Home > Uncategorized > Real Estate Law Update: Proposed Michigan HB 4830 Would Allow Businesses to Represent Themselves at Landlord/Tenant Hearings

Real Estate Law Update: Proposed Michigan HB 4830 Would Allow Businesses to Represent Themselves at Landlord/Tenant Hearings

 

In order to limit liability, many real estate owners will form a Limited Liability Company to hold their investment property.  In order to enforce the LLC’s rights in court, the most common scenario being evicting a non paying tenant, Michigan law requires a business entity to have an attorney appear on the entity’s behalf.  Otherwise such individual would be practicing law on behalf of another, the LLC – this is deemed unauthorized practice of law.

However, some states have gone away with this requirement and carved out an exception. A House Bill proposed back on June 13th would allow an officer of a Corporation, or a member of a Limited Liability Company to appear in court under limited circumstances. See the text to this bill, at the link below:

http://www.legislature.mi.gov/(S(5aezevnneutdy1fhsnodqb55))/mileg.aspx?page=GetObject&objectname=2013-HB-4830

I understand the economic reasons for state legislatures to create such exceptions, but for reasons that I have mentioned in a previous blog post https://jeshualaukalegalnews.wordpress.com/2013/05/24/lessons-from-court-potential-pitfalls-in-managing-your-own-investment-real-estate/ I would always recommend retaining counsel, if you economically can do so. That being said, there are many real estate professionals who are more than competent in such arena.   However, the old saying goes “a person who is his own attorney has a fool for a client.”

The State Bar of Michigan Committee on Civil Procedure and Courts has taken a position opposing this Bill, see http://www.michbar.org/publicpolicy/positionpdfs/positionPDF1357.pdf

 

Do you have an interesting issue related to business or real estate? I’d love to hear about it.   

Email or call me. Email: Jeshua@dwlawpc.com / Ph: (616) 454-3883.

 

 

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