Jason Rose

The following disability-related laws apply to housing in Michigan:

Fair Housing Act: The federal Fair Housing Act (Fair Housing Amendments Act of 1988, which became effective March 12, 1989) prohibits sellers or people in the real estate industry from discriminating against people because of their disability or the disability of anyone associated with them. The laws also include accessibility design and construction requirements for multifamily housing.

Section 504 of the Rehabilitation Act of 1973: Section 504 prohibits discrimination based on disability in any housing, program or activity receiving federal financial assistance.

Americans with Disabilities Act: In most cases, the ADA does not apply to residential housing. Title III of the ADA covers public and common use areas at housing developments when these areas are open to the general public (such as a sales office) or when they are available for use by the general public (such as a community room that is rented to non-residents).

Michigan Persons with Disability Civil Rights Act: The Act defines the civil rights of persons with disabilities, prohibits discriminatory practices, policies, and customs in the exercise of those rights, and prescribes penalties and to provide remedies. It was enacted to allow the disabled the opportunity to obtain employment, housing, and other real estate and full and equal utilization of public accommodations, public services, and educational facilities without discrimination because of a disability is guaranteed by this act and is a civil right.

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To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Every real estate professional should already know that the Fair Housing Act makes it unlawful to discriminate in housing on the basis of sex. What many real estate professionals do not realize, however, is that that includes sexual harassment.

In recent years, the United States Department of Justice ("DOJ") has been looking more closely at sexual harassment in housing in its Fair Housing enforcement efforts. Women, particularly those who are poor, and with limited housing options, often have little recourse but to tolerate the humiliation and degradation of sexual harassment or risk having their families and themselves removed from their homes. The DOJ's enforcement program is aimed at landlords who create an untenable living environment by demanding sexual favors from tenants or by creating a sexually hostile environment for them. By this, the DOJ is seeking both to obtain relief (usually large monetary fines) for tenants who have been treated unfairly by a landlord because of sex and also deter other potential abusers by making it clear that they cannot continue their conduct without facing repercussions.

In addition, pricing discrimination in mortgage lending may also adversely affect women, particularly minority women. This type of discrimination is unlawful under both the Fair Housing Act and Equal Credit Opportunity Act.

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To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.

Are there laws in the State of Michigan related to mold issues?

It might seem surprising, but the State of Michigan does not have laws that require anyone to cleanup, remove, or report mold in any indoor environment. Also, the State of Michigan does not have a program to address issues related to mold, other than to provide people basic information about mold clean-up. Moreover, the State of Michigan does not certify or license contractors for mold removal.

However, laws do exist that cover certain situations that involve indoor mold. The following is a list government agencies that may be able to provide guidance if your house or apartment has indoor mold.

Landlord and tenant relationships: If a tenant is renting an apartment or house, that person has the right to expect certain minimum standards referred to as "warranties of habitability" that provide minimum standards of decent, safe, sanitary housing specified in the state or local housing code. For more information on landlord-tenant relationships go to: http://www.tenant.net/Other_Areas/Michigan/index.html.

Fraud in mold remediation companies: If you believe you are a victim of fraudulent business practices from a company involved in mold remediation, contact: Michigan Attorney General's Office, Michigan Consumer Protection Division, P.O. Box 30213-7713, Lansing, MI 48909, (517) 373-1140

Legal issues related to new home construction and mold: If you have questions about laws regarding new housing construction and contractors actions related to mold, contact: Michigan Department of Labor & Economic Growth, Bureau of Commercial Services/Enforcement Division, P.O. Box 30018, Lansing MI 48909, (517) 241-9202

For more information on mold:

• Michigan Department of Community Health Toxics and Health hotline and website: 1-800-648-6942, www.michigan.gov/mdch-toxics
• Your local public health department, find it at http://www.malph.org/page.cfm/108/
• Centers for Disease Control: http://www.cdc.gov/mold/
• National Center for Housing and the Environment: http://www.stopmold.org/

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For more information about mold, we offer an online real estate con ed course named "Introduction To Mold And Mold Remediation For Real Estate Professionals." Please visit us at www.123ConEd.com for all of your Michigan real estate continuing education needs. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our online Michigan real estate con ed courses are designed to offer our students the most information, as quickly and economically as possible.

I was in the process of updating the online fair housing continuing education courses offered by my school (www.123ConEd.com), when I came across this recent Fair Housing Act case. Because Fair Housing is such an important topic, I thought that I'd post a summary of this case.

On January 18, 2007, the United States Department of Justice settled a fair housing retaliation case against the owners, operators and managers of Fairway Trails Apartments, an apartment complex located in Ypsilanti, Michigan. The case was brought under the Fair Housing Act against Nicole Morbach (property manager), Benchmark Management Corporation (management company), Benchmark Michigan Properties, Inc. (general partner), and Fairway Trails Limited, L.P. (owner of apartment complex).

The complaint alleged that the defendants retaliated against tenant Harry Tyus when they evicted him after he won a reasonable accommodation request against Fairway Trails Apartments. HUD’s investigation showed that Mr. Tyus requested a reasonable accommodation on his lease agreement to ensure timely rent payment. Mr. Tyus, who was disabled, asked the property manager if he could pay his rent on the third Wednesday of each month instead of the first day of each month. The change would have coincided with Mr. Tyus’ Social Security disability payments and would have allowed him to avoid paying the $50 late fee monthly.

After checking with the corporate office, the property manager turned down Mr. Tyus’ request. Mr. Tyus immediately sought help from the Fair Housing Center of Southeastern Michigan. Fairway Trails Apartments responded to a Center request for reasonable accommodation by stating, “doing so would result in extending a preference,” and denied the request.

In July 2004, when his rent was not paid on time Fairway Trails Apartments started the process to evict Mr. Tyus. Despite the rent and the late fee being paid on July 22, Fairway Trails Apartment continued the eviction process.

In October 2004, following a bench trial on the eviction proceeding in Washtenaw County Circuit Court, the trial judge ruled in favor of Mr. Tyus and agreed that he should be allowed the accommodation he requested. The judge also ruled that Fairway Trails Limited L.P. was not entitled to a late fee for the previous two months and that the pay date would be reset. The judge denied the eviction and allowed Mr. Tyus to stay in his apartment. Two days later, the defendants notified Mr. Tyus that they would not renew his lease.

Mr. Tyus filed a complaint with HUD on April 18, 2005. The Fair Housing Center of Southeastern Michigan assisted Mr. Tyus with his complaint. HUD investigated Mr. Tyus’ complaint, and on March 21, 2006, HUD issued a determination of reasonable cause. On April 7, 2006, Mr. Tyus elected to have the case resolved in federal court. The Department of Justice then filed a lawsuit on behalf of Harry Tyus.

Under the terms of the settlement, the defendants were required to pay Mr. Tyus $50,000, to attend fair housing training, and to comply with record-keeping and reporting provisions for three years.

It is important for all real estate professionals to remember that the Fair Housing Act prohibits retaliation against individuals when those individuals exercise their rights under the law. As evidenced by this case, real estate professionals can face severe fines and penalties as a result of violations of the Fair Housing Act.

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To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Here is a summary of a case that was recently decided by the Michigan Court of Appeals relating to the liability of real estate professionals for representations made during the purchase/sale of a home. Stout v. Christina Withrow, Carol Williams-Nakoneczny and Century 21 Real Estate 217, No. 271632, 2008 WL 400695 (Mich. Ct. App., decided Feb. 14, 2008).

Plaintiff Sandra Stout was looking to purchase a new home. To help with her search, she met with defendant Carol Williams-Nakoneczny (“Agent”), who was a licensed real estate agent with defendant Century 21 Real Estate 217. Agent showed plaintiff an old farmhouse in Millington, Michigan, which was owned by defendant Christina Withrow (“Seller”). Agent and Seller were friends. Agent listed Seller’s farmhouse previously, and when Agent contacted Seller regarding showing the house to plaintiff, Seller re-listed the house with her again.

Plaintiff executed a purchase agreement that contained a Property Inspection Clause in which plaintiff agreed to purchase the property “[a]s is, with no warranties expressed, written or implied by seller or realtor.” The same clause also included language recommending that plaintiff have the house inspected, but noted that “BUYER [plaintiff] waives a home inspection.” Plaintiff asserted during her deposition and at trial that when she asked Agent whether she needed to have a home inspection, Agent responded in the negative, advising her not to waste her money on a home inspection because she was friends with the owner of the house, the house was in “top-notch” condition, everything was new, and there had been previous inspections of the home.

Before the closing on plaintiff’s purchase of the farmhouse, Agent sought plaintiff’s signature on a Disclosure Regarding Real Estate Agency Relationship form. This agency disclosure form, which plaintiff signed, disclosed that defendant Agent was serving as the Seller’s agent and that Agent would “not be representing the buyer unless otherwise agreed in writing.” Plaintiff did not sign a buyer’s agency agreement with Agent, and plaintiff did not assert that she and defendant entered into a written agreement regarding this agent representing her.

At closing, plaintiff also signed a release that she examined the property and accepted it in its present condition. She also agreed to hold harmless defendant Century 21 Real Estate 217 (“Broker’) and its representatives, including regarding issues involving sewer, septic, well and plumbing. Plaintiff stated that she had read it, understood it and acted voluntarily. She also signed two Seller’s Disclosure Statements that stated: “The following are representations made solely by the Seller and are not the representations of the Seller’s Agent(s), if any.” Both Seller’s Disclosure Statements also advised prospective buyers: “BUYER SHOULD OBTAIN PROFESSIONAL ADVICE AND INSPECTIONS OF THE PROPERTY TO MORE FULLY DETERMINE THE CONDITION OF THE PROPERTY.” Plaintiff did not have the house inspected.

After plaintiff moved into the house, she discovered that there were problems with the septic system (e.g., sewage backed up into the bathtub and toilet). The toilet would not flush. If plaintiff plunged the toilet, more sewage backed up into the bathtub, etc. The conditions persisted until plaintiff moved out of the house for good.

Plaintiff filed suit against defendant Agent Williams-Nakoneczny, defendant Broker Century 21 Real Estate 217, and defendant Seller Withrow, claiming intentional misrepresentation, violation of the Michigan Consumer Protection Act, and negligence. The case went to trial on plaintiffs intentional misrepresentation claim. The jury determined that defendant Agent knowingly or recklessly made a false representation of material fact and that plaintiff relied upon the representation and incurred damages as a result. The jury returned a verdict for plaintiff in the amount of $120,659.32, plus costs and interest. Defendants appealed and the Michigan Court of Appeals affirmed the jury’s verdict.

The Michigan Court of Appeals agreed that defendant Agent Williams-Nakoneczny’s fraudulent conduct related to the condition of the property. And defendant Agent’s misrepresentations about the condition of the property helped to secure the release. The court also agreed that the plaintiff proved all of the elements of intentional or fraudulent misrepresentation: (1) the defendant made a material representation, (2) the representation was false, (3) when making the representation, the defendant knew that it was false or made it recklessly, without knowledge of its truth as a positive assertion, (4) the defendant made the representation with the intention that the plaintiff would act upon it, (5) the plaintiff acted in reliance on the representation, and (6) the plaintiff suffered damages

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Please visit us at www.123ConEd.com for all of your Michigan real estate continuing education needs. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our online Michigan real estate con ed courses are designed to offer our students the most information, as quickly and economically as possible.

Copyright © 123 ConEd LLC 2009. All rights reserved.