Nonprobate transfers of real estate, the transfer by affidavit procedure for small estates, and the payoff amount in a mortgage payoff statement

Lastly, the bill creates a statute of limitations for claims to recover real property transferred to a beneficiary using a TOD document. Under the bill, such a claim is barred unless, within 120 days after the death of the sole owner or the last to die of the multiple owners who executed the TOD document, a complaint is filed and a lis pendens is filed or recorded in each county where any part of the real property is located.

Transfer by affidavit procedure for small estates Under current law, an heir, trustee, or person who was a guardian of a decedent at the time of the decedent's death may use a transfer by affidavit procedure to settle a decedent's estate if the value of the decedent's property does not exceed $50,000.

This bill specifies that the transfer by affidavit procedure may be utilized only if the gross value of the decedent's estate does not exceed $50,000. If the transfer by affidavit procedure is used to transfer an interest in or lien on real property, the bill requires the person making the affidavit to provide notice to the decedent's heirs at least 30 days before recording the affidavit in the office of the register of deeds in each county where the real property is located. Under current law and under the bill, the recording of the affidavit constitutes the transfer of real property to the affiant under the transfer by affidavit procedure. Finally, under the bill, if an interest in real property transferred using the transfer by affidavit procedure is subsequently acquired by a purchaser or lender in good faith, for value and without actual notice that the transfer was improper, the purchaser or lender takes title to the real property free of any claims of the decedent's estate, regardless of whether the transfer was proper.

Mortgage payoff statements Under current law, a secured creditor must provide a payoff statement to certain persons, upon request. Under current law, a secured creditor may not qualify a payoff amount or state that the payoff amount is subject to change before the payoff date. Under the bill, a secured creditor may qualify a payoff amount, state that the payoff amount is not practicably determinable, or state that the payoff amount is subject to change before the payoff date if the security instrument secures nonresidential real property and the payoff statement provides instructions for how to obtain an updated payoff amount at no charge.