Michigan House Bill 5598: Cracking Down on Fraudulent Real Estate Documents

Michigan House Bill 5598, signed into law recently as Public Act 154 of 2024, aims to strengthen the penalties for those who knowingly submit fraudulent documents related to real estate transactions. The bill amends a prior Act designed to punish individuals who file false or fraudulent conveyances of real estate with the intent to deceive. Prior to this amendment, the law primarily focused on the act of recording fraudulent documents, but didn’t explicitly address the creation or submission of such documents. The key provisions of HB 5598 are that it broadens the definition of prohibited conduct to include not only recording fraudulent documents but also knowingly preparing or submitting them to the register of deeds.

Additionally, there are enhanced enforcement features as it increases the penalties for those convicted of these offenses. The penalty for knowingly drafting or submitting a fraudulent document is now a felony punishable by imprisonment for up to 10 years or a fine of up to $5,000, or both. The bill clarifies that the intent to defraud is a key element of the offense. This means that prosecutors must prove that the individual knowingly created or submitted a false document with the specific intent to deceive someone. The increased penalties and expanded scope of the law are intended to deter individuals from engaging in fraudulent real estate activities. The bill provides greater protection for property owners by criminalizing the act of creating or submitting fraudulent documents, even if they are not ultimately recorded. The law may lead to increased scrutiny of real estate transactions and greater diligence on the part of those involved in the recording process.

The typical scenario where this type of activity occurs is when someone forges a homeowner’s signature on a quitclaim deed and attempts to file it with the register of deeds to fraudulently transfer ownership. There are many instances where this has occurred such as when a Detroit woman faced this recently in 2023, highlighting the vulnerability of property owners to this type of fraud. Also, this can happen when an individual creates and files a fraudulent lien against a property in an attempt to extort money from the owner or disrupt a sale. Or when a person creates a fake document indicating a mortgage has been paid off when it hasn’t, potentially leading to the property being sold without the lender’s knowledge. While these examples may not be directly tied to HB 5598 prosecutions, they demonstrate the types of fraudulent activities the law seeks to prevent.

Michigan HB 5598 represents a significant step in combating real estate fraud. By strengthening the penalties and expanding the scope of the law, it aims to protect property owners and maintain the integrity of real estate records. It is important for individuals involved in real estate transactions to be aware of this law and to ensure that all documents are accurate and legitimate.

John Gwyn is an attorney in our Livonia office where he focuses his practice on the representation of community associations, management companies and developers with a particular emphasis on real estate and commercial litigation. He has handled many types of community association related matters, including assessment collections, lien foreclosures, bylaw violations, civil rights defense, and creditor bankruptcy matters. He recently wrote an article on

He has gained experience in community association law over the years through his representation of condominium and homeowners associations, as well as individual homeowners, in matters involving real estate, contract, and construction defect litigation issues. His extensive litigation and transactional background provides him with the experience necessary to handle even the most complex legal issues that neighborhood associations may encounter. He may be reached at (734) 261-2400 or jgwyn@cmda-law.com.