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