January 2023

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

Michigan Court of Appeals Rules MCL 566.132 No Longer Permits Equitable Claims for Real Estate Commi

By Brandan A. Hallaq, Hirzel Law

The statute of frauds, specifically MCL 566.132, requires certain contracts to be in writing in order to be enforceable. One such type of contract is for the payment of a commission for the sale of real estate. On March 17, 2020, the Michigan Legislature amended MCL 566.132 to include a new subsection stating, “(3) A person shall 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 is in writing signed by the party to be charged.”

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The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.