Title Considerations for Real Estate Transactions in Southeast Michigan
What buyers, sellers, and real estate professionals need to know to ensure clear ownership and smooth closings in Macomb, Oakland, and Wayne Counties.
Understanding Title in Southeast Michigan Real Estate
Real estate transactions in Southeast Michigan involve more than negotiating price and signing contracts. Whether a property is located in Macomb, Oakland, or Wayne County, how title is held and transferred plays a critical role in protecting ownership rights and ensuring a successful closing.
Buyers and sellers in this region often assume title details will “work themselves out,” but ownership structure, marital status, and entity involvement can significantly impact the transaction. From single-family homes to investment properties, understanding title early in the process helps prevent last-minute issues, funding delays, or post-closing complications.
A knowledgeable title insurance professional helps ensure that ownership is properly vested, liens are addressed, and documents are prepared correctly—so the transaction can move forward with confidence.
Ownership Vesting and Title Structure in Michigan
Understanding the Five Ways to Hold Title
One of the most important decisions in any real estate transaction is how title will be held. Michigan law recognizes several forms of ownership, each with distinct legal implications that affect inheritance, survivorship, and creditor rights.
Common vesting options include:
- Tenancy in Common
- This is the default form of ownership when no tenancy is stated. Each owner holds a separate interest, and upon death, that interest passes to the owner’s heirs—not the remaining co-owners.
- Joint Tenancy
- Each joint tenant has equal rights to possession. If one joint tenant survives the others, they may acquire the entire interest.
- Joint Tenancy with Rights of Survivorship
- Unique to Michigan, this structure creates a joint life estate with remainder to the survivor. Transfers to third parties convey only the life estate and contingent remainder.
- Joint Tenancy with Full Rights of Survivorship
- Ownership automatically transfers to the surviving joint tenant(s) upon death. Specific statutory language must be used to create this form of title.
- Tenancy by the Entireties
- This is presumed for married couples in Michigan. The property automatically passes to the surviving spouse and offers strong creditor protections.
Selecting the correct vesting is not just a legal formality—it directly impacts long-term ownership rights and estate planning considerations.
Purchasing or Selling Property Using an LLC
Title Requirements for Entity Transactions
When real estate is purchased or sold in the name of a limited liability company, additional documentation is required to verify signing authority and protect all parties involved.
Key considerations include:
- An Operating Agreement is required to confirm who is authorized to sign on behalf of the LLC.
- An entity itself cannot sign documents—an individual must always sign in a representative capacity, such as “John Doe, Member of ABC LLC.”
- If multiple members exist, one designated member may sign if authorized through a Corporate Resolution prepared by the title company.
- If a trust is a member of the LLC, a current Certificate of Trust must be reviewed to confirm authority.
Proper review of entity documentation ensures compliance, avoids delays, and protects the validity of the transaction.
Common Pitfalls to Avoid During the Closing Process
Five Actions That Can Disrupt a Real Estate Closing
Many closing delays stem from avoidable changes made late in the transaction. Buyers and sellers should avoid the following once under contract:
- Changing marital status without notifying the lender and title company, as this directly affects how title is held.
- Changing jobs, especially if income or employment type changes prior to funding.
- Moving or switching funds after the lender has verified assets.
- Paying off accounts unless specifically instructed by the lender.
- Making large purchases that could impact credit or debt-to-income ratios.
Clear communication with both the lender and title company is essential to avoid last-minute complications.
Funding, Timing, and What to Expect on Closing Day
How Funds Are Released and Why Timing Matters
Closing day logistics vary depending on lender requirements and signing schedules.
- Simultaneous signings typically fund within about an hour once all documents are reviewed.
- When a mortgage is involved, lenders may require final authorization before funds are released.
- Wire transfers are processed through the Federal Reserve, and wires sent after 2:00 p.m. are not guaranteed same-day delivery.
- All funds must be sent using official wiring instructions—cashier’s checks and personal checks are not accepted for cash transactions.
Final funding occurs only after all documents and funds are verified by Sterling Title, ensuring accuracy and compliance.
The Value of Title Expertise in Every Transaction
Real estate transactions across Southeast Michigan require careful attention to ownership structure, documentation, and funding procedures. From selecting the correct way to hold title to navigating entity purchases and closing requirements, each step plays a vital role in protecting all parties involved.
Working with an experienced title insurance professional provides clarity, risk mitigation, and peace of mind throughout the transaction. When title is handled correctly from the start, buyers and sellers can move forward confidently—knowing their investment and ownership rights are secure.
In a complex and fast-moving market, expert title guidance isn’t just helpful—it’s essential.
