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Homeowner wonOther statePending attorney reviewTax sale surplus (excess proceeds)

Rafaeli, LLC v. Oakland County

Rafaeli, LLC v. Oakland County, 505 Mich. 429 (2020)

Court
Michigan Supreme Court
Decided
2020-07-17
Docket
156849

What happened

Oakland County foreclosed on a property over an $8.41 tax debt (with interest and fees, about $285), sold it for $24,500, and kept everything.

What the court decided

The Michigan Supreme Court held that keeping the surplus proceeds beyond the tax debt is an unconstitutional taking under Michigan's Constitution.

In the court's words

“defendants’ retention of those surplus proceeds is an unconstitutional taking without just compensation”

Why it may matter to you

A state court protected homeowners' equity three years before Tyler reached the same result nationwide.

Why it might not apply

Michigan constitutional law; Texas already returns excess proceeds through a claim process.

Most useful when

  • The county kept all the money from selling your property for a small tax debt

How to cite it

The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.

Full citationRafaeli, LLC v. Oakland County, 505 Mich. 429 (2020)Short formRafaeli, 505 Mich. 429

Draft — check it with free legal aid before you file or say it in court.

In Rafaeli, LLC v. Oakland County, 505 Mich. 429 (2020), the court held that a county that keeps tax-sale proceeds beyond the tax debt takes property without just compensation. Here, [say in one sentence what happened in your case]

Ask Techy about this case

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