Mich. Comp. Laws § § 37.1506
Prohibited representations.
Operative Text
Sec. 506. A person shall not represent, for the purpose of inducing a real estate transaction from which he or she may benefit financially or otherwise, that a change has occurred or will or may occur in the composition with respect to persons with disabilities 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 § 37.1506 prohibits a form of real estate manipulation sometimes called 'blockbusting' or 'panic peddling' as it relates to disability status. Specifically, the law bars anyone from making representations—whether true or false—about changes in the disability composition of a neighborhood's residents in order to induce a real estate transaction that benefits the speaker. The provision also forbids linking any such claimed demographic shift to predictions of falling property values, rising crime, or declining school quality.
Plain English — not legal advice.
Property owners, managers, and their agents operating under Michigan law must ensure that their marketing, sales, and leasing communications never invoke the disability status of current or prospective residents to motivate a transaction, as prohibited by MCL § 37.1506. Compliant operators train staff and third-party brokers to avoid any statements—even framed as neutral observations—that connect neighborhood disability composition to property values, safety, or school quality. Maintaining clear written policies against such representations is a common practice among operators seeking to demonstrate good-faith compliance with the Michigan Civil Rights Act.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
MCL § 37.1506 gives tenants and prospective buyers protection against being manipulated through disability-based scare tactics designed to pressure them into a real estate transaction. If a landlord, seller, or agent makes statements suggesting that the presence of people with disabilities in a neighborhood will lower property values or increase crime, that conduct may constitute a violation of the Michigan Civil Rights Act § 37.1101 et seq. Individuals who believe they have experienced such conduct can explore options such as filing a complaint with the Michigan Department of Civil Rights or consulting a tenant-rights organization familiar with fair housing law.
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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