MI Ct of App Rules That Deed Restrictions Recorded Outside of the Chain of Title are Unenforceable

In Petersen Financial LLC v Twin Creeks LLC, issued November 22, 2016 (Docket No. 329019) (Published Opinion) the Michigan Court of Appeals held that deed restrictions that were not within the chain of title were not enforceable. In 2000, Twin Creeks, LLC owned the complete parcel of land that was located in the Twin Creek Development (hereinafter “Twin Creek”). In 2002, most of the lots in Twin Creek were conveyed to Carla Wolterstoff, with the remainder of the lots conveyed to her in 2004. In 2006, Twin Creeks, LLC recorded deed restrictions covering all of the lots in Twin Creeks, which had been executed in 2002. In 2011, Carla Wolterstoff lost all of the lots after the Kent County Treasurer foreclosed on an in unpaid tax lien. Peterson Financial, LLC purchased the lots from the Kent County Treasurer at the foreclosure sale in 2011.    Read the article……………..


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