Category Archives: Michigan Real Estate Lawyer

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.

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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.

When a business enters into a commercial lease however, the lease is usually signed by the business entity itself, which is typically organized as a corporation or limited liability company. By forming a corporation or LLC, the owners of a business can shield themselves from personal liability for the debts of the business in most situations. Accordingly, when a business entity signs a commercial lease to rent space in a commercial building, the entity signing the lease, as opposed to the owners of the business entity, is the one legally responsible for making the payments under the lease.

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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.

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Kevin Hirzel and Joe Wloszek Named Rising Stars By Super Lawyers

Congratulations to Kevin Hirzel and Joe Wloszek who have both been selected as “Rising Stars” by Super Lawyers for 2017. Being named as a Rising Star is a significant honor as no more that 2.5 percent of attorneys in the state are awarded the designation each year. Super Lawyers is an organization which uses peer nominations and evaluations combined with independent research to recognize outstanding attorneys in different practice areas. This prestigious designation is reserved for attorneys who are either 40 years old or younger, or attorneys who have been in practice for 10 years or less.

Kevin Hirzel is a Partner at Cummings, McClorey, Davis & Acho, P.L.C. and runs the community association practice group. He frequently represents Builders, Community Associations, Condominium Associations, Cooperatives, Co-Owners, Developers, Homeowner Associations, Investors, Property Owners and Property Managers throughout the State of Michigan. Cummings, McClorey, Davis & Acho, P.L.C. has Michigan offices in Clinton Township, Grand Rapids, Livonia and Traverse City.  Mr. Hirzel can be contacted at (734) 261-2400 or khirzel@cmda-law.com.

Joe Wloszek is an attorney with the law firm of Cummings, McClorey, Davis & Acho, P.L.C. where he focuses his practice on dispute avoidance, condominium law, commercial litigation, commercial real estate, large contractual disputes, and title litigation. He has extensive litigation and trial experience in state and federal courts involving commercial litigation issues and real estate matters. He can be reached at (734) 261-2400 or jwloszek@cmda-law.com.

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