Key Takeaways
- Michigan recognizes tenancy in common, joint tenancy, and tenancy by the entirety
- Joint tenancy requires the four unities (time, title, interest, possession) plus express language
- Tenancy by the entirety is available only to married couples with special creditor protection
- Michigan is an equitable distribution state for divorce (not community property)
- Homestead exemption provides property tax relief for primary residences
Michigan Property Rights and Ownership
Important: This content covers Michigan-specific property law. You should complete the National Real Estate Exam Prep first, as general property concepts are tested on the national portion.
Michigan follows common law principles for property ownership with some state-specific provisions.
Types of Property Ownership
Individual Ownership (Tenancy in Severalty)
One person holds title:
- Full control over property
- No survivorship rights (passes through estate)
- Most common for single individuals
Co-Ownership Types
| Type | Key Features |
|---|---|
| Tenancy in Common | Default, unequal shares allowed, no survivorship |
| Joint Tenancy | Requires four unities, right of survivorship |
| Tenancy by the Entirety | Married couples only, creditor protection |
Tenancy in Common
The default form of co-ownership:
- Owners may have unequal shares
- No right of survivorship
- Each owner can sell or transfer their share
- Deceased owner's share passes through their estate
Joint Tenancy
Requires the four unities:
- Time - All owners acquire at the same time
- Title - All owners acquire by the same deed
- Interest - All owners have equal shares
- Possession - All owners have equal right to possess
Plus requires express language creating the joint tenancy with right of survivorship.
Key Point: If one joint tenant sells, the joint tenancy is severed for that share.
Tenancy by the Entirety
Available only to married couples:
- Both spouses must join in any conveyance
- Creditor protection from individual debts
- Automatic right of survivorship
- Requires divorce or death to sever
Marital Property Rights
Equitable Distribution State
Michigan is an equitable distribution state (not community property):
| Feature | Michigan Rule |
|---|---|
| Division method | Equitable (fair, not necessarily equal) |
| Court discretion | Yes, based on factors |
| Separate property | Generally remains separate |
| Marital property | Subject to division |
Dower Rights
Michigan has abolished dower and curtesy rights. Instead, surviving spouses have:
- Elective share rights
- Homestead rights
- Statutory allowances
Homestead Exemption
Michigan offers a Principal Residence Exemption (PRE) for property taxes:
Principal Residence Exemption
| Feature | Detail |
|---|---|
| Eligibility | Primary residence, owner-occupied |
| Exemption | Exempts 18 mills of school operating taxes |
| Application | Must file affidavit |
| Partial exemption | May be available for qualifying situations |
Note: The PRE provides significant tax savings by exempting the property from school operating millage.
Easements and Encumbrances
Easements in Michigan
| Type | Description |
|---|---|
| Appurtenant | Benefits adjoining land, runs with land |
| In Gross | Benefits person or entity |
| Prescriptive | Created by adverse use (15 years in Michigan) |
| By Necessity | For landlocked parcels |
Prescriptive Easement Requirements
To establish a prescriptive easement in Michigan:
- 15 years of continuous use
- Use must be open and notorious
- Use must be adverse (without permission)
- Use must be continuous
Adverse Possession
Michigan allows adverse possession after 15 years of:
| Requirement | Description |
|---|---|
| Actual | Physical possession and use |
| Open | Visible to the owner |
| Notorious | Known to others |
| Exclusive | Claimant has exclusive control |
| Hostile | Without owner's permission |
| Continuous | Uninterrupted for 15 years |
What is required to create a joint tenancy in Michigan?
How long must continuous adverse use occur to establish a prescriptive easement in Michigan?