Recap of Top Issues in 2024—NAR Settlement, Statewide Short-Term Rental Regulation Act, and Expansion of Point-of-Transfer Septic Inspections in Northwest Michigan
As we close out 2024, let’s take a look back at three of the top real estate issues in 2024—one each at the national, state, and local levels—and what to expect regarding these issues in 2025.
1. NAR Settlement
The biggest issue in the real estate issue in 2024 was the NAR Settlement of the Sitzer/Burnett case. NAR’s proposed settlement was originally announced on Friday, March 15th. In the March 25th GAD Top 3 we provided coverage on what was known at the time, including the launch of the facts.realtor as well as some breakdowns and analysis on the proposed settlement. The terms of the NAR settlement prompted NAR’s successful advocacy to the Department of Veterans Affairs to revise its policies to allow veterans utilizing the VA home loan benefits to compensate their professional representative directly (June 17th GAD Top 3). NAR also successfully advocated to the Federal Housing Finance Agency, Federal Housing Authority, Fannie Mae, and Freddie Mac the continued custom of excluding seller’s payment of commissions for buyer’s agents from the limits on Interested Party Contributions (covered in the April 22nd GAD Top 3 and July 15th GAD Top 3).
On June 20th Michigan REALTORS® held a live stream event - The Conversation: Focus on the Future - that went over practice changes resulting from the NAR settlement agreement, the pending settlement in relation to Michigan laws, and where things stood with the U.S. Department of Justice (summary of the event in the June 24th GAD Top 3). On August 9th Michigan REALTORS® released a Letter of the Law video covering the real estate practice changes that would be going into effect on August 17th as well as releasing new Michigan REALTORS® forms (August 19th GAD Top 3). These Michigan REALTORS® forms remain available on the Michigan REALTORS® website and through the Aspire North REALTORS® Member Info Hub.
With the final approval of the NAR Settlement in the Sitzer/Burnett case on November 26th the practice changes implemented starting on August 17th will remain unchanged and in place. Check out the December 9th GAD Top 3 for a great summary from Miami REALTORS® of what this settlement approval means as we move forward now and into 2025.
2. Statewide Short-Term Rental Regulation Act
Discussion of statewide short-term rental regulation continued throughout 2024 with the introduction on February 13th of the Short-Term Regulation Act Bill package (Michigan House Bills 5437 to 5445) with the primary which were all tie-barred to House Bill (HB) 5438 which means HB 5438 had to be enacted for the other bills to take effect. The potential passing of the Short-Term Rental Regulation Act led some local governments to take action to bring their policies into compliance with the Act, including Garfield Township (July 22nd GAD Top 3). Other Northwestern Michigan communities that altered their short-term rental policies in 2025 included: the Village of Lake Ann (March 18th GAD Top 3) and the Township of Selma (May 28th GAD Top 3). For a full list of short-term rental policies in the six-county (Antrim, Benzie, Grand Traverse, Kalkaska, Leelanau, and Wexford) region check out the Aspire North Regional Short-Term Rental Policies Guide.
Ultimately, HB 5438 died in the committee in which it was introduced. However, it is likely that the Short-Term Rental Regulation Act will be the starting point for consideration of statewide short-term rental regulation in 2025. Check out the April 29th GAD Top 3 and November 18th GAD Top 3 for a summary of the Short-Term Rental Regulation Act bill package. A short-term rental regulation model that may also be considered in 2025 is Wisconsin’s Right to Rent law for short-term rentals (January 15th GAD Top 3).
3. Expansion of Point-of-Transfer Septic Inspections in Northwest Michigan
Septic was a top real estate issue in our region in 2023 with the enactment of the Benzie-Leelanau District Health Department Sanitary Code on January 27th, 2023. In the absence of a statewide septic code (summary of the Statewide Septic Code Bills in the January 15th GAD Top 3 and the November 18th GAD Top 3) local municipalities enacted their own septic ordinance policies in 2024. Starting with Elk Rapids Township’s Septic Inspection and Property Transfer Ordinance which went into effect on March 11th, 2024 (May 6th GAD Top 3), while Grand Traverse County drafted their own point-of-transfer septic regulations which will likely be under consideration in January 2025 (December 9th GAD Top 3).
Although no statewide septic code occurred in 2024, Michigan did launch a new septic replacement loan program in 2024 through a partnership between the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and Michigan Saves to provide low-interest financing to Michigan homeowners for the replacement of failing or near-failing septic systems with loans ranging from $1,000 to $50,000 per project (June 10th GAD Top 3).
In 2025 we will likely see a new statewide septic code introduced in the Michigan state legislature in addition to Grand Traverse County enacting a county-wide septic code joining Benzie, Kalkaska, and Leelanau County in requiring point-of-transfer septic regulations. To view all septic policies in the 6 county region (Antrim, Benzie, Grand Traverse, Kalkaska, Leelanau, and Wexford) check out the Aspire North REALTORS® Local and State Sewer, Septic, and Well Information webpage.
