Additional State Topics – Michigan Real Estate

Vocabulary flashcards summarizing key Michigan real-estate statutes, definitions, and procedures from the Additional State Topics lecture.

Elliott-Larsen Civil Rights Act

Michigan statute (PA 453 of 1976) that rewrote the 1968 Fair Housing Act and prohibits discrimination in employment, public accommodations, education, and housing based on protected classes such as race, color, religion, sex, age, marital status, height, weight, familial status, and arrest record.

Persons with Disabilities Civil Rights Act

1976 Michigan law that bans discrimination against individuals with physical or mental disabilities in housing, employment, public accommodations, and education.

Michigan Civil Rights Commission

State agency created by the 1963 constitution to investigate, conciliate, and enforce Michigan’s civil-rights statutes, including Elliott-Larsen and the Persons with Disabilities Civil Rights Act.

Michigan State Housing Development Authority (MSHDA)

1966 agency that finances and promotes safe, decent, affordable housing through loans funded by tax-exempt bonds rather than state taxes.

Protected Classes (Michigan-Specific)

In addition to federal classes, Michigan adds age, marital status, height, weight, and arrest record (age and marital status apply to housing).

Blockbusting

Illegal practice of inducing owners to sell or rent by suggesting that people of a protected class will soon move into the neighborhood.

Illegal Restriction

Deed or covenant that limits property use or occupancy based on protected-class status; unenforceable under Michigan law.

Covered Multifamily Dwelling

Building with four or more units and at least one elevator, or ground-floor units in other 4-plus-unit buildings, subject to disability-access rules.

Reasonable Accommodation

Change in rules, services, or policies that enables a person with a disability to enjoy equal housing opportunity.

Reasonable Modification

Physical alteration (e.g., widening doorways) made at a disabled person’s expense to afford full enjoyment of a dwelling.

Security Deposit Act (Landlord Tenant Relationships Act)

PA 348 of 1972 regulating collection, holding, use, and return of security deposits in Michigan residential leases.

Security Deposit

Up to 1.5 times monthly rent collected in advance to cover unpaid rent or damage beyond normal wear; cannot be used for routine cleaning.

Inventory Checklist

Document completed at move-in (tenant gets 2 copies; 7 days to return 1) and at move-out to record unit condition for deposit purposes.

Notice of Damages

Itemized list a landlord must mail within 30 days of move-out to claim any part of the security deposit; tenant has 7 days to object.

Forfeiture of Deposit

Tenant loses right to deposit if no forwarding address within 4 days, no response to damage list within 7 days, or amount equals past-due rent.

Actual Eviction

Court-ordered removal of a tenant through legal process (summary proceedings) for causes such as nonpayment or lease violations.

Self-Help Eviction

Illegal act of a landlord using force, lockouts, or utility shutoffs to remove a tenant without a court order.

Notice to Vacate

Written document stating address, reason for eviction, timeframe to cure, and landlord’s signature; served before filing eviction suit.

Order of Eviction

Court directive authorizing an officer to physically remove tenant and possessions after an eviction judgment.

Domestic Violence Early Termination

PA 199 of 2010 lets tenants threatened by domestic violence, sexual assault, or stalking end a lease early upon supplying a protection or police report.

Truth in Renting Act

PA 454 of 1978 requiring residential leases to contain landlord’s name/address and mandated consumer-rights statement; violations must be corrected in 20 days or incur fines.

Property Manager

General agent hired under a written management agreement to market, maintain, and supervise real property on behalf of the owner.

Michigan Transfer Tax

Combined state ($3.75) and county ($0.55) levy of $4.30 per $500 (or fraction) of sale price, usually paid by seller when recording deed.

Transfer Tax Exemption

No tax due when consideration is under $100, family transfer for love/affection, deed merely changes form of ownership, or deed is court-ordered (e.g., foreclosure).

Land Division Act

PA 299 of 1967 governing plat approval to ensure orderly land layout, adequate drainage, streets, surveys, and accurate legal descriptions.

Private Road

Right-of-way not built or maintained by a governmental unit that serves more than one parcel; sellers must disclose maintenance responsibilities.

Michigan Right to Farm Act

PA 93 of 1981 shielding farms that follow accepted agricultural practices from nuisance lawsuits; disclosure required on seller’s disclosure statement.

Michigan Condominium Act

PA 59 of 1978 establishing legal framework for condominium creation, ownership, taxation, and disclosure to buyers.

Condominium

Real estate with separate ownership of individual units and undivided interest in common elements.

Master Deed

Recorded document (enabling declaration) that defines a condominium project’s legal description, common-element rights, and unit value percentages.

Bylaws (Condominium)

Rules governing administration of a condo association, board powers, and owners’ obligations.

Buyer Rescission Period (New Condo)

Purchaser of a newly built Michigan condo may cancel until the 9th business day after receiving required documents.

Land Contract

Installment sale where buyer makes payments to seller but receives deed/title only after all (or stated portion of) payments are made.

Dodd-Frank / TRID Rule

Federal regulations integrating TILA and RESPA disclosures (Loan Estimate & Closing Disclosure) for most consumer mortgages; generally excluded for land contracts on vacant, investment, or commercial property.

Mortgage Loan Originator (MLO)

Person who, for compensation, takes a residential mortgage application or offers/negotiate loan terms; must be licensed or registered.

Exempt Land Contract (Seller Financing)

Owner-financed sale of 1 property per year, or fewer than 3 in 12 months with fixed-rate, no balloon, and seller’s good-faith ability-to-repay assessment—exempt from MLO licensing.

Reasonable Modifications – Accessibility Features

Accessible entrance, common areas, 32-inch-wide doors, reachable switches/outlets, and accessible ground-floor units in walk-ups, as required for covered multifamily dwellings.

Illegal Blockbusting or Steering Profits

Monies gained through discriminatory practices that the Michigan Civil Rights Commission can order paid to the injured party.

Civil Rights Complaint Deadline

Michigan discrimination complaints must be filed within 180 days of the alleged violation.