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Michigan’s Marketable Record Title Act and What it Means to You if You Live in a Condominium or Subdivision

by | May 31, 2021 | Firm News |

In 2018, the Michigan Legislature amended the Marketable Record Title Act (“MRTA”), MCL 565.101, et seq. Under the MRTA, a person has Under the Act, a person has marketable title to an interest in land if they have an unbroken chain of title to the interest for 40 years (20 years for mineral interests). According to the language of the MRTA itself, the legislative purpose of the MRTA is to simplify and facilitate land title transactions by allowing persons dealing with the record title owner to rely on the record title covering a period of not more than 20 years for mineral interests and 40 years for other interests unless within the 20-year period for mineral interests or the 40-year period for other interests a “notice of claim” a has been recorded in the chain of title. MCL 565.106.

Prior to the amendment, many deeds to property located within condominiums or subdivisions would simply state something to the effect that the property was “subject to easements and restrictions of record” and that was considered sufficient to keep the restrictions alive. But, that is no longer the case. Now property owners, condominium associations, and HOAs are in danger of having those restrictions expire if affirmative steps are not taken. Originally under the amendment to the MRTA, affirmative steps were to have been taken as of March 28, 2021. However, in 2021, the legislature enacted HB 5611, which amended MCL 565.103 and property owners, condominium associations, and HOAs now have until March 29, 2024 to take the required affirmative steps to preserve the restrictions.

So, what is the affirmative action that must be taken under the MRTA to preserve the restrictions? It is simply a document that is recorded in the register of deeds of the county in which the property is located. However, this simple document must contain very specific information. It is not advised that property owners, condominium associations, or HOAs attempt to draft or record the document without seeking the advice of legal counsel.

If you are a property owner or a member of a condominium association or HOA Board of Directors and your restrictions were recorded more than 40 years ago or close to 40 years ago and you have questions about this issue, the attorneys at Tilchin & Hall P.C. are here to help. Please email us below or give us a call at (248) 349-6203 to make an appointment to speak with one of our attorneys.

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