SENATE BILL No. 1644

 

 

November 13, 2008, Introduced by Senator CLARKE and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending sections 3208 and 5714 (MCL 600.3208 and 600.5714),

 

section 5714 as amended by 2004 PA 105, and by adding section 3108.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3108. On commencing an action under this chapter to

 

foreclose a mortgage of residential rental property, the plaintiff

 

shall give notice of the action to the tenants of the property by

 

ordinary mail.

 

     Sec. 3208. Notice that the a mortgage will be foreclosed under

 

this chapter by a sale of the mortgaged premises, or some part of

 

them, shall be given by publishing the same notice for 4 successive

 

weeks at least once in each week , in a newspaper published in the

 


county where the premises included in the mortgage and intended to

 

be sold, or some part of them, are situated. If no a newspaper is

 

not published in the county, the notice shall be published in a

 

newspaper published in an adjacent county. In every case within

 

Within 15 days after the first publication of the notice, a true

 

copy shall be posted in a conspicuous place upon any part of the

 

premises described in the notice.

 

     (2) If the mortgaged premises includes residential rental

 

property, a true copy of the notice published under this section

 

shall be provided to the tenants of the property by ordinary mail

 

within 15 days after the first publication of the notice.

 

     Sec. 5714. (1) A person entitled to premises may recover

 

possession of the premises by summary proceedings in the following

 

circumstances:

 

     (a) When a person holds over premises after failing or

 

refusing to pay rent due under the lease or agreement by which the

 

person holds the premises within 7 days from the service of a

 

written demand for possession for nonpayment of the rent due. For

 

the purpose of this subdivision, rent due does not include any

 

accelerated indebtedness by reason of a breach of the lease under

 

which the premises are held.

 

     (b) When a person holds over premises for 24 hours following

 

service of a written demand for possession for termination of the

 

lease pursuant to a clause in the lease providing for termination

 

because a tenant, a member of the tenant's household, or other

 

person under the tenant's control has unlawfully manufactured,

 

delivered, possessed with intent to deliver, or possessed a

 


controlled substance on the leased premises. This subdivision

 

applies only if a formal police report has been filed by the

 

landlord alleging that the person has unlawfully manufactured,

 

delivered, possessed with intent to deliver, or possessed a

 

controlled substance on the leased premises. For purposes of this

 

subdivision, "controlled substance" means a substance or a

 

counterfeit substance classified in schedule 1, 2, or 3 pursuant to

 

sections 7211 to 7216 of the public health code, 1978 PA 368, MCL

 

333.7211 to 333.7216.

 

     (c) When a person holds over premises in 1 or more of the

 

following circumstances:

 

     (i) After termination of the lease, pursuant to a power to

 

terminate provided in the lease or implied by law.

 

     (ii) After the term for which the premises are demised to the

 

person or to the person under whom he or she holds.

 

     (iii) After the termination of the person's estate by a notice

 

to quit as provided by section 34 of 1846 RS 66, MCL 554.134.

 

     (d) When the person in possession willfully or negligently

 

causes a serious and continuing health hazard to exist on the

 

premises, or causes extensive and continuing physical injury to the

 

premises, which was discovered or should reasonably have been

 

discovered by the party seeking possession not earlier than 90 days

 

before the institution of proceedings under this chapter and when

 

the person in possession neglects or refuses for 7 days after

 

service of a demand for possession of the premises to deliver up

 

possession of the premises or to substantially restore or repair

 

the premises.

 


     (e) When a person takes possession of premises by means of a

 

forcible entry, holds possession of premises by force after a

 

peaceable entry, or comes into possession of premises by trespass

 

without color of title or other possessory interest.

 

     (f) When a person the owner continues in possession of

 

premises sold by virtue of a mortgage or execution, after the time

 

limited by law for redemption of the premises.

 

     (g) When a tenant under a lease, whether written or oral,

 

continues in possession of premises sold by virtue of a mortgage

 

foreclosure for 90 days after service of a written demand for

 

possession by the purchaser at the sale.

 

     (h) (g) When a person continues in possession of premises sold

 

and conveyed by a personal representative under license from the

 

probate court or under authority in the will.

 

     (2) A tenant or occupant of housing operated by a city,

 

village, township, or other unit of local government, as provided

 

in 1933 (Ex Sess) PA 18, MCL 125.651 to 125.709c, is not considered

 

to be holding over under subsection (1)(b) or (c) unless the

 

tenancy or agreement has been terminated for just cause, as

 

provided by lawful rules of the local housing commission or by law.

 

     (3) A tenant of a mobile home park is not considered to be

 

holding over under subsection (1)(b) or (c) unless the tenancy or

 

lease agreement is terminated for just cause pursuant to chapter

 

57a.