Michigan House Bill HB4621

Michigan 2025-2026 Regular Session

• Introduced: 6/10/25
• Refer: 6/10/25

Caption

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

Summary

House Bill 4621 updates a 1925 Michigan law governing survivorship rights in mortgages and land contracts tied to property held by spouses as tenants by the entirety. The bill modernizes the statute’s language by replacing gender-specific references to “husband and wife” with the term “spouses,” while preserving the underlying rule that, when spouses sell entireties property and take back a mortgage, note, or land contract as part of the purchase price, the surviving spouse receives the remaining debt and the mortgage or contract interest unless the instrument expressly provides otherwise. The bill also revises the title of the act to reflect the broader, gender-neutral terminology and to clarify that the survivorship rule applies both to mortgages and land contracts. It includes a tie-bar provision stating that it will not take effect unless a related constitutional amendment proposal becomes part of the Michigan Constitution, indicating that the statutory change is contingent on separate constitutional action.

Impact

HB4621 would amend MCL 557.81, the statute governing survivorship of obligations arising from the sale of property held by spouses as tenants by the entirety. Its practical effect is limited to clarifying and modernizing the statutory wording, not changing the substantive survivorship rule: the surviving spouse would still inherit the right to payment and title to the mortgage or land contract unless the parties expressly state otherwise. The bill affects spouses, estate and property practitioners, lenders, and parties to land contracts involving entireties property.

Sentiment

Based on the bill text and available context, the measure appears to be a technical and noncontroversial update. The main purpose is to revise outdated gendered language and align the statute with modern terminology, while leaving the existing property rule intact. No committee testimony or recorded votes were provided, so there is no evidence of opposition or strong debate in the available materials.

Contention

The only notable point of contention suggested by the bill text is procedural rather than substantive: HB4621 is tie-barred to a related constitutional amendment proposal, meaning it cannot take effect unless that separate measure is adopted. That linkage may reflect a broader legal or constitutional issue surrounding survivorship rights in entireties property, but the bill itself does not alter the underlying rule or create a new policy dispute. No specific opposing arguments or stakeholder concerns are included in the available record.