A developer purchases a parcel along Lake Huron in Iosco County, Michigan, and plans to install a seawall and place riprap along the shoreline to prevent erosion. The developer's attorney advises that because the developer holds fee simple title to the upland property, no state permits are required. A knowledgeable Michigan real estate agent reviewing this situation would recognize that the attorney's advice is incorrect because:
Correct Answer
D) EGLE permit requirements under NREPA apply to shoreline construction on the Great Lakes regardless of upland fee simple ownership, and the Public Trust Doctrine limits what private owners may do below the ordinary high-water mark
The attorney's advice is incorrect because Michigan's NREPA (Act 451 of 1994) — specifically Part 323 (Shorelands Protection and Management) and Part 325 (Great Lakes Submerged Lands) — requires EGLE permits for construction, seawalls, and riprap placement along the Great Lakes shoreline. Additionally, the Public Trust Doctrine means that the area below the ordinary high-water mark of the Great Lakes is held in trust by the state for the public, and private landowners cannot freely alter this zone simply by virtue of their upland fee simple ownership. Fee simple title to upland property does not override the state's environmental permitting authority or the Public Trust Doctrine's protections at the water's edge.
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Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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