Michigan Laws 570.585 – Escrow account; establishment to satisfy lien; release
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 570.585
- Buyer: means a purchaser or lessee of a legal or equitable interest in real estate. See Michigan Laws 570.582
- Commercial real estate: means real estate or an interest in real estate that is not any of the following:
(i) Real estate zoned for single-family use and on which no building or structure is located. See Michigan Laws 570.582Escrow: Money given to a third party to be held for payment until certain conditions are met. Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Lien: A claim against real or personal property in satisfaction of a debt. Seller: means the equitable or legal owner or lessor of an interest in real estate. See Michigan Laws 570.582 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) If a claim of lien recorded under section 4 would otherwise prevent the closing of a transaction involving commercial real estate, the parties to the transaction shall, subject to subsection (2), establish an escrow account from the proceeds of the transaction in an amount sufficient to satisfy the lien. A buyer or seller shall not refuse to close the transaction because of the requirement of establishing an escrow account under this subsection. The money shall remain in the escrow account until the rights to the money have been determined by a written agreement of the parties, a judgment or order by a court of competent jurisdiction, or any other method agreeable to the parties.
(2) An escrow account is not required under subsection (1) if either of the following circumstances exists:
(a) Alternative procedures are available that will allow the transaction to close and that are acceptable to all the parties to the transaction.
(b) The proceeds from the transaction are insufficient to satisfy all liens against the commercial real estate under this act.
(3) If an amount sufficient to satisfy a commercial real estate broker’s lien is escrowed under subsection (1), the lien is extinguished and the real estate broker shall provide a release of lien that meets the requirements of 1937 PA 103, MCL 565.201 to 565.203, and is substantially in the following form:
| RELEASE OF LIEN |
The undersigned is the claimant under a claim of commercial real estate broker’s lien recorded on _______________ [date] in the office of the register of deeds of _______________ County, Michigan, at Liber ____________, Page __________, or at __________ [enter other unique identifying numbers]. The undersigned releases the lien on the following described property:
| [Legal description] | |
| [Name of Claimant] | |
| By:________________________ | |
| Its Authorized Agent | |
| Signed and sworn to before me in ____________ County, Michigan, | |
| on ________________, ______[year]. | |
| _______________________________ | |
| [Notary’s name, county, acting | |
| in county, state, and date | |
| commission expires] | |
| Prepared By: | |
| Return To: |