STATUTE OF FRAUDS; COMMISSION AGREEMENT                                             S.B. 253:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 253 (as reported without amendment)

Sponsor:  Senator Peter J. Lucido

Committee:  Judiciary and Public Safety

CONTENT

The bill would amend Revised Statutes (RS) 81 of 1846 to prohibit a person from bringing an action to enforce certain real estate agreements, promises, or contracts unless the agreement, promise, or contract was in writing signed by the party to be charged. 

Generally, RS 81 specifies that in certain cases an agreement, contract, or promise is void unless that agreement, contract, or promise, or a note or memorandum of the agreement, contract, or promise, is in writing and signed with an authorized signature by the party to be charged with the agreement, contract, or promise. One of those cases specified in RS 81 is an agreement, promise, or contract to pay a commission for or upon the sale of an interest in real estate.

Under the bill, a person could not bring an action to enforce an agreement, promise, or contract to pay a commission for or upon the sale of an interest in real estate against the owner or purchaser of the real estate unless the agreement, promise, or contract was in writing signed by the party to be charged. 

MCL 566.132                                                         Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  11-12-19                                            Fiscal Analyst:  Michael Siracuse

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.