Simon PLC Attorneys & Counselors – February 2025 Memorandum
PUBLIC ACT 154 OF 2024 – TARGETING TITLE FRAUD
For many years, scammers have filed false quit claim deeds and other documentation with Registers of Deeds throughout Michigan, resulting in tangled ownership chains, properties frozen with unmarketable title, and in the worst cases, people purchasing homes from a fake “owner” only to have the real owner arrive to void the sale. The pandemic increased electronic filing, which made it easier for fraudulent actors to escape verification.
Michigan’s Public Act 154 of 2024, which becomes effective March 2025, strengthens the penalties for those who knowingly submit fraudulent documents affecting title to real estate. This amends the existing law, which provided penalties for filing fraudulent conveyances of real estate with the intent to deceive. The new law broadens the definition of prohibited conduct to include not only recording fraudulent documents but also knowingly preparing or submitting them to the register of deeds.
Amended MCL 565.371 creates two felonies:
(1) A person that procures or places upon record any conveyance of real estate with intent to deceive any person as to the veracity of the document recorded is guilty of a felony punishable by imprisonment for not more than 3 years or a fine of not more than $5,000.00, or both.
(2) A person that knowingly and willfully drafts or submits a document to be filed and recorded with a register of deeds in this state with intent to defraud the owner of real estate or the owner of an interest in real estate is guilty of a felony punishable by imprisonment for not more than 10 years, a fine of not more than $5,000.00, or both.
In addition, the new law empowers the Register of Deeds to prevent fraudulent recordings by authorizing them to refer questionable documents to their county prosecutor. Increased scrutiny by those in the recording process has been needed for some time.
Hopefully, the increased penalties and expanded scope of the law will deter fraudulent real estate activities. There is greater protection for property owners and prospective purchasers in criminalizing the act of creating or submitting fraudulent documents, even if they are not ultimately recorded. Individuals may also register for the Property Records Notification (PRN) search service in their county to monitor whether any suspicious documents have been filed.
Our firm is available to assist anyone involved in real estate transactions to understand this law and perform the due diligence required to ensure that all documents are accurate and legitimate and their title is secure.
N.B. Not Legal Advice: Please contact us if you would like to discuss the facts and circumstances of your specific matter. Simon PLC Attorneys & Counselors expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this memorandum. The information contained herein may not reflect current legal developments and is provided without any knowledge as to the recipient’s location, industry, identity or specific circumstances. No recipients of this content, clients or otherwise, should act, or refrain from acting, on the basis of any content included in this memorandum without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the jurisdiction for which the recipient’s legal issue(s) involve. The application and impact of relevant laws varies from jurisdiction to jurisdiction, and our attorneys do not seek to practice law in states, territories and foreign countries where they are not properly authorized to do so.
