August 24, 2010, Introduced by Rep. Opsommer and referred to the Committee on Regulatory Reform.
A bill to prohibit certain covenants attaching to real
property; to prohibit the imposition of certain fees upon transfer
of that real property; and to provide for remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act, "capital recovery fee" means any
fee or charge imposed upon a parcel of residential real property,
for any period of time, that requires any subsequent seller or
transferor of that real property to pay a fee to the developer,
whether a flat fee or a fee based upon a percentage of the selling
price or other quantitative numerical figure or sum.
Sec. 2. The owner or developer, or both, of residential real
property shall not impose directly or indirectly, by means of a
covenant or contract, a capital recovery fee.
Sec. 3. (1) Any person aggrieved by the imposition of a
capital recovery fee, whether the original or subsequent transferee
or purchaser, may bring an action in a court of competent
jurisdiction for clearing the title and voiding the capital
recovery fee, including any other equitable relief requested and
granted by the court.
(2) In a successful action brought under subsection (1), the
court may award costs of bringing and completing the action and
actual reasonable attorney fees.