M I C H I G a N Real Property Review
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MICHIGAN REAL PROPERTY REVIEW Published by the Real Property Law Section State Bar of Michigan Spring 2007 Vol. 34, No. 1 CONTENTS Chairperson’s Report ......................................................................................................5 by Patrick A. Karbowski Counting on Redivision Rights? ...................................................................................... 7 by David W. Charron Enhancing the Deal: Integrating Government Incentives Into Real Estate Transactions ........................................................................................18 by Grant W. Williams Forfeiture Road Map .................................................................................................... 31 by Jonathan T. Walton, Jr. and Laura S. Donnelly Deed Restrictions In Michigan ......................................................................................37 by William E. Hosler Legislation Affecting Real Property ...............................................................................50 by C. Leslie Banas Judicial Decisions Affecting Real Property ....................................................................54 by C. Leslie Banas Continuing Legal Education .........................................................................................60 by David E. Nykanen and Arlene R. Rubinstein MICHIGAN REAL PROPERTY REVIEW Published by the Real Property Law Section State Bar of Michigan Spring 2007 Vol. 34, No. 1 The Michigan Real Property Review is the official journal of the Real Property Law Section of the State Bar of Michigan. The Review is published quarterly and is a significant part of the Section’s program of publications, seminars, confer- ences, legislative liaison and other undertakings for the professional education and development of its members and the Bar. The Section encourages interested members of the Bar to contribute articles and other publishable material relating to real property law and of interest to the profession. Manuscripts are reviewed by attorneys experienced in the subject matter covered by each article. Readers are invited to submit articles, comments and correspondence to Lynda J. Oswald, Editor, University of Michigan Ross School of Business, 701 Tappan Street, Ann Arbor, Michigan 48109-1234 ([email protected]). The publication of articles and the editing thereof are at the discretion of the Publications Committee. A cumulative index of articles is printed annually in the Winter issue of the Review and is available on the Section website: www.michbar.org/realproperty/ Articles in the Review may be cited by reference to the volume number, abbreviated title of the publication, the appropriate page number and the year of publication as, for example, 14 Mich Real Prop Rev 35 (1987). Publications Committee, Real Property Law Section Patrick A. Karbowski, Chairperson, Bloomfield Hills Lynda J. Oswald, Editor of Review, Ann Arbor Lawrence R. Shoffner, Detroit and all Special Committee Publications Coordinators Copyright © 2007 Real Property Law Section of the State Bar of Michigan The views, opinions and conclusions expressed in the Michigan Real Property Review are those of only the respective authors and do not necessarily reflect the position or opinion of the State Bar of Michigan, the Real Property Law Section, the Michigan Real Property Review, its editor or the Publications Committee of the Section. The publication in the Review of articles, letters and other materials does not constitute and should not be construed to be an endorsement of any views, opinions or conclusions that may be expressed or implied. The Review is prepared and published as a part of the legal education activities of the Real Property Law Section, for the benefit of its members and the Bar. In publishing the Review, the Real Property Law Section does not purport to engage in or to render legal or professional services. If legal advice or services are desired or appropriate, an attorney should be consulted. The Michigan Real Property Review is published by the Real Property Law Section of the State Bar of Michigan. An annual subscription to the Review commences in September of each year and ends in August of the following year. Four issues are published each year. The subscription price is $45 annually, payable in advance. Orders for subscriptions should be sent, with the above-stated payment, to Michigan Real Property Review, Real Property Law Section, State Bar of Michigan, Michael Franck Building, 306 Townsend Street, Lansing, Michigan 48933-2083. Spring 2007 Published by the Real Property Law Section, State Bar of Michigan OFFICERS OF THE SECTION: CHAIRPERSON CHAIRPERSON-ELECT PATRICK A. KARBOWSKI LAWRENCE R. SHOFFNER 41000 Woodward Ave. 535 Griswold St. Stoneridge West Suite 1550 Bloomfield Hills, MI 48304-2949 Detroit, MI 48226-3601 VICE-CHAIRPERSON SECRETARY TREASURER C. LESLIE BANAS RONN S. NADIS JEROME P. PESICK 38500 Woodward Avenue 32255 Northwestern Highway 380 N. Woodward Suite 100 Suite 200 Suite 120 Bloomfield Hills, MI 48304 Farmington Hills, MI 48334 Birmingham, MI 48009 COUNCIL MEMBERS: William B. Acker 201 West Big Beaver Road, Suite 600 David E. Nykanen Troy, MI 48099-4300 Continuing Legal Education Committee Chairperson Dennis W. Hagerty 380 N. Old Woodward Ave., Suite 120 Representing Land Title Birmingham, MI 48009 Standards Committee 622 E. Grand River Patricia Paruch Howell, MI 48843 201 West Big Beaver Road, Suite 600 Troy, MI 48084-4300 Brian P. Henry 33 Bloomfield Hills Parkway, Suite 100 David E. Pierson Bloomfield Hills, MI 48304 1305 S. Washington Ave., Suite 102 Lansing, MI 48910 Joel D. Kellman 39577 Woodward Avenue, Suite 300 Ronald E. Reynolds Bloomfield Hills, MI 48304-2820 33493 W. 14 Mile Road, Suite 100 Farmington Hills, MI 48331 Mark P. Krysinski 27777 Franklin Road, Suite 2500 Catherine Kim Shierk Southfield, MI 48034-2337 40701 Woodward Avenue, Suite 235 Bloomfield Hills, MI 48304 Howard A. Lax 3910 Telegraph Road, Suite 200 Lynda J. Oswald Bloomfield Hills, MI 48302 Editor, Michigan Real Property Review Ross School of Business Gregg A. Nathanson University of Michigan 39395 West 12 Mile Road, Suite 200 701 Tappan Street Farmington Hills, MI 48331 Ann Arbor, MI 48109-1234 Spring 2007 EX-OFFICIO MEMBERS (PAST CHAIRPERSONS OF THE SECTION) G. Norman Gilmore* James R. Brown Grand Rapids Patrick J. Keating Detroit Stephen E. Dawson Bloomfield Hills Ralph Jossman* Thomas C. Simpson Maurice S. Binkow Bloomfield Hills Detroit Robert R. Nix II Allen Priestly* Detroit James W. Draper Lawrence D. McLaughlin Detroit Detroit Myron Weingarden* C. Robert Wartell* David S. Snyder Jack D. Shumate Southfield Bloomfield Hills William B. Dunn James N. Candler, Jr. Detroit Detroit Allen Schwartz Gail A. Anderson Detroit Lansing Stephen A. Bromberg Carol Ann Martinelli Bloomfield Hills Troy Richard E. Rabbideau Robert A. Berlow Detroit Bloomfield Hills Gary A. Taback Vicki R. Harding Southfield Detroit Peter A. Nathan Lawrence M. Dudek Las Vegas, NV Detroit Carl A. Hasselwander Mark F. Makower Rochester Hills Bloomfield Hills James M. Tervo David W. Charron San Francisco, CA Grand Rapids Nyal D. Deems Grand Rapids COMMISSIONER LIAISON W. Anthony Jenkins Detroit *Deceased Spring 2007 Page 5 CHAIRPERSON’S REPORT by Patrick A. Karbowski Although this is the Spring Issue of the Michigan with a full day seminar sponsored by the International Real Property Review, as I write this report there is still Council of Shopping Centers (“ICSC”), at the Townsend plenty of snow on the ground. Perhaps you too were Hotel in Birmingham, Michigan. The ICSC program perplexed by school closures in southeast Michigan due will have presentations by some of the top commercial to the extremely cold temperatures in the waning months and retail real estate lawyers in Michigan and Michigan of winter. I’ve heard of “snow days” but “cold days”–it real estate brokers, associate brokers, and salespersons just doesn’t sound right. Why, I can remember walking that attend the ICSC will receive continuing education to school in . (you’ve heard it, said it, before). I can credits. The Section will kick-off the all day seminar with assure you, however, that there have been no “cold its Groundbreakers Breakfast Roundtable program from days” for the Section and its very active Council and 8:00-9:30 a.m. Best of all, attendees at the Section’s committees. Groundbreakers program will have the option to stay for the entire ICSC program at no extra charge. There is no denying that winter left us with some very cold days as it relinquished the season to spring. It is not too early to register for our Summer Confer- Long before the onset of such cold weather, the Real ence, which, as you will see from the “Continuing Legal Property Law Section had already concocted the perfect Education” section of this issue of the Review, promises elixir: our Winter Conference at Disney’s Yacht & Beach to be an excellent program. Thank you to Melissa Collar Club Resort in Walt Disney World®, in Lake Buena Vista, and Larry Dudek for planning an excellent conference. Florida. The conference theme was “Resort Communities Please contact Arlene Rubinstein at (248) 644-7378 or and Second Homes: Following Your Clients ‘Up North’ [email protected], for more information on any of these and ‘Down South.’” As of this writing, the conference is great programs. only days away and all of our allotted rooms at the Yacht Club have been booked, and rooms at the adjacent Beach The Section’s ad hoc committee on Recording Issues