EADLINE FOR FILING

DISCHARGE OF A MORTGAGE

House Bill 4817

Sponsor:  Rep. David Farhat

Committee:  Commerce

Complete to 3-8-04

A SUMMARY OF HOUSE BILL 4817 AS INTRODUCED 6-10-03

The bill would amend Chapter 65 of the Revised Statutes of 1846, which deals in part with the recording and canceling of mortgages, in the following ways.

·                    Currently, a mortgagee or personal representative or assignee of the mortgagee must file a discharge of the mortgage with the register of deeds within 90 days after a mortgage has been paid or otherwise satisfied and discharged.  The bill would require the filing of a discharge within seven days.

·                    Currently, if a mortgagee refuses or neglects to file the discharge of a mortgage within the time required, the mortgage is liable to the mortgagor for $100 damages, as well as actual damages caused by the neglect or refusal.  The bill would make the mortgagee liable for $1,000 damages and all actual damages.

The bill also would make a number of modernizing amendments to the language of the statute.

MCL 565.41 and 565.44

                                                                                           Legislative Analyst:   Chris Couch

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.