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HB 5598

Property: recording; penalties for knowingly drafting or submitting false documents to the register of deeds; provide for. Amends title & sec. 1 of 1883 PA 98 (MCL 565.371).

2023-2024 Regular Session Introduced by Brenda Carter and 9 co-sponsors

Strengthens penalties for forging or knowingly submitting fraudulent real estate conveyances and lets clerks refer suspected fraud to prosecutors.

assigned PA 154'24
#property:recording
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Bill Summary · HB 5598

Summary — HB 5598 (Public Act 154 of 2024)

Status: Enacted (PA 154 of 2024). Approved by Governor Nov 13, 2024; filed with Secretary of State Nov 13, 2024. Effective: Sine die (91st day after final adjournment of the 2024 Regular Session).
Statutes amended: MCL 565.371 (1883 PA 98). Companion bill: HB 5599 (MCL 777.15b) — tie‑barred to HB 5598.

Main purpose

To strengthen criminal penalties for filing, drafting, or submitting fraudulent real‑estate conveyance documents recorded with county registers of deeds and to give registers of deeds a mechanism to refer suspected violations to prosecutors.

Key provisions

  • Revises 1883 PA 98 (MCL 565.371):
    • Makes it a felony for a person who "procures or places upon record any conveyance of real estate" with intent to deceive another as to the veracity (truthfulness) of the recorded document. Penalty: up to 3 years' imprisonment, a fine up to $5,000, or both.
    • Establishes a more serious felony for a person who knowingly and willfully drafts or submits a document for filing/recording with a Michigan register of deeds with intent to defraud the owner of real estate or an interest in real estate. Penalty: up to 10 years' imprisonment, a fine up to $5,000, or both.
    • Permits a register of deeds who believes a submission violates the section to provide evidence to the county prosecutor.
  • HB 5599 (companion) would add the new drafting/submitting offense into the sentencing guidelines (Class D property felony, statutory maximum 10 years). Because of People v. Lockridge, guidelines are advisory, so sentencing remains judicially discretionary.

Who is affected

  • Perpetrators: individuals who draft, submit, or record forged or fraudulent conveyances with criminal intent.
  • Victims: property owners and those with real‑estate interests targeted by fraudulent filings.
  • Registers of deeds: gain authority to refer suspected fraud to prosecutors; also implicated in debates about record review responsibilities.
  • Criminal justice system: law enforcement, prosecutors, courts, correctional and community supervision systems (potential for increased caseloads).
  • Title industry stakeholders (notaries, title companies, attorneys): noted concerns that legitimate actors could be exposed to prosecution if language is not carefully applied; H‑1 substitute limited liability by focusing on intent to defraud.

Fiscal and procedural impact

  • Fiscal: Indeterminate but likely net negative for state/local governments if prosecutions/convictions increase. Estimated costs cited in analyses: ~ $48,700 per year per state prison inmate; ~ $5,400–$5,600 per year per supervised felony probationer. Any increase in penal fines would augment law library funding.
  • Procedural: Bill authorizes registers of deeds to refer suspected violations to county prosecutors; companion changes to sentencing guidelines are advisory under current Michigan case law.

Legislative history (selected)

  • Introduced: March 20, 2024 (Rep. Tullio Liberati).
  • Passed House: June 13, 2024 (H‑1 substitute adopted).
  • Passed Senate / House concurred: Oct 23, 2024.
  • Enacted as Public Act 154 of 2024: Approved Nov 13, 2024.

Compiled from official sources — confirm details with the bill’s official record.

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