It is a longstanding law in Michigan that owners of real property have the right to restrict the future use of their property, but there are legal limits to those restrictions.
It is common for developers of platted residential subdivisions to impose restrictions on what may or may not be built in subdivisions (Deed Restrictions). In most cases, Deed Restrictions are valid and enforceable. However, there are times when the Deed Restrictions are unclear, or even if they are clear, the homeowner’s association (HOA), which typically assumes the developer’s enforcement rights, interpret or enforce the Deed Restrictions beyond the developer’s original intent, which may exceed what the governing documents or law actually allow.
HOA boards are generally comprised of volunteer residents who live within the subdivision and are often granted absolute discretion in interpreting and enforcing the Deed Restrictions. Fortunately, the HOA board’s discretion is limited by the law even when board members do not know or understand the limits of the law. For this reason, it is important for homeowners to understand their rights when an HOA seeks to enforce Deed Restrictions.
For instance, the Michigan Court of Appeals asserted, “restrictions are a valuable property right, this right must be balanced against the equally well-settled principle that courts will not lightly restrict the free use of property.” Conlin v Upton, 313 Mich App 243, 256 (2015). Further, a court will not “aid one man to restrict another in the use to which he may put his property unless the right to such aid is clear”, and a “restriction must be expressly provided in the controlling documents”. Id. at 256. Finally, “[c]ourt’s review restrictive covenants with a special focus on determining the restrictor’s intent.” Theil v Goyings, 504 Mich 484, 496 (2019).
In practical terms, the law allows for a developer or HOA to impose restrictions on residential real property, such as limitations on the size or type of fence a homeowner may install, limit the number of stories a home may have, or restrict the color a homeowner may paint their garage door. However, those restrictions must be clearly written in the governing documents, such as the master deed or the subdivision documents. Deed Restrictions cannot be ambiguous, leaving the homeowner uncertain about what is permitted or may be enforceable. Furthermore, the HOA should uniformly and consistently enforce the Deed Restrictions according to the original intent of the developer, even when the composition of the HOA board changes from time to time.
As such, before purchasing property in a platted residential subdivision, a prospective homeowner should review and fully understand the applicable Deed Restrictions that may impact their plans for improvement projects, such as fencing, in-ground swimming pools, additions, and so forth. Further, if a homeowner receives a violation notice or a denial after submitting a request for approval to the HOA, it is important to clearly understand what provision is alleged to have been violated or the specific reason for the denial. Homeowners should also feel comfortable advocating for themselves and, when appropriate, respectfully questioning or challenging an HOA decision.
Ultimately, homeowners benefit from being informed and confident when questions arise about Deed Restrictions. When uncertainty or disputes occur, consulting with an experienced real estate attorney can provide clarity and ensure that HOA enforcement remains consistent with both the governing documents and the law.
