SB 193

Revoking a transfer of real property on death

Under current law, a person may transfer an interest in real property to a beneficiary without probate by designating the beneficiary, called a transfer on death (TOD) beneficiary, in a document that meets certain requirements. The designation of a TOD beneficiary in a document does not affect ownership of the interest in real property until the owner’s death.

Currently, an owner of an interest in real property may cancel or change the designation of a TOD beneficiary by executing and recording another document that designates a different TOD beneficiary or no beneficiary. This bill changes this process so that instead a document designating a TOD beneficiary may be revoked only by an instrument that is subsequently acknowledged by the owner and submitted for recording to the office of the register of deeds, and that is (1) a document designating a TOD beneficiary, (2) an instrument that expressly revokes the document designating a TOD beneficiary, or (3) an inter vivos deed containing an express revocation clause. In addition, under the bill, if a document designating a TOD beneficiary is made by more than one owner, (1) revocation by one owner does not affect the document designating a TOD beneficiary as to the interest of another owner and (2) if real property is owned by two or more individuals as joint tenants or by spouses as survivorship marital property, a document designating a TOD beneficiary of that property is revoked only if it is revoked by all of the living joint tenants or spouses.

Obtaining evidences of the termination of a decedent’s property interests

Under current law, a person may obtain evidence that certain property interests of a decedent have been terminated by providing information to the register of deeds of the county in which the property is located. Currently, to obtain evidence that a decedent’s property interests in real property have been terminated, a person must submit to the register of deeds a copy of the property tax bill for the year preceding the year of the decedent’s death. The bill allows a person to instead submit a copy of the most recent property tax bill.

Real property wholesaler contracts; disbursing deposits after rescission

Under current law, a real property wholesaler that contracts to sell its interest in a purchase agreement to a third party must provide certain written disclosures to the third party, or the third party may rescind the contract and is entitled to the return of any deposits or option fees paid by the third party. The bill provides that, if the third party rescinds the contract, a person holding deposits or option fees may disburse the deposits or option fees to the third party without any liability on the person’s part.

Also under current law, a real property wholesaler that enters into a purchase agreement as a buyer must provide certain written disclosures to the seller, or the seller may rescind the purchase agreement and retain any deposits or option fees paid by the real property wholesaler. The bill provides that, if the seller rescinds the purchase agreement, a person holding deposits or option fees may disburse the deposits or option fees to the seller without any liability on the person’s part.

Under current law, “real property wholesaler” is defined as a person that enters into a purchase agreement as a buyer and intends to sell the person’s rights as buyer to a third party, and “purchase agreement” is defined as a contract for the sale, exchange, option, rental, or purchase of residential real property that includes one to four dwelling units.

Filing satisfactions of judgment

Under current law, if a judgment debt is paid in whole or in part, a satisfaction may be filed and entered on the judgment and lien docket in the county where the judgment was first docketed. Currently, if the judgment has been entered on the judgment and lien docket in other counties, a certified copy of that satisfaction or a certificate by that clerk of circuit court under official seal may be filed in those other counties to update the judgment and lien dockets in those counties. The bill provides that an original satisfaction signed and acknowledged by the owner or the owner’s attorney may be filed in those other counties, rather than the evidence of satisfaction obtained from the clerk of court in the county where the judgment was first docketed.