Mich. Comp. Laws § § 125.535
Receiver; appointment, termination; purpose; powers; expenses.
Operative Text
Sec. 135. (1) When a suit has been brought to enforce this act against the owner the court may appoint a receiver of the premises. (2) When the court finds that there are adequate grounds for the appointment of a receiver, it shall appoint the municipality or a proper local agency or officer, or any competent person, as receiver. In the discretion of the court no bond need be required. The receivership shall terminate at the discretion of the court. (3) The purpose of a receivership shall be to repair, renovate and rehabilitate the premises as needed to make the building comply with the provisions of this act, and where ordered by the court, to remove a building. The receiver shall promptly comply with the charge upon him in his official capacity and restore the premises to a safe, decent and sanitary condition, or remove the building. (4) Subject to the control of the court the receiver shall have full and complete powers necessary to make the building comply with the provisions of this act. He may collect rents, and other revenue, hold them against the claim of prior assignees of such rents, and other revenue, and apply them to the expenses of making the building comply with the provisions of this act. He may manage and let rental units, issue receivership certificates, contract for all construction and rehabilitation as needed to make the building comply with the provisions of this act, and exercise other powers the court deems proper to the effective administration of the receivership. (5) When expenses of the receivership are not otherwise provided for, the court may enter an order approving the expenses and providing that there shall be a lien on the real property for the payment thereof. The provisions of subsection (7) of section 134 as to the contents and filing of an order are applicable to the order herein provided for.
Under MCL § 125.401 et seq. § 125.535, when a court action is brought to enforce Michigan's housing code against a property owner, a court has the authority to appoint a receiver to take control of the premises. The receiver — which can be a municipality, a local agency, or a qualified individual — is charged with bringing the building into compliance with the law, which may include repairing, renovating, rehabilitating, or even removing the structure. The receivership lasts as long as the court determines is necessary, and any unpaid receivership expenses may become a lien on the property itself.
Plain English — not legal advice.
MCL § 125.401 et seq. § 125.535 gives courts broad authority to remove control of a property from an owner when housing code violations go unaddressed and enforcement litigation is initiated. A compliant operator generally maintains buildings in safe, decent, and sanitary condition so that court-ordered receivership never becomes a consideration. Owners facing an enforcement suit should be aware that a receiver can collect rents, enter contracts for rehabilitation work, and accumulate costs that attach as a lien against the real property.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
MCL § 125.401 et seq. § 125.535 establishes a legal mechanism that can result in a court-appointed receiver taking over a building when an owner fails to meet housing code standards. If a receivership is in place, tenants continue to occupy their units while the receiver works to restore the premises to a safe, decent, and sanitary condition. Tenants who believe their building has serious code violations may wish to contact their local municipality or a tenant-rights organization to learn about available enforcement pathways, including whether a receivership action may be appropriate.
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.
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Rules and statutes that cite this regulation