In a deed, a grantee may agree to do something or refrain from doing certain acts. This agreement will become a binding contract between the grantor and the grantee. An example would be an agreement to maintain fences on the property or that the property will only be used for residential purposes. This kind of covenant is binding, not only between the grantor and the grantee, but also runs with the land. This means that anyone acquiring the land from the grantee is also bound by the covenant of the grantee. A covenant that provides that the grantee will refrain from certain conduct is called a restrictive or protective covenant. For example, there may be a covenant that no mobile home shall be placed on the property.
A restrictive or protective covenant may limit the kind of structure that can be placed on the property and may also restrict the use that can be made of the land. For example, when a tract of land is developed for individual lots and homes to be built, it is common to use the same restrictive covenants in all of the deeds in order to cause uniform restrictions and patterns on the property. For example, the developer may provide that no home may be built under a certain number of square feet. Any person acquiring a lot within the tract will be bound by the restrictions if they are placed in the deed or a prior recorded deed. Also, these restrictive covenants may be placed in a document at the outset of the development entitled "Restrictive Covenants," and list all the restrictive covenants that will apply to the tracts of land being developed. Any subsequent deed can then refer back to the book and page number where these restrictive covenants are recorded. Any person owning one of the lots in the tract may bring suit against another lot owner to enforce the restrictive covenants. However, restrictive covenants may be abandoned or not enforceable by estoppel if the restrictive covenants are violated openly for a sufficient period of time in order for a Court to declare that the restriction has been abandoned.
Restrictive Covenants For Independent Contractor In Michigan
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A Michigan independent contractor agreement establishes a working arrangement wherein an independent contractor is hired to perform a service for a client. The document should contain all the terms and conditions necessary to protect both parties and create a mutual understanding of the business relationship.
Non-Competitive Activity at New Employer: One of the most straightforward ways to overcome a noncompete is by ensuring that your new role with a different employer is in a non-competitive capacity. If you're not engaging in activities that directly compete with your former employer's business, you may be in the clear.
Michigan courts will enforce noncompetes that are “reasonable.” Just what is reasonable is a matter of balancing the employer's business interest against the right of the employee to work and earn a living in his or her trade.
Michigan courts will enforce noncompetes that are “reasonable.” Just what is reasonable is a matter of balancing the employer's business interest against the right of the employee to work and earn a living in his or her trade.
Act 234 of 2022 AN ACT to prohibit the recording of deeds or other instruments relating to real property that contain certain restrictive covenants or conditions; to make such restrictions unenforceable; and to provide remedies with respect to those instruments.
Some of the most common restrictive covenants include: Alterations and extensions to the building. Changes to the use of a property, for example, converting a building into flats or turning a house into business premises. Rent and lease restrictions. Limitations on pets. Limitations on home colour.
Many Michigan businesses require their employees to sign non-compete agreements. Although many people assume these types of agreements are not enforceable, the fact is that non-compete agreements may be enforceable under Michigan so long as certain requirements are met.
The board of directors of a Michigan homeowners association has a duty to enforce the various regulations contained in the restrictive covenants, declaration or deed restrictions as written, subject to limited exceptions.
In order to enforce a restrictive covenant, an employer must demonstrate that the clause protects one of its legitimate business interests. Secondly, the employer must show that the clause is reasonable, and it only goes so far as is necessary protect a legitimate business interest of the employer.
