Category Archives: Property Management

The Impact of COVID-19 on Commercial Real Estate

The Coronavirus and the State of Emergency

On March 10, 2020, the Michigan Department of Health and Human Services identified the first two presumptive cases of coronavirus, also known as COVID-19, in the State of Michigan. On March 16, 2020 Governor Whitmer signed Executive Order 2020-9 which closed restaurants, bars, cigar lounges, movie theaters, casinos, libraries, and gyms from the public. On March 23, 2020, Governor Whitmer signed Executive Order 2020-21 which imposed a temporary stay-at-home order for non-essential matters, which was later extended and expanded through Executive Orders 2020-42, 2020-59, 2020-70, 2020-77, and 2020-92, and is currently in effect for the majority of the State through at least May 28, 2020.

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Landlord Tenant Issues in the Time of COVID-19

The novel coronavirus disease (“COVID-19”) has impacted nearly every aspect of life, including residential housing. People living in communal living spaces and apartment buildings need to take particular care to prevent and address community spread. Landlords and tenants alike may be affected by economic uncertainty and strain due to the pandemic. In is therefore crucial that landlords and tenants prepare to respond to the unique issues raised by the spread of COVID-19. This article will highlight some of those concerns and give insight into how landlords and tenants may tackle them.

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The Dangers of Owning Property as Joint Tenants with Full Rights of Survivorship

There are several ways in which property can be held by multiple owners.  For married couples, one of the most commonly used estates is the tenancy by the entireties.  It provides a right of survivorship that enables a surviving spouse to hold property without having to proceed with probate.  In Michigan, this estate is only available to married couples.  In some instances, parties may seek to mimic the right of survivorship contained in a tenancy by the entirety by holding property as joint tenants with a full right of survivorship.  Similar to a tenancy by the entireties, this estate cannot be unilaterally severed by the act of one of the parties, and it provides an indestructible right of survivorship to the surviving joint tenants.  This may make it appear to be a more attractive option, in some circumstances, to a tenancy in common which is the presumptive estate for unmarried individuals in Michigan.  However, parties seeking to utilize a joint tenancy with full right of survivorship should be aware of the risks that come with such an estate.

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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.

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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.

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