Legal Question in Real Estate Law in Michigan

I have a buyer but the sell is on hold because the title company needs a discharge for the property. I had refinanced this property in 1994 and the company from whom I re-fianced did not file with the county. Even though I have a discharge from the company who I had refinanced to, the title company wants to make sure there is no lien on the previous loan. Both the companies have been taken over by the same company but it will not give me a letter saying there is no lien on the property. They say it could take up to 90 days. I am afraid I am going to loose my buyer. Is there any alternative? If the sale falls thru, do I have a recourse against the mortgage company for not filling the discharge in the first place?

Thanks


Asked on 1/06/10, 5:59 pm

1 Answer from Attorneys
Kevin Hirzel Meisner & Associates, P.C.

You could try to file a quiet title action to clear title to the property in order to try and preserve the sale. If the sale falls through and the mortgage company failed to discharge the mortgage you may have a cause of action if it was required to record a discharge and failed to do so. Under MCL 565.44 you could be entitled to $1000 plus actual damages. However, I would need to know when the mortgage was paid off in order to provide a better answer. I would recommend consulting an attorney immediately.

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Answered on 1/11/10, 6:20 pm


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