Category Archives: Michigan Real Estate Law

The Evolving Landscape of Sex Discrimination in Housing

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Aimee Stephens worked as a funeral director for R.G. and G.R. Harris Funeral Home in Garden City, Michigan for several years. Throughout that time, she struggled with her gender identity and, in 2013, she began dressing as a woman at work. The funeral home’s dress code was strictly gender-based and Stephens’ refusal to dress as a man, in compliance with the gender-based dress code, resulted in her termination (see more information here). Aimee Stephens filed a complaint with the Equal Employment Opportunity Commission (the “EEOC”), alleging her termination was the result of unlawful sex discrimination. The EEOC brought a lawsuit against the funeral home in the Eastern District of Michigan and the case is now in front of the United States Supreme Court, with oral arguments recently heard on October 8, 2019 (see more information here). Read more

Vacating a Road or Alley under the Land Division Act

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In Michigan, a significant portion of commercial and residential real estate development occurs through the creation of either subdivisions or condominiums. Typically, an owner of a large parcel of land will establish a condominium or subdivision as a means of dividing the land into various smaller lots (called “units” in a condominium) that can be individually sold. Although the more recent trend, particularly in residential developments, is to create condominiums, most older developments were done through creating platted subdivisions under the Michigan Land Division Act, MCL 560.101, et seq., or one of its predecessor statutes.

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Amending Deed Restrictions: Giving Meaning to Successive Terms without Ignoring Declarant Intent

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Introduction

Restrictive covenants in Michigan are valuable property rights and have been effectively used to assist in the orderly development of Michigan communities.  The rights contained in restrictive covenants are used by developers to implement their community visions and by property owners to protect and enhance the value of their homes.  Once adopted these provisions often require unanimous consent to change or modify by default, however, in many cases the original declarant includes an amendment provision to permit a stated percentage of lot owners (or other interested parties), less than all, to adopt an amendment.  The effective date of an amendment, even if validly adopted, may be subject to interpretation if the restrictive covenant creates successive terms.  Any party seeking to adopt an amendment to its declaration should be aware of these risks and the potential impact of the expiration of a period of time contained in their declaration. Read more

MICHIGAN COURT OF APPEALS RULES IN FAVOR OF TOWNSHIP IN ZONING ORDINANCE DISPUTE OVER SHORT-TERM RENTALS

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BACKGROUND

On October 25, 2018, the Michigan Court of Appeals issued an unpublished opinion in the matter of Concerned Property Owners of Garfield Township, Inc v Charter Township of Garfield, unpublished per curiam opinion of the Court of Appeals, issued October 25, 2018 (Docket No. 342831). The Garfield case involved the interpretation of a zoning ordinance that addressed short-term rentals of residential properties in certain districts. In Garfield, a number of homeowners frequently rented out their homes for short-term intervals, usually for about one week in duration. In September 2013, the Garfield Township Zoning Administrator expressed an opinion that the zoning ordinance then in effect, called “Ordinance 10”, permitted short-term rentals.

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Court rules that Michigan HOA cannot collect assessments after restrictive covenant expires

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In Deghetto v Beaumont’s Seven Harbors White and Duck Lack Association, issued June 22, 2017 (Docket No. 330972) (Unpublished Opinion), the Michigan Court of Appeals recently ruled that a homeowners’ association could not continue to collect assessments after the restrictive covenant expired.

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In Case of First Impression, Michigan Court of Appeals Rules that Foreclosure by Advertisement Sale Surplus Funds Must Be Distributed According to Priority of Interests in the Foreclosed Property

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On May 9, 2017, the Michigan Court of Appeals issued an opinion in ‘In re $55,336.17 Surplus Funds.  The Surplus Fund case is important as the Court was called on to interpret the procedure for distributing foreclosure sale surplus funds and determining the priority of parties claiming an interest in the surplus funds.

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What is a Personal Guaranty and Why is It Important with a Commercial Lease?

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Introduction

At some point in their lives, most adults have signed a lease agreement, whether it be the leasing of an automobile, an apartment on campus while attending college or renting a home. Since most of these leases are standard forms offered on a “take it or leave it” basis by the lessor or landlord, negotiating the base rent and term of the lease is typically the main and only focus for the lessee.

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