Mich. Comp. Laws § § 37.2506
Real estate transactions; prohibited representations.
Operative Text
Sec. 506. A person shall not represent, for the purpose of inducing a real estate transaction from which the person may benefit financially, that a change has occurred or will or may occur in the composition with respect to religion, race, color, national origin, age, sex, sexual orientation, gender identity or expression, familial status, or marital status of the owners or occupants in the block, neighborhood, or area in which the real property is located, or represent that this change will or may result in the lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools in the block, neighborhood, or area in which the real property is located.
Michigan Civil Rights Act § 37.2506 prohibits anyone from making representations about demographic changes in a neighborhood—such as shifts in the religion, race, sex, or other protected characteristics of residents—when those representations are intended to financially benefit the speaker by prompting a real estate transaction. The law also bars claims that such demographic changes will cause property values to drop, crime to rise, or school quality to decline. This practice, historically known as 'blockbusting' or 'panic selling,' is treated as an unlawful discriminatory act under Michigan law.
Plain English — not legal advice.
Real estate professionals and property owners operating under MCL § 37.2506 are expected to avoid any sales or marketing communications that invoke demographic shifts in a neighborhood as a reason to buy or sell. Compliant operators do not suggest—directly or indirectly—that changes in the religious, racial, or other protected-class composition of an area will negatively affect property values, safety, or schools. Maintaining clear, fact-based communications about properties, free of appeals to neighborhood demographic change, reflects standard practice under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
MCL § 37.2506 gives individuals the right to be free from manipulative, fear-based representations about who lives in a neighborhood when someone stands to profit from a resulting real estate transaction. If a real estate agent, landlord, or other party makes such representations to pressure a housing decision, that conduct may constitute a violation of the Michigan Civil Rights Act. Affected individuals can explore options such as filing a complaint with the Michigan Department of Civil Rights or consulting a tenant-rights or fair-housing organization for guidance on available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
Rules and statutes that cite this regulation