A Michigan real estate licensee is advising a buyer who is purchasing a property at a tax foreclosure sale conducted by the county treasurer under MCL 211.78m. The buyer asks what type of deed they will receive and what title protection it provides. Which of the following is the MOST accurate response?
Correct Answer
A) The buyer will receive a State of Michigan deed (tax deed), which extinguishes most prior liens and interests
Under Michigan's General Property Tax Act (MCL 211.78m), when the county treasurer forecloses on property for unpaid taxes and sells it at auction, the buyer receives a deed from the State of Michigan (often called a tax deed or state treasurer's deed). A critical feature of Michigan's tax foreclosure process is that it extinguishes most prior liens, mortgages, and encumbrances on the property, providing the buyer with a relatively clean title. This is a powerful aspect of Michigan tax foreclosure law that distinguishes it from other types of foreclosure sales where prior liens may survive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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