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Timber Lake Drive Property Owners' Association v. Etta L Gribi
369520
Mich. Ct. App.
Sep 18, 2025
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Background

  • Birch Lake Subdivision (37 lots) subject to 1967 recorded deed restrictions: "residential purposes only" and "may not be used for business or commercial purposes."
  • Timber Lake Drive Property Owners’ Association (voluntary HOA) recorded a Marketable Record Title Act notice in July 2022 to extend the restrictions.
  • Owner Etta Gribi moved to assisted living in Oct 2022 and in June–July 2023 listed her home for rent; she executed a nine‑month lease (Aug 1, 2023–Apr 30, 2024) at $2,400/month to offset assisted‑living costs.
  • The Association notified Gribi that any renting for monetary consideration is a commercial use and demanded cessation; Gribi claimed long‑term rental for private residential use is permitted and alternatively contended the Association had waived enforcement by permitting prior short‑term rentals.
  • Trial court granted summary disposition for the Association under MCR 2.116(C)(10), held that any rental (short or long term) is a commercial use violating the covenant, found no waiver, and permitted the current tenant to remain until lease end (Apr 30, 2024).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether long‑term residential rentals constitute "business or commercial" use under the covenant Rentals are commercial regardless of length; covenant prohibits any commercial use Long‑term rental for private residential purposes is still a residential use and thus allowed Held: Any rental for monetary consideration (short or long term) is a commercial use and violates the covenant
Whether the Association waived enforcement by acquiescing to prior short‑term rentals No waiver; prior sporadic short‑term rentals were limited and not comparable; Association promptly objected to proposed rentals Yes; prior unchallenged short‑term rentals show acquiescence, preventing enforcement against Gribi Held: No waiver—the long‑term rental is a more serious, continuous violation and the Association did not lose the right to enforce

Key Cases Cited

  • Bloomfield Estates Improvement Ass’n, Inc v City of Birmingham, 479 Mich 206 (deed restrictions are contracts and are enforceable as written)
  • Terrien v Zwit, 467 Mich 56 (common and legal definitions of "commercial"/"business" and that commercial use includes profit‑seeking activity)
  • Thiel v Goyings, 504 Mich 484 (requirements for interpreting restrictions; read restrictions as a whole)
  • El‑Khalil v Oakwood Healthcare, Inc, 504 Mich 152 (standard of review for summary disposition)
  • Eager v Peasley, 322 Mich App 174 (short‑term rental is a commercial use even if residential in nature)
  • Aldrich v Sugar Springs Prop Owners’ Ass’n, 345 Mich App 181 (applies Eager to enforce residential‑use restrictions against short‑term rentals)
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Case Details

Case Name: Timber Lake Drive Property Owners' Association v. Etta L Gribi
Court Name: Michigan Court of Appeals
Date Published: Sep 18, 2025
Citation: 369520
Docket Number: 369520
Court Abbreviation: Mich. Ct. App.