Property: other; act regarding survivorship of entireties interest in mortgages and land contracts; revise gender-specific language. Amends title & sec. 1 of 1925 PA 126 (MCL 557.81). TIE BAR WITH: HJR F'25

2025-2026 Regular Session Introduced by Joey Andrews and 26 co-sponsors

Switches to gender-neutral terms, clarifies survivorship of notes, mortgages, and land contracts for spouses in tenancy by the entirety; hinges on constitutional amendment.

bill electronically reproduced 06/10/2025

#civilrights:sexualorientationdiscrimination #property:other

Purpose

HB 4621 amends a 1925 statute (1925 PA 126; MCL 557.81) that governs the survivorship of notes, mortgages, and land-contract interests taken as part payment for property held as tenancy by the entirety. The bill replaces gender‑specific language (e.g., “husband and wife”) with gender‑neutral terms (e.g., “spouses”) and clarifies that the survivorship rule applies equally to mortgages and land contracts.

Key provisions

Revises the title and Section 1 of 1925 PA 126 (MCL 557.81) to use gender‑neutral language:

Replaces “husband and wife” with “spouses” throughout.
Updates cross‑references and sentence structure so the statute speaks to “spouses” and “survivor” rather than gendered terms.

Restates the substantive rule: when spouses who hold land as tenants by the entirety sell that land and accept, as part of the purchase price, a note or other obligation secured by a mortgage (or enter a land contract), the debt and interest payable to the spouses becomes payable to the surviving spouse upon the death of one spouse, and title to the mortgage (or rights under the land contract) vests in the survivor.

Enacting condition (tie‑bar): the amendatory act does not take effect unless a companion joint resolution (House Joint Resolution F / Senate Joint Resolution — request no. H00781'25 / S00781'25) becomes part of the Michigan Constitution pursuant to Article XII, §1. The bill is explicitly tied to that constitutional action.

Who is affected

Married persons (spouses) who hold property as tenants by the entirety and who accept mortgages, notes, or land contracts as part of sale consideration.

Purchasers and lenders who take mortgages or seller‑financed obligations payable to both spouses.

Survivors of one spouse (rights clarified to vest automatically in the surviving spouse).

Heirs and estates to the extent survivorship prevents those instruments from passing through probate.

Procedural status and timeline (selected)

Filed/Introduced: March 12, 2025.

Committee activity and public hearing: April 2025 (subcommittee and committee consideration; substitute reported favorably April 28, 2025).

Amended and passed one chamber: May 14–15, 2025 (passed and reported engrossed May 15, 2025).

Referred to Senate/other committees: Referred to State Affairs (May 16, 2025); bill electronically reproduced June 10, 2025 and referred to Committee on Government Operations (June 10, 2025).

Note: The bill is tied to House Joint Resolution F (HJR F'25); it will not take effect unless that joint resolution becomes part of the state constitution as required by the enacting section.

Impact and notes

The bill appears intended primarily to modernize statutory language and ensure inclusive, gender‑neutral drafting without substantively changing the survivorship rule established in the 1925 statute.

Because of the enacting condition, the statute will only take effect if the related constitutional amendment (HJR F / SJR) is adopted and ratified per the Michigan Constitution.

Fiscal impact is likely minimal; the change is mainly textual and clarificatory regarding survivorship of entireties interests in mortgages and land contracts.

Statutory reference: amends 1925 PA 126, sec. 1 (MCL 557.81).

Bill