DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

Michigan

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Michigan, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/michigan · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkConstruction advances made after a lien arises keep priority only if made on sworn statements with waivers.

Michigan at a Glance

Topic Michigan answer Where it comes from
Notice of furnishing Subs and suppliers serve it within 20 days after first furnishing MCL 570.1109
Claim of lien deadline Record within 90 days after the claimant's last furnishing MCL 570.1111(1)
Suit deadline Foreclose within 1 year after the claim of lien is recorded MCL 570.1117(1)
Priority Liens beat interests recorded after the lien arises (first actual physical improvement); interests recorded before it win MCL 570.1119(3), (4)
Construction advances Advances after the lien arises keep priority only if made on a sworn statement with waivers MCL 570.1119(4)
Bond Twice the lien amount MCL 570.1116
Recording act Race-notice: void against a later good-faith purchaser for value whose conveyance is first recorded MCL 565.29
Remote notarization Yes, through approved remote electronic notarization platforms MCL 55.286b
Deed transfer tax State $3.75 per $500; county $0.55 per $500 (up to $0.75 in counties of 2 million or more); seller pays; controlling-interest transfers taxed MCL 207.523, 207.525 (state); 207.504 (county)
Mortgage/indebtedness tax None (no state statute)
Future advances Future advance mortgage: advances have priority as of recording MCL 565.902
Land divisions Land Division Act: municipal approval of divisions, with limits on the number of splits MCL 560.108, 560.109
Title premium regulation Filed under Insurance Code Chapter 24 MCL 500.7312

1. Mechanics' Lien Rules

Plain English

Michigan's Construction Lien Act works on notices and sworn statements. The owner records a notice of commencement. Subcontractors and suppliers serve a notice of furnishing within 20 days after first furnishing. To claim a lien, the claimant records a claim of lien within 90 days after its last work and sues within 1 year after recording. Liens arise at the first actual physical improvement and beat anything recorded after that. A mortgage recorded first keeps priority, but its later advances keep priority only if the lender paid against a contractor's sworn statement and got lien waivers. The old Homeowner Construction Lien Recovery Fund was repealed in 2010 (MCL 570.1201-570.1207, repealed by 2010 PA 147).

Key Rules

Lien right (MCL 570.1107). Contractors, subcontractors, suppliers, and laborers who provide an improvement have a lien on the interest of the owner or lessee who contracted for it, capped at the contract amount less payments.

Notice of furnishing (MCL 570.1109). Subcontractors and suppliers serve the designee and general contractor named in the notice of commencement within 20 days after first furnishing. A late notice doesn't defeat the lien for work before service, except to the extent the owner already paid under a sworn statement or waiver (MCL 570.1109(6)); laborers have separate rules.

Claim of lien (MCL 570.1111(1)). Recorded with the register of deeds within 90 days after the claimant's last furnishing. Within 15 days after recording, the claimant serves a copy on the designee (or the owner or lessee if none) (MCL 570.1111(5)); a sub's or supplier's claim attaches proof of service of the notice of furnishing (MCL 570.1111(4)).

Enforcement (MCL 570.1117(1)). Foreclose within 1 year after recording; record a lis pendens when suit is filed.

Priority (MCL 570.1119). Construction liens have equal priority among themselves. A lien beats interests recorded after it arises; a mortgage recorded before it arises keeps priority, except for advances made after the lien arises unless the lender has a sworn statement, disbursed according to it, and got waivers from the contractor and all who served notices of furnishing.

Bond (MCL 570.1116). A cash or surety bond of twice the lien amount is filed with the county clerk; the lien is discharged when the clerk's certificate of a sufficient bond is recorded with the register of deeds.

Residential protections. The Homeowner Construction Lien Recovery Fund sections (MCL 570.1201-570.1207) were repealed by 2010 PA 147.

Practice Points

  1. Get the notice of commencement and sworn statement. They tell you who can lien and how much is owed.
  2. Construction loan draws: collect sworn statements and waivers from everyone on the statement and everyone who served a notice of furnishing before each advance.
  3. First actual physical improvement: inspect before recording the mortgage. Work already on site means liens may come ahead of it.
  4. Bonding over at 2x is the usual cure for a recorded claim.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

Michigan deeds are acknowledged and recorded with the county register of deeds, and must meet statutory recording requirements (names printed under signatures, the drafter's name and business address, and so on). The recording act is race-notice: an unrecorded conveyance is void against a later good-faith purchaser for value whose conveyance is recorded first, and a quitclaim form doesn't by itself defeat good faith. Michigan approves remote electronic notarization platforms. The seller pays both the state transfer tax ($3.75 per $500) and the county transfer tax ($0.55 per $500), with exemptions such as some principal-residence sales where the taxable value (SEV) hasn't risen.

Key Rules

  • Recording act (MCL 565.29). Race-notice.
  • Recording requirements (MCL 565.201). Printed names under signatures, the notary's printed name, grantee addresses, the drafter's name and business address, page format (margins, 10-point type, first-line statement of the recordable event), SSN masking, and an English translation if needed.
  • Remote electronic notarization (MCL 55.286b). Notaries must use a platform approved by the Secretary of State and the Department of Technology, Management, and Budget.
  • State real estate transfer tax (MCL 207.521 et seq.). The seller or grantor is liable (MCL 207.523(2)). Rate $3.75 per $500 or fraction (MCL 207.525(1)). Exemptions in MCL 207.526.
  • County transfer tax (MCL 207.504). $0.55 per $500, or up to $0.75 in counties of 2 million or more people.

Practice Points

  1. Check recording requirements before sending documents; rejected recordings delay priority.
  2. Apply exemptions carefully (MCL 207.526), especially the principal-residence exemption.
  3. Condo defects created by the insured can fall under Exclusion 3(a) (see Triple Props. Detroit, LLC v. First Am. Title Ins. Co., No. 25-1986 (6th Cir. Apr. 17, 2026) (unpublished)). Document what the insured knew.

Citations

3. Securing Future Advances

Plain English

Michigan has a future advance mortgage statute (1990 PA 348). A future advance mortgage has priority for each future advance as if the advance had been made when the mortgage was recorded. A recorded mortgage can be amended to become a future advance mortgage, with priority from the amendment's recording. The statute has exceptions, and construction loans are also subject to the Construction Lien Act's sworn-statement rules (section 1).

Key Rules

  • Priority (MCL 565.902). Future advances have priority as of recording, "except as otherwise provided by this act." A future advance is any later obligation the mortgage secures, obligatory or optional (MCL 565.901). The act doesn't give priority over interests recorded before April 1, 1991 that would otherwise have priority (MCL 565.904).
  • Amendment (MCL 565.903). A mortgage amended to become a future advance mortgage gets priority from the amendment's recording.
  • Construction advances (MCL 570.1119(4)). See section 1.

Practice Points

  1. Read the mortgage for future advance language and any stated maximum.
  2. Amended mortgages: priority for new advances runs from the amendment's recording date. Date down to it.
  3. HELOC payoffs: get a signed freeze and close request with the payoff.

Citations

4. Subdivision Statutes and Regulations

Plain English

Michigan's Land Division Act controls splitting land. Owners may make a limited number of divisions of a parent parcel based on its size (2025 PA 58, effective March 24, 2026, raises the base allowance and lets local ordinances allow more), with municipal approval (usually within 45 days of a complete application). Each new parcel must have an accurate legal description, a depth no more than 4 times its width (unless an ordinance allows otherwise), and proper access. Dividing beyond the allowed number requires a plat. Lots in a recorded plat can't be further divided except as the municipality permits, generally into no more than 4 parts.

Key Rules

  • Division allowances (MCL 560.108, as amended by 2025 PA 58, effective March 24, 2026). First 10 acres: 4 parcels until March 24, 2027, then 10 parcels; plus 1 for each whole 10 acres over the first 10 (up to 11 more) and 1 for each whole 40 acres over 120. Parcels of 20+ acres may get 2 more in some cases, accessible parcels of 40+ acres don't count, and a local ordinance may allow more.
  • Approval (MCL 560.109). The municipality must approve or deny a complete application within 45 days; parcels must meet the 4-to-1 depth-to-width rule (not applicable over 10 acres unless an ordinance says otherwise), have accurate legal descriptions, and meet access requirements.
  • Platted lots (MCL 560.263). Further partition must follow municipal ordinances, generally into no more than 4 parts.
  • Deed statement (MCL 560.109(3)). A deed to unplatted land must state how many divisions ("zero", a number, or "all") are conveyed; without it, the division rights stay with the remainder of the parent parcel.

Practice Points

  1. New parcel? Get the municipal land division approval.
  2. Check the deed for the statutory statement about further divisions.
  3. Condominium projects follow the Condominium Act. Confirm the master deed and subdivision plan.

Citations

5. Title Premium Rates

Plain English

Michigan title insurers must file their rates with the Department of Insurance and Financial Services (DIFS) under the general rate-filing provisions of the Insurance Code (Chapter 24).

Key Rules

  • Rate filing (MCL 500.7312). "The rates of every title insurer shall be filed pursuant to the applicable provisions of chapter 24." Filings go to the director under MCL 500.2406 and must meet the MCL 500.2403 standards.
  • Title insurers (MCL 500.7300 et seq.). Title agents and solicitors must be licensed under chapter 12 (MCL 500.7317). The general anti-rebate rule bars any rebate or inducement not specified in the policy (MCL 500.2066).

Practice Points

  1. No rebates or inducements not specified in the policy (MCL 500.2066).

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Michigan has a state real estate transfer tax of $3.75 per $500 and a county tax of 55 cents per $500 (higher in Wayne County). The seller pays. Some home sellers can get the state tax back if the home's value has not risen. Michigan has no mortgage tax.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • State tax. $3.75 per $500 (MCL 207.523). County tax. $0.55 per $500, or up to $0.75 in counties of 2 million or more (MCL 207.504). The state rate is set by MCL 207.525.
  • Who pays. The seller (grantor).
  • Principal residence exemption. A seller who claimed the principal residence exemption (MCL 211.7cc) is exempt from (or can get a refund of) the state tax if the SEV is equal to or less than the SEV when acquired (or after the certificate of occupancy, if later), and the sale was arm's-length (MCL 207.526(u)).
  • Controlling interests. Contracts transferring a controlling interest (more than 80%) in an entity are taxed if real property is 90% or more of the entity's assets (MCL 207.523(1)(c), 207.522).

(b) Mortgage, indebtedness or intangible tax

  • None. Michigan has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

  • Recording fee of $30 per document regardless of pages, plus $3 for each additional instrument assigned or discharged (MCL 600.2567(1)).
  • Property transfer affidavit is filed by the buyer with the local assessor within 45 days of the transfer (MCL 211.27a(10)); it is not recorded.

Practice Points

  1. Worked example. A $400,000 sale (non-Wayne): state $3,000 plus county $440.
  2. No mortgage tax on loans.

Citations

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