Real Estate Law in Michigan

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Michigan real estate law governs transactions related to property and projects to develop and use real estate. Understanding Michigan’s real estate laws can help you protect your legal and financial interests as you buy or sell property, develop real estate, or operate investment properties. A seasoned attorney can help you understand your rights and obligations in a real estate matter. Contact Herbert Machnik Law Firm for an initial case evaluation with a real estate lawyer to learn more about how Michigan’s real estate laws may affect your proposed transaction or project.

Common Real Estate Transactions in Michigan

Examples of transactions governed by Michigan’s real estate laws include:

Purchases and Sales of Residential and Commercial Real Estate – Various state laws govern purchase agreements for residential and commercial real estate. Parties need to work through various complex issues when negotiating the terms of purchase agreements, including representations, warranties, and closing contingencies.
Residential and Commercial Leases – Landlords and tenants will enter residential or commercial leases under which tenants take exclusive possession of property for the term of the lease. Michigan law imposes various restrictions and requirements on residential leases to protect tenants’ safety and welfare. However, commercial leases can involve complex legal issues for landlords and tenants to negotiate and resolve.
Closings – Real estate transactions culminate in a closing, where parties execute and exchange documents that finalize the transaction and effect the transfer of real estate interests from the seller to the buyer. Closings must comply with Michigan law to affect a valid transfer of property ownership. Before closing, parties must also ensure a clear title so that buyers receive the legal interests they believe they have purchased.
Real Estate Developments – Constructing or renovating properties can involve various aspects of real estate law, including zoning and land use regulations, as well as building and safety codes.

Real Estate Disputes and Litigation

Because real estate can involve significant financial interests, legal issues and conflicts can lead to disputes or litigation between parties involved in a real estate matter. Common examples of real estate disputes that our firm represents clients in include:

Boundary Disputes – Neighboring property owners may have legal conflicts over boundary lines. Such conflicts can arise when neighbors construct accessory structures, fences, or landscaping on the wrong side of the perceived property line.
Conflicts Over Easements – Parties can have disputes over easements – rights to use another party’s property for specific purposes. Parties may dispute the existence of easements, especially when an easement has fallen into disuse. Parties may also seek constructive easements to recognize the use of property that has occurred for years or decades or to ensure the productive use of another parcel of property.
Breach of Contract Claims – Real estate disputes can arise from alleged violations of contracts, including purchase agreements, residential or commercial leases, or construction contracts. However, Michigan law can affect parties’ rights and obligations under contracts or afford various types of relief, including specific performance of real estate purchase contracts or leases.
Landlord-Tenant Disputes – Landlords and tenants may have legal conflicts arising from issues such as non-payment of rent, habitability problems, failure to conduct maintenance, or breaches of other lease provisions. Landlord-tenant disputes can escalate into eviction proceedings, where landlords seek to eject tenants from leased properties to regain possession after a tenant breaches the lease or after the lease has expired.
Construction and Development Disputes – Real estate projects often give rise to various legal disputes. For example, property owners or developers may have conflicts with local governments over zoning and land use regulations that might restrict an owner’s or developer’s proposed use or project. Owners and developers may also have contract claims against contractors or construction companies arising from project delays, payment disputes, or workmanship issues.

Title and Deed Issues

Problems with deeds and property titles can make it essential to understand applicable Michigan real estate laws. For example, state law allows parties to pursue quiet title actions to resolve ownership or boundary disputes or to remove clouds on property titles to facilitate transactions. Real estate transactions may also depend on the type of deed conveyed from sellers to buyers, as parties may choose between warranty deeds that promise good title or quitclaim deeds in which sellers convey whatever title (if any) they possess. Finally, Michigan law can also affect parties’ rights under title insurance policies.

Zoning, Land Use, and Local Ordinances

Real estate transactions can trigger various regulatory issues for property owners or developers, such as:

Zoning and Land Use Compliance – Zoning laws restrict how property owners may use their parcels. Zoning districts specifically permit or preclude uses such as residential development, commercial activities, or mixed-use developments. Understanding the applicable zoning rules can help parties decide whether to pursue various real estate transactions or development projects.
Variances or Special Use Permits – Property owners or developers may seek variances or special use permits when a proposed project does not fully comply with local zoning ordinances. A variance allows deviation from zoning requirements, such as building height, setback, or lot size. A special use permit authorizes land uses that are conditionally permitted in a zoning district, such as religious institutions, daycares, or gas stations. Obtaining these approvals often involves a public hearing and review by a zoning board or planning commission.
Subdivision/Development Approvals – Real estate developers who wish to construct residential subdivisions or commercial and mixed-use developments often require legal approval from local officials. Legal approval can divide larger tracts into parcels for single-family residences. Development approval can also involve other aspects, such as creating or rerouting public roads, expanding traffic infrastructure, extending utilities, or establishing other support services, including schools, hospitals, or fire and police stations.

Real Estate and Estate Planning

Real estate law often intersects with the estate planning process, as many individuals hold a significant portion of their wealth in real estate assets, such as primary residences, vacation homes, or investment properties. Our legal team comprises attorneys with significant experience in real estate and estate planning, enabling us to assist clients in managing and transferring their property interests to heirs or beneficiaries.

Real estate-focused estate planning may involve matters such as:

Transferring property after death, such as through wills, trusts, or Lady Bird deeds
Creating joint tenancies or tenancies by the entirety to facilitate automatic inheritances of real estate interests between family members
Handing real estate interests when undertaking Medicaid planning to allow individuals to qualify for long-term care benefits while continuing to live at home or to protect homes to pass on to loved ones

Comprehensive Property Law Expertise

Real estate-focused estate planning may involve matters such as:

Transferring property after death, such as through wills, trusts, or Lady Bird deeds
Creating joint tenancies or tenancies by the entirety to facilitate automatic inheritances of real estate interests between family members
Handing real estate interests when undertaking Medicaid planning to allow individuals to qualify for long-term care benefits while continuing to live at home or to protect homes to pass on to loved ones

Why Choose Our Michigan Real Estate Attorneys?

When you have a matter involving real estate law, hiring experienced legal counsel can help you protect your finances and interests. You should choose the Michigan real estate lawyers from Herbert Machnik Law Firm to help you understand your rights and obligations under the state’s real estate laws because:

Our legal team takes the time to understand your needs, concerns, and objectives to offer you tailored legal solutions. We recognize that a one-size-fits-all approach won’t protect your rights and interests as well.
Our attorneys have diverse experience, knowledge, and skills, enabling our firm to match you with the best attorney for your real estate matter.
We employ a collaborative approach to representing clients, which allows us to deliver cost-effective results tailored to your interests and goals.
Our firm strives to provide approachable and compassionate service. We make you the center of everything we do, and we respond to your communications promptly while keeping you updated on the progress of your case.

Contact Us Today for Experienced Guidance in Michigan Real Estate Law

When you have a real estate matter, a seasoned lawyer can help you understand how Michigan’s real estate laws may affect your rights or options. Contact Herbert Machnik Law Firm today for a confidential consultation with a real estate lawyer to assist with protecting your property or financial interests.

Frequently Asked Questions About Michigan Real Estate Law

Do I need a lawyer to buy a house in Michigan? While Michigan does not strictly require a lawyer for every closing, having a real estate attorney review your purchase agreement and title commitment is the best way to protect your net worth and avoid long-term legal liabilities.

What are the most common property law disputes in Michigan? Most disputes arise from undisclosed property defects, boundary line disagreements, and breaches of contract. We specialize in resolving these issues through both mediation and litigation.

How does Michigan law handle “Adverse Possession”? In Michigan, someone can claim ownership of land they don’t legally own if they have occupied it openly and notoriously for at least 15 years. If you are facing a boundary dispute, it is critical to act quickly to protect your property rights.