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.
Rafaeli, LLC v. Oakland County, 505 Mich. 429 (2020)Short formRafaeli, 505 Mich. 429Draft — 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]
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Related cases
- Homeowner wonBinding
Tyler v. Hennepin County
598 U.S. 631 · Decided 2023
Geraldine Tyler, 94 years old, owed about $15,000 in property taxes on her Minneapolis condo. The county seized it, sold it for $40,000, and kept all of it.
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Pung v. Isabella County
No. 25-95 (U.S. June 23, 2026) · Decided 2026
The Pung family owed about $2,242 in property taxes. Isabella County, Michigan, sold their home — assessed at $194,400 — for $76,008 at auction. Their representative argued they were owed the home's fair market value, not just the auction surplus.
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Hall v. Meisner
51 F.4th 185 · Decided 2022
Michigan homeowners lost their homes over tax debts much smaller than the homes' value; the county transferred the homes and the owners got nothing for their equity.
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