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Aug 2010
01
August 01, 2010

Electronic Recording – Zap It To Me

On July 1, 2010, the Senate passed House Substitute H-1 for Senate Bill 791, which creates the Uniform Real Property Electronic Recording Act (the "Act"). The Act enables county registers to accept electronic documents for recording. The Act also gives electronic signatures the same legal effect as original signatures. In addition, documents requiring a notary's signature will be valid if the notary's electronic signature is attached. No electronic seal will be required.

Effective January 1, 2011, the Act creates the Electronic Recording Commission (the "ERC") to adopt standards for the electronic recording of documents. The Act does not invalidate documents electronically recorded prior to the adoption of standards by the ERC pursuant to the Act or another law permitting the electronic recording of documents.

The Act does not require county registers to accept electronic documents. However, it does require county registers who choose to accept electronic documents to comply with standards adopted by the ERC and to continue to accept paper documents. The county register must place entries for electronic and paper documents in the same index.

Practice Tips:

  • Once standards are established by the ERC, make sure that all electronically recorded documents meet ERC standards. This is particularly important in jurisdictions that accepted electronic documents for recording before the ERC established standards. Standards and methods used prior to the issuance of ERC standards may no longer be applicable.
  • If documents can be electronically recorded twenty-four hours a day, seven days a week, it is possible that recorded documents that are submitted after business hours may not show up on an electronic search until the following business day. Until this potential problem is addressed, do not rely on electronic record searches performed outside of regular business hours.

 

State Bar of Michigan - Real Property Law Section

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