Detailed answer: rights when a co-owner holds a life tenancy and lives on the property
This answer explains how Michigan law treats someone who co-owns real property and holds a life estate (a life tenancy) while occupying the property. It covers what the life tenant may do, what non‑possessing co‑owners (remaindermen or co‑tenants) may do, and practical steps to protect your interests.
What is a life tenancy and who has what interest?
A life tenancy (life estate) gives a person (the life tenant) the right to possess and use real property for the duration of that person’s life. At the life tenant’s death, the property interest passes to the remainderman(s) or other future owners named in the deed or will. Michigan generally enforces life estates created by deed, will, or other legal instrument; the exact rights depend on the document that created the life estate.
Possession and occupancy
The life tenant has the legal right to occupy the property during the life tenancy. A non‑possessing co‑owner generally cannot force immediate removal of a lawfully created life tenant simply because the co‑owner also holds an ownership interest. However, a life tenant must exercise possession lawfully and cannot exclude the remainderman from inspecting title or otherwise enforcing rights.
Rent, ouster, and right to income
If the life tenant is in exclusive possession, Michigan law typically does not require the life tenant to pay rent to remaindermen for ordinary occupancy. A co‑owner seeking rent must usually show an ouster — a clear wrongful exclusion of the co‑owner from the property — or a written agreement that requires payment. If the life tenant rents out the property to third parties, the rent belongs to the life tenant unless the conveyance creating the life estate or agreement among owners allocates income differently.
Obligations: taxes, insurance, repairs, and maintenance
Who pays taxes, insurance, and for repairs depends on the circumstances and any written agreement. In most cases:
- The life tenant who occupies the property is generally expected to pay routine maintenance and property taxes attributable to the period of possession.
- Major improvements that substantially change the property’s capital value may require agreement with the remainderman or may be subject to accounting at the end of the life estate.
- If the life tenant fails to pay taxes or insurance, the remainderman may have remedies to protect the remainderman’s future interest (for example, paying the taxes and seeking reimbursement or lien remedies).
Prohibition on waste
A life tenant must not commit “waste” — actions that substantially damage or permanently diminish the value of the property. Waste can be voluntary (deliberate destruction), permissive (failure to repair leading to damage), or ameliorative (alterations that increase value but change character). A remainderman can sue to stop waste or seek damages if waste occurs.
Partition, accounting, and sale
If co‑owners cannot agree, Michigan law allows co‑owners to seek a partition of property. A partition action can divide property physically (partition in kind) or order a sale with proceeds divided among owners. Partition actions are governed by Michigan law and court rules; a relevant statute governing partition actions is available here: MCL 600.3301 (partition). In many cases, courts prefer partition in kind when feasible, but will order sale when partition in kind is impractical.
When a remainderman can act
A remainderman (or other co‑owner) who believes the life tenant has breached duties (committed waste, failed to pay taxes, or unlawfully excluded others) can:
- Request an accounting and documentation of income, expenses, and repairs.
- Seek injunctive relief to stop waste or unlawful acts affecting the property.
- File a partition action to force division or sale of the property.
- Pay necessary taxes or insurance to protect the remainder interest and then seek reimbursement or a lien in court.
Practical and procedural steps to protect your interest
If you are a co‑owner concerned about a life tenant occupying property, consider these steps:
- Review the deed and any documents that created the life estate. The deed language controls many rights.
- Document current possession, condition, leases, and any payments. Keep written records and photos.
- Attempt communication and negotiation. A written demand letter can sometimes resolve disputes.
- If you believe there is ouster, waste, or unpaid taxes, consult a Michigan attorney about filing for accounting, injunctive relief, or a partition action.
- Consider mediation or a buyout of the life interest if parties can agree; an appraisal will help determine a fair value.
Hypothetical examples
Example 1: A life tenant lives on the house and pays all utilities and ordinary repairs. They do not rent the house. The remainderman typically cannot demand rent, but may inspect records and enforce obligations like taxes and prevention of waste.
Example 2: A life tenant rents the entire property to a third party but refuses to account for rent or uses it for personal profit. The remainderman can demand an accounting and may sue for an equitable share of proceeds if the life tenant’s actions exceed the rights granted by the life estate.
Example 3: A life tenant abandons maintenance and allows the building to deteriorate. The remainderman may seek a court order to compel repairs or obtain damages for waste.
Key Michigan statute to review
For a court‑ordered division or sale of property shared among owners, see Michigan’s partition statute: MCL 600.3301.