 206, MCL 211.1 to 11
211.155. 12
(b) The filing of an instrument of encumbrance that is 13
authorized by a state statute or federal statute. 14
(c) The filing of a consensual agreement to encumber real 15
property that is entered into between the owner of real property 16
and the person who that seeks to record an encumbrance. A 17
consensual agreement includes, but is not limited to, a mortgage, 18
loan agreement, land contract, or other consensual or contractual 19
agreement of whatever description entered into between the owner of 20
real property and the person who that seeks to record an 21
encumbrance. 22
(d) The filing of an encumbrance that is authorized in a final 23
order by a court of competent jurisdiction. 24
(e) A filing of a levy, attachment, lien, lis pendens, 25
sheriff's certificate, marshal's certificate, or other instrument 26
of encumbrance by a commercial lending institution. As used in this 27
section, subdivision, "commercial lending institution" means any of 28
the following: 29
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(i) A state or nationally chartered bank. 1
(ii) A state or federally chartered savings and loan 2
association or savings bank. 3
(iii) A state or federally chartered credit union. 4
(iv) Any other state or federally chartered lending institution 5
or regulated affiliate or regulated subsidiary of any entity listed 6
in this subparagraph or subparagraphs (i) to (iii). 7
(v) An insurance company that is authorized to do business in 8
this state pursuant to under the insurance code of 1956, 1956 PA 9
218, MCL 500.100 to 500.8302. 10
(vi) A motor vehicle finance company that is subject to the 11
motor vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 12
to 492.141, with net assets in excess of $50,000,000.00. 13
(vii) A foreign bank. 14
(viii) A retirement fund regulated pursuant to under state law, 15
or a pension fund of a local unit of government or a pension fund 16
regulated pursuant to under federal law with net assets in excess 17
of $50,000,000.00. 18
(ix) A federal, state, or local agency that is authorized by 19
law to hold a security interest in real property or a local unit of 20
government holding a reversionary interest in real property. 21
(x) A nonprofit tax exempt organization that is created to 22
promote economic development in which a majority of the 23
organization's assets are held by a local unit of government. 24
(xi) An entity within the federally chartered farm credit 25
system. 26
(xii) A For 6 months after the effective date of the 27
residential mortgage licensing and supervision act, a licensee 28
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under the mortgage brokers, lenders, and servicers licensing act, 1
1987 PA 173, MCL 445.1651 to 445.1684. 2
(xiii) A holder under the home improvement finance act, 1965 PA 3
332, MCL 445.1101 to 445.1431. 4
(xiv) A retail seller under the retail installment sales act, 5
1966 PA 224, MCL 445.851 to 445.873. 6
(xv) A For 6 months after the effective date of the residential 7
mortgage licensing and supervision act, a licensee under the 8
secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, 9
pertaining to secondary mortgages. 10
(xvi) A licensee under the consumer financial services act, 11
1988 PA 161, MCL 487.2051 to 487.2072. 12
(xvii) A licensee under the regulatory loan act, 1939 PA 21, MCL 13
493.1 to 493.24. 14
(xviii) A regulated lender under the credit reform act, 1995 PA 15
162, MCL 445.1851 to 445.1864. 16
(xix) Beginning on the effective date of the residential 17
mortgage licensing and supervision act, a licensee under the 18
residential mortgage licensing and supervision act. 19
(3) A person who that is not exempt under subsection (2) who 20
that encumbers property through the recording of an instrument 21
listed under subsection (1) without lawful cause with the intent to 22
harass or intimidate any person is liable for the penalties set 23
forth in section 2907a of the revised judicature act of 1961, 1961 24
PA 236, MCL 600.2907a. 25
Enacting section 1. This amendatory act does not take effect 26
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 27
Legislature is enacted into law. 28