Michigan Lien: A Complete Guide to Liens in the State

A lien is a legal claim recorded against a debtor’s property to secure repayment of a debt or obligation. Once it is filed with a county Register of Deeds, a lien gives a creditor the right to enforce a court judgment. This prevents a debtor from selling, refinancing, or transferring their property until the lien is satisfied.

What Is a Lien in Michigan?

In Michigan, a lien is a creditor’s legal right to attach a claim to a debtor’s property until the debts are repaid or the lien is satisfied. It must be filed with the county register of Deeds and the Michigan Secretary of State. Then, it becomes part of the public record and is accessible to potential buyers, lenders, and title companies.

Liens apply to a debtor’s assets, such as real property (homes, land, and commercial buildings) or personal property (vehicles, equipment, or other assets). So, debtors (property owners) may not be able to sell their property or transfer it until the liens are cleared. It is essential for buyers to search for liens on property before they acquire it.

Types of Liens in Michigan

Different types of liens may be issued to the public in Michigan. Common ones include:

1. Property Tax Liens - These are liens filed by the government (Michigan Department of Treasury) when property taxes are unpaid. These liens take priority, and failure to satisfy them may lead to foreclosure or sale of the property.
2. Mechanic’s or Construction Liens - These are filed by licensed contractors, subcontractors, or suppliers who are not paid for labor or materials. Under the Michigan law, these liens must be filed within 90 days of the completion of the project.
3. Judgment Liens - These are claims issued by a court judgment on a debtor’s property to repay a creditor. A creditor must file a Notice of Judgment Lien Form with the county Register of Deeds where a debtor’s property is located to enforce the lien.
4. Mortgage Liens - These are liens placed on real estate that are used as collateral by debtors to repay their mortgage loan. These liens remain active, even if the real estate is sold, until the debt is repaid in full and discharged.
5. Consensual Liens - These are liens placed on a property voluntarily by the owner to secure or repay a debt.
6. Federal/State Tax Liens - These are filed by the government at the federal or state level for unpaid taxes. They are attached to both real estate and personal property.
7. HOA or Municipal Liens - They are filed by homeowners’ associations for unpaid dues or by municipalities for delinquent utility charges, assessments, or code violations.

How to Search for Liens in Michigan

In Michigan, anyone may find information, such as the lienholder’s name, debt amount, recording date, and property description in lien records. These records are considered public pursuant to the state’s Freedom of Information Act and accessible through several resources, including:

• County Register of Deeds Offices: Every county has a Register of Deeds who is responsible for maintaining records of liens and property filings. Individuals may contact their offices to search for liens by using the owner's name, property address, or parcel number.
• Online County Databases: Many counties, including Wayne, Oakland, and Kent, provide online search systems that enable the public to view property and lien records.
• Michigan Court Records (MICourt): Court records, including judgment liens, are available to the public through the MiCOURT Case Search Portal.
• Title Companies and Third-Party Services: There are private companies and websites that allow the public to search for liens, especially in real estate transactions. Although these are records of liens, individuals must be careful and know that official liens in the state are accessible at the Register of Deeds offices.

Lien Records in Major Michigan Cities

In Michigan, liens are managed at the county level, so individuals must seek to access the documents in the county register of deeds where the property is located:

• Detroit (Wayne County): The Wayne County Register of Deeds maintains lien and property records in the county. They also provide an online portal that allows individuals to search for lien information.
• Grand Rapids (Kent County): Lien searches are managed by the Kent County Register of Deeds in the county.
• Warren (Macomb County): The Macomb County Register of Deeds provides public access to lien and property records.
• Ann Arbor (Washtenaw County): Lien records are maintained by the Washtenaw County Register of Deeds.
• Lansing (Ingham County): The Ingham County Register of Deeds manages lien filings and property records.

How Long Does a Lien Stay on Property in Michigan?

In Michigan, how long a lien stays active on a property depends on the type of lien filed in the county. An overview is presented below:

• Property Tax Liens: They are active until the taxes are fully paid or the property is foreclosed.
• Mechanic’s Liens: These liens must generally be enforced within 1 year of filing, or they expire.
• Judgment Liens: They are usually valid for five years in the state and may be renewed by the court.
• Mortgage Liens: The liens continue on the property until the mortgage is fully paid and a discharge is recorded.
• Tax Liens (Federal) Federal tax liens typically last for 10 years.

How to Remove a Lien in Michigan

In Michigan, it is important to remove a lien from a property when the debts have been resolved or the lien has expired. Common methods include:

• Paying the Debt in Full: When a debtor fully repays their debts, the lienholder must issue a discharge or release. This is filed with the county register of deeds. This method is the best way of removing a lien on a property.
• Negotiating a Settlement: Here, the debtor negotiates a partial repayment with the creditor as a means of settling their debts.
• Court Petition: Property owners may proceed to court to challenge the placement of a fraudulent, invalid, or improperly filed lien on their property.
• Recording a Discharge or Release: Even after completing a repayment, debtors (property owners) should ensure that the lienholder records the discharge to clear title.

Liens in Michigan are an essential part of property and debt enforcement. They protect creditors while requiring property owners to meet their financial obligations. In Michigan, it is advised for individuals to learn about liens due to their strict deadlines and filing requirements. Additional information for liens is available at the county register of deeds office, a title company, or an attorney in the state.