Effective, March 29, 2019, the Michigan Marketable Record Title Act was amended to define what is required for a document to transfer or preserve certain title interests in land, and set a deadline of March 28, 2021, to record a document complying with the new requirements.
The change has the greatest impact on interests in land created more than 40 years in the past, such as:
For example, you may live in a residential neighborhood or condominium project first developed more than 40 years ago. At that time, the recorded deeds, plat or condominium master deed and bylaws creating the development set down rules limiting how the land could be used and improved. Those rules ensured that the property could only be used in certain ways, and granted you and other owners important rights that protect your land value. Such rules may prohibit neighbors from operating a business that would bring heavy traffic into your neighborhood. Or hurting your privacy by cutting down all their trees. Or building a tall structure that might block your view of a lake.
As another example, your business may operate in a retail center first developed more than 40 years ago. The building and use restrictions recorded at that time may prohibit industrial, adult entertainment or other uses that produce unwanted noise, odors or traffic that would disrupt your business. Or limit parking in areas that would block access to your loading dock. Or include other limits on use that you were counting on when you purchased or leased your parcel in the center.
Under the new amendment, if you want your rights to continue in effect, you must prepare and record at the Register of Deeds a notice that you intend to preserve your rights, and identifying the recording information for the original document creating those rights, no later than March 28, 2021. If you fail to do so, your rights will lapse.
For help preparing and recording a notice preserving your rights, contact your Real Estate Services Practice Group attorney at Warner.