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.

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

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