MI Underwriting Summary
Contents
- 1 Search/Exam
- 2 UPL
- 3 Vesting
- 4 Witness Requirements
- 5 Property Tax
- 6 Mortgage/Transfer Tax
- 7 Spousal Joinder Requirements/Homestead
- 8 Power Of Attorney
- 9 Construction Liens
- 10 Foreclosure Review
- 11 Instrument Requirements
- 12 Who May Serve As Trustee On Deed Of Trust
- 13 Time Limitations
- 14 Odd Stuff
Search/Exam
- Minimum Search Requirements -- No Statute. Marketable Title Act – 40 years
- Search Standards
- Plant or other search restrictions -- No
- Foreclosure Checklist --
WARNING – property tax issues -
- Survey Requirements -- No
UPL
Attorney involvement is not required for title searches or issuance of policies. However, an attorney must draft “non-form” instruments if the seller is unwilling to act as drafter.
Vesting
The following tenancy types are recognized:
- Individual
- Tenancy by the entireties
- Joint tenancy
- Joint tenancy with right of survivorship
- Tenancy in common (default)
- Life estate
- Enhanced life estate (Lady Bird).
Acceptable instruments for transferring ownership on real property: Warranty Deed (either General or Special) however other forms of deeds exist, such as: Covenant Deeds, Quit Claim Deeds, Trustee’s Deeds, Personal Representative Deeds. (Limited Warranty Deeds are prohibited by statute.)
Witness Requirements
No longer required.
Property Tax
Mortgage/Transfer Tax
No Mortgage Tax. Deed transfer taxes are provided by statute and uniform across the state. The taxes are based upon the total value of the property being conveyed. The rates are:
$7.50 per thousand for State; plus $1.10 per thousand for County
Spousal Joinder Requirements/Homestead
The non-owning spouse must join in a mortgage other than a purchase money mortgage. The non-owning spouse is not required to join in a purchase money mortgage. A non-owning wife must sign on a deed to sell property to release her Dower interest, but a non-owning husband does not need to join in on a conveyance by the wife.
Power Of Attorney
Construction Liens
Foreclosure Review
Instrument Requirements
Who May Serve As Trustee On Deed Of Trust
Mortgages only. Deeds of Trust may not be recognized.
Time Limitations
- US Judgment Liens -- 20 years
- State Court Judgment Liens --
- Federal Tax Liens -- 10 years (+ 30 days)
- State Tax Liens --
- Estate Tax Lien -- 10 years
- State Inheritance Tax Liens --
- Mechanics Liens --
- Financing Statements --
- Mortgages --
- HOA Liens --
- Condominium assessments --
- Child Support Liens --
Odd Stuff
- Usury coverage through an endorsement is available. The usury statute is MCL § 438.31 et sec.
