Category Archives: Michigan Real Estate Lawyer

Vacating a Road or Alley under the Land Division Act

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.

Read more

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

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

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On October 25, 2018, the Michigan Court of Appeals issued an unpublished opinion in the matter of Concerned Property Owners of Garfield Township, Inc v Charter Township of Garfield, unpublished per curiam opinion of the Court of Appeals, issued October 25, 2018 (Docket No. 342831).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.

Read more

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

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.

Read more

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

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.

Read more

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

 

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.

Read more

House Bill 4463: Proposed Law Would Allow LLC’s to Pursue Landlord/Tenant Evictions without an Attorney

On March 30, 2017, Representatives VanSingel, Lucido, Sheppard, Webber, Howrylak and
Calley proposed House Bill 4463, which would amend MCL 600.101, et seq. by including a new section 5707.  Under current Michigan law, a limited liability company (“LLC”) is required to be represented by an attorney for any landlord/tenant matters.  The proposed law would allow single member LLCs (or two member LLCs if the two members are married) to handle evictions without requiring an attorney under certain circumstances.

First, the amount in dispute could not exceed the limit for small claims matters [currently $5,500].  Thus, if the damages exceeded $5,500 then an attorney would still be required.  Second, the LLC may only be represented by a member, a property manager or other agent with direct and personal knowledge of the facts in the complaint.

Read more

« Older Entries