Keiko is purchasing a home in Ingham County. Her lender requires title insurance as a condition of the mortgage. The title insurance company discovers a judgment lien against the seller that was recorded with the Register of Deeds two years ago. At closing, the judgment lien is paid off from the seller's proceeds and a lien release is recorded. Which statement best describes how the recorded lien release protects Keiko?
Correct Answer
D) The lien release provides constructive notice to all future parties that the lien has been discharged, protecting Keiko's title from future claims based on that lien
Recording the lien release with the Register of Deeds provides constructive notice to all subsequent parties — future buyers, lenders, and creditors — that the judgment lien has been fully satisfied and discharged. Under MCL 565.29, any person who later searches the title will find the recorded release and cannot claim the lien as a basis for encumbering Keiko's title. This is the core protective function of Michigan's recording system.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
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