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Commercial Lease Disputes in Michigan

What are the most common triggers for a commercial lease dispute?

The most frequent issues are nonpayment of rent, disputes over who's responsible for repairs and maintenance, often turning on how the lease defines common area versus tenant-controlled space, early termination or holdover disputes, and disagreements over whether a tenant properly exercised an option to renew.

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Can a commercial landlord change the locks on a defaulting tenant in Michigan?

No. Michigan law does not allow self-help lockouts for commercial tenants any more than for residential ones. A landlord must go through formal eviction proceedings, summary proceedings, in district court even for commercial nonpayment, and an improper lockout can expose the landlord to damages.

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What does a personal guaranty in a commercial lease actually mean for the guarantor?

A personal guaranty typically makes the individual signing it personally liable for the business's lease obligations even if the business itself can't pay or dissolves, and many guaranties are drafted to survive lease amendments or extensions unless the guarantor specifically negotiates a cap or sunset provision.

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What should a business do before signing a commercial lease to avoid disputes later?

Have an attorney review the use clause, assignment and subletting restrictions, repair and maintenance allocation, and any personal guaranty language before signing. Most commercial lease disputes trace back to ambiguous or one-sided language that could have been negotiated before the lease was executed, not after a problem arises.

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