How to Access Property Records in Michigan

What Information Can You Find in Michigan Property Records?

Property records are used for various things, such as real estate transactions, property ownership transfers, property taxes, etc. Therefore, their information will differ based on the type and use. Some types of information you can find in Michigan property records include:

Property records also contain other information. This is simply a short list of the most common items.

Deeds and Conveyance Records

As of 2022, Michigan had 4,611,660 housing units. Deeds are legal documents that transfer ownership of property. During the sale of real property, they are signed by all parties, notarized, and clearly spell out the deal. The information you can find on deeds includes:

• Name of the Seller/Grantor and Buyer/Grantee.
• A detailed description of the property.
• Maps and plats along with boundaries and sometimes surveys showing the acreage and edges of the property.
• Conveyance language explaining the ownership transfer from one person or entity to another.
• Notarization and execution are at the bottom, where everyone signs to make it legal.

Property Tax Records

One downside of owning a home is paying annual property taxes. Each county's treasury and income tax office handles property taxes and bills each homeowner for their share. Property taxes pay for things like police, firefighters, EMTs, road maintenance, and schools. Michigan has one of the highest property tax rates in the country, at 1.32% of the home's value, which is much higher than the national average of 0.99%.

A standard property tax record in Michigan has the following information:

• Assessor Calculations - The document will show the assessor's calculations to find the owed property taxes.
• Property Owner Details - The record will show the property owner's name and other vital details, such as contact information.
• Location of the Property - The information must show the property's location by identifying the physical address and other characteristics.
• Tax/mill Rate - The record should show the tax or mill rate applicable to the local area. Each area has a different tax or mill rate based on budgetary needs.
• Exemptions - The record should identify any exemptions applying to the property. Michigan has multiple exemptions, such as the Neighborhood Enterprise Zone (NEZ) Act.

How Often is Property Tax in Michigan Assessed?

By Michigan laws, assessors must assess properties annually to find the market values and, thus, the taxable values. Local assessors at the county level identify all property that requires assessment within the jurisdiction and then conduct the study to determine the property values. While there is no standard assessment process, there are procedures assessors usually follow to determine the property's value. They include:

• Data Collection - The assessors gather data about the properties, such as physical characteristics, improvements, construction materials, and other relevant data.
• Valuation - The assessors then determine the property's value using approved methods. Often, this involves a market analysis examining the recent sales of similar properties in the area. The assessors may also consider the income the property earns or could earn.
• Notifications - Next, the assessors notify the property owners of the assessment through an official notice.
• Appeals - Property owners can appeal their assessment values if they consider them unfair. After the appeal, the board decides on the property's assessed value and sends a tax bill to the owner.

Property Liens and Encumbrances in Michigan

Along with mortgages, other types of involuntary liens, also called encumbrances, affect property. When you have a property with liens on it, it can be challenging to sell or transfer to another person until they are discharged (paid off).

Liens appear in many places, such as mortgage records, deeds, foreclosure documents, and court records. Too many liens on a property indicate that it is a bad investment. Investors use property records to find distressed properties, buy them cheaply, and then turn around and sell them for profit.

The two common types of liens in Michigan are voluntary and involuntary.

Voluntary Liens

You freely agree to voluntary liens, like mortgages, home equity loans, etc.

• Mortgage Liens - Anyone who cannot afford to pay cash for a home will need a mortgage. Mortgage records show a lot of information, such as the purchase price, down payment, loan amount, and terms (interest, etc.). When you take out a mortgage, you agree to allow the lender to put a lien on the house. The lien is insurance if you don't repay the loan, allowing the lender to seize and sell it in foreclosure.

  Some of the information in a mortgage includes:

  • Terms - The document will outline the loan terms, including the repayment schedule and how long it will be in effect.
  • Loan Amount - The record will show the initially borrowed amount plus the total repayable amount. The document should also show the interest rate used to calculate the full amount.
  • Property Description - The document should describe or identify the property under mortgage.
  • Priority - The record will show the mortgage's priority over other liens on the property.
  • Default and Foreclosure - The document will show the default conditions and the foreclosure process.

Other types of liens are involuntary and may result in foreclosure and the loss of your home.

Involuntary Liens

Involuntary liens are those over which you have no control. They are imposed because of a debt you owe. There are three types of involuntary liens. They are as follows:

• Mechanic's Liens - When a contractor, subcontractor, landscaper, laborer, or materials supplier contributes labor or materials to renovating or building on your property, if you do not pay them, they can put a lien on your property. These liens are called mechanic's liens. The lien uses the property as collateral so that the contractor will get paid. The person placing the lien must follow the strict guidelines and timetable, and they must sue you in court to start the foreclosure process.
• Tax Liens - Similarly, the county can put a tax lien on your real property for unpaid property taxes. Tax liens are very serious, and you could easily lose your home if you don't pay them off. Within a short amount of time, after the lien is placed, your home will be in foreclosure and eventually sold at auction. Investors look for tax lien properties to pick up cheap and sell for profit.
• Judgment Liens - Creditors also have the right to put a lien on your property for unpaid loans or overdue bills. These are called judgment liens. Judgment liens get their names from the fact that it requires a lawsuit and judgment. The creditor sues the homeowner, and if the judge rules in favor of the creditor, they can place a lien on the house. Then, after a sufficient waiting period, foreclose and sell it to recoup their losses.

The Process of Property Liens in Michigan

Claimants are encouraged to be careful when filing a lien. The exact process depends on the type of lien being filed. The standard approach of filing a mechanics lien in Michigan follows these steps:

• Parties with direct contracts do not need to send a notice. However, all other parties must send a preliminary notice before filing the lien. The claimants have 20 days after work completion to provide the notice, 30 if they are laborers. Once the prior notice has been sent, the claimant may begin the lien filing process.
• Claimants must fill the correct lien form with information such as their details, the property owner's address and personal details, the amount of the lien, a description of the property, the date of work, and signatures with notarization. The form must include text for the construction lien.
• The next step is to record the lien claim with the correct fees and at the right office. Claimants should be careful during this step to avoid rejection. As long as the filing is done before the deadline, it can be done electronically, in person, or via mail.
• Next, the claimant must serve a copy of the lien by personal service or by certified mail to the address of the property owner. With this, the claimant can enforce the lien per state regulations.

Easements and Covenants

Easements are side notes on a deed that provide access to the property for someone other than the owner. It could be as simple as a right-of-way for a cable company with towers installed on private property. They may enter the property and access the towers without asking.

Covenants dictate how a piece of property can be used. They are most often found in condo developments. Bylaws usually dictate that you cannot have certain types of pets. That is an example of a covenant.

Plats and Surveys

Plats and surveys are maps designed to show a property's boundaries. The plat will have boundaries for neighboring properties, while the survey will focus squarely on the target property.

Standard information present in a survey includes:

• Property Identification - The survey will identify the property using a plot number, physical address, and other identifiers.
• Owner's Name - The record will highlight the owner's name and other details, such as contact information and address.
• Boundary Lines - The document should show the property's boundary lines, which include measurements and angles.
• Surveyor Notes - The surveyor will include any information they may think is important or of concern.
• Boundary Disputes - The document will show any boundary disputes affecting the property.

Property Descriptions and Boundaries in Michigan

The legal property description is an integral part of property records. The county where the property resides crafts a detailed property description using landmarks, plats, surveys, and other descriptors to ensure anyone can identify the real property. This description appears on many documents, including the deed, property taxes, assessments, appraisals, plats, and other boundary maps.

Surveys are performed to measure real property. Surveyors use specialized equipment to measure and mark land boundaries to officially determine where a property ends and another begins. They are often used in land disputes or new construction projects.

Boundary disputes ensue whenever one person believes another is trespassing on their property. Often, the courts must step in and decide who owns what. Surveyors are frequently used to provide expert testimony to help the judge decide.

You can find property survey records with the local county register of deeds office in any of the 83 counties in Michigan. Use this resource to find the appropriate one.

Foreclosures

Foreclosures are also public records and appear in various property records indexes. Investors and savvy buyers look for distressed properties (those in pre-foreclosure or foreclosure) to buy for less than fair market value (FMV).