Bill > SB0752

This bill amends an existing Michigan law regarding the recording of property encumbrances (legal claims or restrictions on property), establishing new requirements for how certain instruments of encumbrance can be recorded. The bill requires that when recording a levy, attachment, lien, or similar document, the person filing must provide a full accounting of supporting facts and proof of service to the property owner, unless specific exceptions apply. These exceptions include tax liens, consensual agreements like mortgages, court-ordered encumbrances, and filings by a wide range of financial institutions and government entities such as banks, credit unions, insurance companies, federal agencies, and various types of lenders. The bill also includes a penalty provision stating that anyone who records an encumbrance without lawful cause and with the intent to harass or intimidate can be subject to legal penalties. Additionally, the bill is tied to another piece of legislation (Senate Bill 739) and will only take effect if that bill is also enacted. The changes aim to provide more transparency and protection for property owners when legal claims are made against their property.