MI Underwriting References

Conveyances

QTA

WFG does not insure from quiet title actions brought against just the property address. We would consider a quiet title action when it is brought against a specific person who owns the property. The court cannot eliminate a parties interest in the property if they are not named in the lawsuit to do so.

Homestead

FOR MORTGAGES - MORE JOINDER ISSUE

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.

Land Title Standards

Michigan Land Title Standards

Letters of Indemnity Between Title Companies, Reliance on Mutual Indemnification Agreement

Future Advance Mortgages not covered

Future Advance mortgages are not covered under the Mutual Indemnification so simply having the current owner’s policy is not enough to remove it. You would need to request a hard indemnity from the underwriter on the current owner’s policy.

Marital Property

FOR MORTGAGES: 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.

Marketable Record Title Act & Curative Acts

ELEMENTS OF MARKETABLE RECORD TITLE STANDARD: A PERSON HAS MARKETABLE RECORD TITLE TO AN INTEREST IN LAND IF: (A) THERE IS AN UNBROKEN CHAIN OF RECORD TITLE TO THAT INTEREST FOR AT LEAST 40 YEARS (AT LEAST 20 YEARS FOR MINERAL INTERESTS AS DEFINED IN MCL 565.101a); AND (B) THERE IS NO ONE IN HOSTILE POSSESSION OF THE LAND. Authorities: MCL 565.101, 565.101a and 565.103. Cook v Grand River Hydroelectric Power Co, 131 Mich App 821, 346 NW2d 881 (1984); Rush v Sterner, 143 Mich App 672, 373 NW2d 183 (1985); Strong v Detroit & Mackinac Ry Co, 167 Mich App 562, 423 NW2d 266 (1988). Comment: The required period of an unbroken chain of record title is 20 years with respect to a mineral interest, which is defined in MCL 565.101a as an interest in minerals (other than an interest in oil, gas, sand, gravel, limestone, clay, or marl) owned by a person other than the surface owner.

Mortgages & Deeds of Trust

JOINDER OF SPOUSE 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.

Notary & Acknowledgments

Prohibitions

• A Notary cannot certify or notarize that a record is an original or a true copy of another record. • A Notary cannot notarize his or her own signature or take their own deposition. (The safest course of action is to never have a notary act as a signing witness and notarize the same document because a notary cannot notarize their own signature. A notary may witness the signing of the document and notarize the same document as long as the notary public is not notarizing their own signature. This means that if the witness’s signatures are required to be notarized, the notary public will only be able to notarize the record owner’s signature and the other witness. Best practice in this type of case is to have two witnesses e.g. friends, co-workers, neighbors, etc. witness the document and only have a notary complete the document notarization. Another option is to enlist another notary to notarize the notaries (witness) signature as a notary public cannot notarize their own signature.)

Plats And Streets

Private Road Notice Required - Sale Voidable

560.261 Sale of land; written disclosures to buyer; voidability of sale.

Sec. 261. No person shall sell any lot in a recorded plat or any parcel of unplatted land in an unincorporated area if it abuts a street or road which has not been accepted as public unless the seller first informs the purchaser in writing on a separate instrument to be attached to the instrument conveying any interest in such lot or parcel of land of the fact that the street or road is private and is not required to be maintained by the board of county road commissioners. In addition, any contract or agreement of sale entered into in violation of this section shall be voidable at the option of the purchaser. History: 1967, Act 288, Eff. Jan. 1, 1968. Popular name: Plat Act Popular name: Subdivision Control Rendered

Probate & Estates

TITLE DERIVED THROUGH INTESTATE DECEDENT

STANDARD 7.1:

THE TITLE TO REAL PROPERTY OF AN INTESTATE DECEDENT’S TITLE IS VESTED AS OF THE TIME OF DEATH IN THE HEIRS AT LAW, SUBJECT TO:

(A) THE RIGHTS TO HOMESTEAD, EXEMPT PROPERTY AND FAMILY ALLOWANCES;

(B) THE WIDOW’S RIGHT TO ELECT DOWER;

(C) THE RIGHT AND DUTY OF THE PERSONAL REPRESENTATIVE TO POSSESS THE REAL PROPERTY AND TO RECEIVE THE INCOME FROM THE REAL PROPERTY;

(D) THE POSSIBILITY OF SALE FOR ANY PURPOSE PERMITTED BY THE ESTATES AND PROTECTED INDIVIDUALS CODE (EPIC);

(E) THE LIEN OF ANY FEDERAL OR MICHIGAN ESTATE TAX; AND

(F) ANY FEDERAL OR STATE TAX THAT IS REQUIRED TO BE PAID BEFORE THE ESTATE CAN BE CLOSED.

TITLE DERIVED THROUGH TESTATE DECEDENT

STANDARD 7.2: THE WILL OF A TESTATE DECEDENT, WHEN PROBATED, conveys the DECEDENT’S TITLE TO REAL PROPERTY AS OF THE TIME OF DEATH SUBJECT TO:

(A) THE RIGHT OF THE SURVIVING SPOUSE TO ELECT A STATUTORY SHARE;

(B) THE RIGHT TO HOMESTEAD, EXEMPT PROPERTY AND FAMILY ALLOWANCE;

(C) THE WIDOW’S RIGHT TO ELECT DOWER;

(D) THE RIGHT AND DUTY OF THE PERSONAL REPRESENTATIVE TO POSSESS THE REAL PROPERTY ANDTO RECEIVE THE INCOME FROM IT;

(E) THE POSSIBILITY OF SALE FOR ANY PURPOSE PERMITTED BY THE ESTATES AND PROTECTED INDIVIDUALS CODE (EPIC);

(F) THE LIEN OF ANY FEDERAL OR MICHIGAN ESTATE TAX; AND

(G) ANY FEDERAL OR STATE TAX THAT IS REQUIRED TOBE PAID BEFORE THE ESTATE CAN BE CLOSED.

DISTRIBUTION OF ESTATE REAL PROPERTY BY COURT ORDER

(NOTE: probate proceedings can be either independent or supervised.)

STANDARD 7.3: A COURT ORDER OF DISTRIBUTION of ESTATE REAL PROPERTY DETERMINES:

(A) THE PERSONS ENTITLED TO THE ESTATE AND THEIR PROPORTIONATE SHAREs of the estate, WHETHER BY THE LAW OF DESCENT, THE WILL, OR AN AGREEMENT; AND

(B) THAT THE ESTATE HAS BEEN FULLY ADMINISTERED SO THAT THE ESTATE REAL PROPERTY, TITLE TO WHICH VESTED AT THE DECEDENT’S DEATH IN HEIRS AT LAW OR THE DEVISEES, IS FREE OF THE DEBTS AND CHARGES TO WHICH IT WAS SUBJECT.

INSIGNIFICANT IRREGULARITIES IN SUPERVISED PROBATE SALE - NON JURISDICTIONAL

(NOTE: NOTICE IS KEY IN PROBATE PROCEEDING RELATED TO SALE - NOTICE IS THE JURISDICTIONAL ISSUE BUT SEE COMMENTS IN MI STARDARD)

STANDARD 7.4: NOTWITHSTANDING A NON-JURISDICTIONAL IRREGULARITY IN SUPERVISED PROBATE SALES PROCEEDINGS BEFORE APRIL 1, 2000, A CONVEYANCE OF AN INTEREST IN REAL PROPERTY BY A FIDUCIARY MAY NOT BE AVOIDED if:

(A) THE SALE WAS AUTHORIZED BY LAW; (B) ANY REQUIRED BOND WAS GIVEN AND APPROVED; (C) THE PRESCRIBED NOTICE OF THE SALE WAS GIVEN; (D) THE SALE WAS CONFIRMED; AND (E) THE REAL PROPERTY IS HELD BY ONE WHO PURCHASED IN GOOD FAITH.

DEED UNDER POWER OF SALE GRANTED TO TWO OR MORE PERSONAL REPRESENTATIVES

STANDARD 7.5: ALL QUALIFIED AND SURVIVING PERSONAL REPRESENTATIVES MUST EXECUTE A DEED PURSUANT TO A TESTAMENTARY POWER OF SALE UNLESS THE WILL AUTHORIZES LESS THAN ALL OF THEM TO CONVEY.

POWERS OF SUCCESSOR OR SURVIVING PERSONAL REPRESENTATIVES

STANDARD 7.6: A successor personal representative has the same powers and duties as the original personal representative to complete the administration and distribution of the estate, but the successor personal representative of a testate estate may not exercise a power expressly made personal to the personal representative named in the will.

Unless the will provides otherwise:

(A) each power exercisable by SURVIVING personal CO-representative(s) may be exercised by the remaining personal COrepresentative(s) after the appointment of one or more is terminated; AND (B) if ANY person nominated as personal CO-representative(S) is not appointed, thE REMAINING appointed PERSONAL COREPRESENTATIVE(S) may exercise all the powers incident to the office.

CONVEYANCE OF MICHIGAN REAL PROPERTY BY FOREIGN FIDUCIARY NOT QUALIFIED IN MICHIGAN=

(NOTE: NEED ANCILLIARY PROCEEDINGS)

Standard 7.12: A fiduciary appointed by a court in a foreign jurisdiction during the administration of an estate cannot convey marketable title to Michigan real property unless qualified as a fiduciary in Michigan.

====TESTAMENTARY POWER TO SELL DOES NOT INCLUDE POWER TO MORTGAGE IN SUPERVISED PROBATE PROCEEDINGS COMMENCED BEFORE APRIL 1, 2000

STANDARD: A TESTAMENTARY POWER TO SELL REAL PROPERTY DOES NOT INCLUDE THE POWER TO MORTGAGE REAL PROPERTY IN SUPERVISED PROBATE PROCEEDINGS COMMENCED BEFORE APRIL 1, 2000.

CONVEYANCE OF REAL PROPERTY BY INDEPENDENT PERSONAL REPRESENTATIVE AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000

STANDARD: AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000, an independent personal representative may convey MARKETABLE TITLE TO real property to A GOOD FAITH PURCHASER FOR VALUE, if the LETTERS OF AUTHORITY do not restrict the power of the independent personal REPRESENTATIVE to make the conveyance.

====CONVEYANCE OF REAL PROPERTY BY PERSONAL REPRESENTATIVE APPOINTED in INFORMAL APPOINTMENT PROCEEDINGS AFTER MARCH 31, 2000====

STANDARD 7.16-2: AFTER MARCH 31, 2000, A personal representative acting in AN informal appointment proceeding may convey marketable title to real property TO A GOOD FAITH PURCHASER FOR VALUE, if LETTERS OF APPOINTMENT are IN EFFECT WHEN THE conveyance is MADE AND THE PURCHASER has NO ACTUAL KNOWLEDGE OF ANY RESTRICTION AGAINST THE Conveyance.

====TESTAMENTARY POWER TO SELL DOES NOT INCLUDE POWER TO MORTGAGE IN SUPERVISED PROBATE PROCEEDINGS COMMENCED BEFORE APRIL 1, 2000====

STANDARD 7.7: A TESTAMENTARY POWER TO SELL REAL PROPERTY DOES NOT INCLUDE THE POWER TO MORTGAGE REAL PROPERTY IN SUPERVISED PROBATE PROCEEDINGS COMMENCED BEFORE APRIL 1, 2000.

MORTGAGE OF REAL PROPERTY BY INDEPENDENT PERSONAL REPRESENTATIVE AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000

STANDARD 7.17: AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000, an independent personal REPRESENTATIVE may give a valid mortgage of real property to a good faith mortgagee for value, unless the letters of authority restrict the power to mortgage or the mortgagee has actual knowledge of limitations contained in a court order or the will,

====MORTGAGE OF REAL PROPERTY BY PERSONAL REPRESENTATIVE APPOINTED IN FORMAL OR INFORMAL APPOINTMENT PROCEEDINGS AFTER MARCH 31, 2000====

STANDARD 7.18: After march 31, 2000, a personal representative acting in formal or informal appointment proceedings may give a valid mortgage of real property to a good faith mortgagee for value, unless the letters of appointment restrict the power to mortgage or the mortgagee has actual knowledge of limitations contained in a court order or the will, if any.

====CONVEYANCE OF MICHIGAN REAL PROPERTY BY FOREIGN FIDUCIARY QUALIFIED AS PERSONAL REPRESENTATIVE OF INTESTATE ESTATE IN MICHIGAN AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000====

STANDARD: AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000, A FOREIGN FIDUCIARY APPOINTED ADMINISTRATOR OF AN INTESTATE ESTATE IN ANOTHER STATE MAY, more than 30 DAYS AFTER THE DEATH OF THE DECEDENT, QUALIFY AS A PERSONAL REPRESENTATIVE IN MICHIGAN, PROVIDED NO LOCAL ADMINISTRATION OR PETITION FOR LOCAL ADMINISTRATION IS PENDING IN MICHIGAN, AND may IN THAT CAPACITY CONVEY MARKETABLE TITLE TO MICHIGAN REAL PROPERTY.

====CONVEYANCE OF MICHIGAN REAL PROPERTY BY DOMICILIARY FOREIGN PERSONAL REPRESENTATIVE qualified AS PERSONAL REPRESENTATIVE OF INTESTATE ESTATE IN MICHIGAN AFTER MARCH 31, 2000====

Standard 7.13-2:

AFTER MARCH 31, 2000, A DOMICILIARY FOREIGN PERSONAL REPRESENTATIVE APPOINTED ADMINISTRA­TOR OF AN INTESTATE ESTATE IN ANOTHER STATE MAY qualify as a personal representative in Michigan, IF no local ADMINISTRATION or petition for local administration is pending in michigan, AND may IN THAT CAPACITY CONVEY MARKETABLE TITLE TO MICHIGAN REAL PROPERTY.

====CONVEYANCE OF MICHIGAN REAL PROPERTY BY FOREIGN FIDUCIARY QUALIFIED AS PERSONAL REPRESENTATIVE OF TESTATE ESTATE IN MICHIGAN AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000====

Standard 7.14-1:

AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000, A FOREIGN FIDUCIARY APPOINTED PURSUANT TO A WILL ADMITTED TO PROBATE IN ANOTHER STATE MAY, more than 30 days after the death of the decedent, QUALIFY AS A PERSONAL REPRESENTATIVE IN MICHIGAN AND may IN THAT CAPACITY CONVEY MARKETABLE TITLE TO MICHIGAN REAL PROPERTY.

====CONVEYANCE OF MICHIGAN REAL PROPERTY BY DOMICILIARY FOREIGN PERSONAL REPRESENTATIVE QUALIFIED AS PERSONAL REPRESENTATIVE OF TESTATE ESTATE IN MICHIGAN AFTER MARCH 31, 2000====

STANDARD 7.14: AFTER MARCH 31, 2000, A DOMICILIARY FOREIGN PERSONAL REPRESENTATIVE APPOINTED PURSUANT TO A WILL ADMITTED TO PROBATE IN ANOTHER STATE MAY QUALIFY AS A PERSONAL REPRESENTATIVE IN MICHIGAN, IF no local administration or petition for local administration is pending in michigan, AND may IN THAT CAPACITY CONVEY MARKETABLE TITLE TO MICHIGAN REAL PROPERTY.

PURCHASE OF ESTATE PROPERTY BY FIDUCIARY

PURCHASE OF ESTATE REAL PROPERTY BY FIDUCIARY AFTER MARCH 31, 2000

STANDARD 7.11-2: THE TITLE ACQUIRED BY A FIDUCIARY PURCHASING ESTATE REAL PROPERTY IN AN INDIVIDUAL CAPACITY, DIRECTLY OR INDIRECTLY, AFTER MARCH 31, 2000 IS NOT MARKETABLE UNLESS:

(A) THE SALE IS MADE WITH EXPRESS COURT AUTHORITY AND AFTER NOTICE TO ALL INTERESTED PARTIES AND A HEARING; (B) THE WILL OR A CONTRACT ENTERED INTO BY the DECEDENT EXPRESSLY AUTHORIZED THE TRANSACTION; OR (C) ALL INTERESTED PARTIES CONSENT to the sale AFTER FAIR DISCLOSURE.

PURCHASE OF ESTATE REAL PROPERTY BY FIDUCIARY BEFORE JULY 1, 1979

STANDARD 7.10: THE TITLE ACQUIRED BY A FIDUCIARY PURCHASING ESTATE REAL PROPERTY IN AN INDIVIDUAL CAPACITY, DIRECTLY OR INDIRECTLY, BEFORE JULY 1, 1979 IS NOT MARKETABLE.

PURCHASE OF ESTATE REAL PROPERTY BY FIDUCIARY AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000

STANDARD 7.11-1: THE TITLE ACQUIRED BY A FIDUCIARY PURCHASING ESTATE REAL PROPERTY IN AN INDIVIDUAL CAPACITY, DIRECTLY OR INDIRECTLY, AFTER JUNE 30, 1979 AND BEFORE APRIL 1, 2000, IS NOT MARKETABLE UNLESS THE SALE WAS MADE WITH EXPRESS COURT AUTHORITY AND AFTER NOTICE TO ALL INTERESTED PARTIES AND A HEARING. IN INDEPENDENT PROBATE PROCEEDINGS FOR A DECEDENT’S ESTATE, TITLE is ALSO MARKETABLE IF THE WILL OR A CONTRACT ENTERED INTO BY the DECEDENT EXPRESSLY AUTHORIZED THE TRANSACTION OR ALL INTERESTED PARTIES CONSENTED AFTER FAIR DISCLOSURE.

LIMITATION ON EXERCISE OF TESTAMENTARY POWER OF SALE

STANDARD 7.8: A TESTAMENTARY POWER OF SALE, GIVEN FOR A SPECIFIC PURPOSE, MAY BE EXERCISED ONLY FOR THAT PURPOSE.

DOWER AS AFFECTING PROBATE SALES

STANDARD 7.9: TITLE TO REAL property OF A MARRIED MALE DECEDENT DOMICILED IN MICHIGAN AT THE TIME OF HIS DEATH IS SUBJECT TO THE DOWER INTEREST OF HIS WIDOW, UNLESS:

(A) DOWER HAS BEEN BARRED; (B) THE WIDOW HAS ELECTED NOT TO TAKE DOWER; OR (C) THE WIDOW HAS FAILED TO MAKE A TIMELY ELECTION AFTER PROPER NOTICE.

QTA

WFG does not insure from quiet title actions brought against just the property address. We would consider a quiet title action when it is brought against a specific person who owns the property. The court cannot eliminate a parties interest in the property if they are not named in the lawsuit to do so.

Restrictions And Reverters

Inapplicability of 30 year statutory terminable to church/public/education/charities

554.64 Exemptions to act. Sec. 4. This act does not apply: (a) To a lease for a term of years. (b) If the specified contingency must occur, if at all, within the period of the rule against perpetuities. (c) If the terminable interest is held for public, educational, religious or charitable purposes. (d) If the terminable interest is created in a conveyance from the United States of America, the state or any agency or political subdivision of either of them.

Example

WFG would not be willing to remove it based on those sections of the statutes. I pulled them up and there are things not covered by this act and one is where the terminable event is held for religious purposes. I have attached it for you if you need it for the attorney. Please see MCL 554.64 (c). I agree that it is weird that he wants it removed when there is a church on it now. Unless he has a potential purchaser who won’t be using it for a church.

Have a great day!

Thank you, From: Laurie Nelson [1] Sent: Wednesday, February 10, 2021 3:03 PM To: Kim OConnor <koconnor@wfgnationaltitle.com> Subject: restrictions for church purposes re: Cedar Grove Church

External Sender. Hello Kim,

We are being asked to check with our underwriter regarding a deed recorded in 1952 that imposes restrictions that the property to be used for church purposes, or otherwise reverts to 1st parties.

The attorney for the customer is asking if the restriction could be considered no longer in effect due to MCL554.62, MCL554.63 and MCL554.61. He believes that after 30 years it is a terminable interest or a condition that is not enforceable and wants to know if we can insure over it based on this.

Spousal Interests

Joinder Requirements

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.

Trusts And Trustees

Certificate of Trust

UNDERWRITING BULLETIN MI 2019-01

A trustee may now furnish a certificate of trust under MCL 700.7913 (as amended by HB-5362), in affidavit form, required to contain the following:  The name of the trust, the date of the trust, and the date of each operative trust instrument.  The name and address of each current trustee.  The powers of the trustee relating to the purposes for which the certificate of trust is offered.  The revocability or irrevocability of the trust and the identity of any person holding the power to revoke the trust.  The authority of co-trustees to sign on behalf of the trust or otherwise authenticate on behalf of the trust and whether all or less than all co-trustees are required to exercise the trustee powers.  A statement that the trust has not been revoked, modified or amended in any manner that would cause the representations included in the certificate of trust to be incorrect. While not required by the statute, it is recommended as a best practice that the certificate of trust include the legal description of the affected real property. One other significant change is that the certificate of trust may now be signed or otherwise authenticated by the settlor, ANY TRUSTEE (including a successor trustee), or an attorney for the settlor or the trustee.

Recording the Cert

There is the need to place a copy of the Trust or the Trust Cert of record in instances of any deed conveyance or mortgage, but we can also consider anything already appearing in the chain of title;

Here’s the hard and fast on that:

If there is a Cert of Trust appearing in the chain of title that complies with the recent Trust requirements I provided you, and the Trustee has not changed, we would simply accept a general affidavit from the Trustee that nothing has changed;

If there is a Cert of Trust appearing in the chain of title that does not comply with the requirements, or the Trustee has changed, we would require a new one meeting said requirements.

Zoning

Michigan Land Title Standards