Glossary
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This is an alphabetical list of terms used throughout this web site. The terms are either uncommon or have specific meanings in the context of landlord-tenant issues.
To skip down, click on the letter closest to the first letter of the word you are looking for:
Adjournment Postponement of a court appearance to another day.
Assignment An agreement in which the original tenant transfers lease rights and obligations to another person, the "assignee". This is similar to subletting, except that with a lease assignment, the assignee assumes all responsibility to the landlord for carrying out the terms of the original lease, and the original tenant is released from those obligations.
Basement 50% or more of the outside walls are above ground. It is a legal living space, unlike a cellar, which is illegal unless it meets certain standards.
Cellar 50% or more of the outside walls are below the ground. This is an illegal living space unless it meets all variance (see below).
Certificate of Occupancy/Compliance (C.O.) Landlord's certification, issued by local housing inspector, stating that the unit is fit and in compliance with the housing code.
Constructive Eviction The "eviction" of a tenant due to conditions, which are not the fault of the tenant, that make a tenant's home unlivable or unfit for occupancy. Under these conditions, the tenant may leave the premises and should not be liable for any future rent. See also eviction and lock-out law, below.
Consumer Protection Act (Act No. 331, 1976) A Michigan law that prohibits certain practices in rental agreements and other consumer transactions such as misrepresentation, deception, or causing confusion. You can sue to recover your damages or $250 for each violation, whichever is greater. This law is often used to fight illegal lease clauses. A copy of the Consumer Protection Act is available from the AATU or on the Michigan Legislature's web site.
Counterclaim A claim made by a defendant (someone who has been sued).
Covenant of Fitness State law says a landlord must agree that the rental property will be fit for the use intended by the tenants, and to keep the premises in reasonable repair and in compliance with all state and local health and safety laws. These obligations can't be altered unless the lease is for more than one year. Also known as the "warranty of habitability".
Default A court win due to no-show. When one party fails to appear in court or send an attorney, the court only hears the claims of the other party and rules on that undisputed evidence.
Escrow Money held by a third party. Banks can maintain escrow accounts, but they cost money. Placing withheld rent in a separate savings account can serve the same purpose.
Eviction Termination of the right to possession of a dwelling unit. The only legal eviction is through the court.
Fair Housing Amendments Act (1988) Federal law prohibiting discrimination against families with children and people with disabilities. Allows for very large money damages.
Housing Board of Appeals A City of Ann Arbor, mayor-appointed committee which hears landlord-tenant complaints about housing code violations. The Housing Board may grant or deny variances for particular housing code violations (see variance, below).
Housing Inspection Bureau Ann Arbor city department responsible for inspecting all rental housing in the city and seeing that units are in compliance with city and state codes. The office is located at 100 N. Fifth Ave. All files on rental properties are public.
Inventory Checklist A form to be given to tenants when they move in, which describes the condition of the unit. The tenant uses the form to record if there was any damage to the unit before he or she moved in. The form must be returned to the landlord within 7 days. When the tenant moves, the landlord will fill out another checklist showing all of the damage he or she claims was caused by the tenant. Under state law, landlords must provide inventory checklists when they are requiring a security deposit. Tenants have the right to a copy of the checklist that was completed when the previous tenants moved out.
Joint & Several Liability A clause in most leases which holds any tenant(s) who signed the lease responsible for the entire amount of the rent. If there is more than one tenant listed on the lease and one tenant moves out, the others can be held responsible by themselves or as a group for all of the rent.
Judgment The court's decision.
Liquidated Damages Money to be paid if a contract is breached. The amount is roughly equal to the actual loss or damages caused by breaking the contract, including the cost of lost or damaged property and time spent dealing with the problem. A lease can include liquidated damages to compensate when the lease is broken, but not to punish the person who broke the lease. If the liquidated damages are really a penalty, they are illegal and unenforceable.
Lock-out Law If a tenant is illegally forced out of all or part of their unit due to their landlord's actions, or failure to act, the tenant is entitled to damages under state law. The tenant is entitled to $200, or 3 times the amount of his or her actual damages for each occurrence, whichever is greater. The law also gives the tenant the right to possession of the unit. The only time a tenant can legally be forced out of their home is through a court order. See eviction, above.
Mitigate To lessen damages. The law generally requires you to make an effort to reduce your own losses. For example, if a tenant moves out before the lease is up, the landlord must try to rerent the unit.
Notice to Quit The legal document the landlord is required to send to a tenant before he or she can start an eviction case in court. The Notice usually tells the tenant to pay rent, move, or face the possibility of an eviction. (See eviction, above.
Plaintiff The person who starts a lawsuit by filing a complaint with the court clerk.
Pre-trial Appearance in court when a court date is set and some issues are decided by the court before the actual trial.
Repair & Deduct When the tenant obtains estimates of work to be done in the unit, advises the landlord ahead of time, has the work done or does it her/himself, and then deducts the cost of the repairs from the rent.
Summons The legal notice that begins a lawsuit. It informs the defendant when and where to appear in court. Ignoring the summons usually results in a default judgment against the defendant. (See defendant and default judgment, above.)
Truth in Renting Act Under state law, a landlord cannot include certain unconscionable provisions in the lease. For example, landlords must maintain their rental units in keeping with all city and state housing codes, even if the lease says that they do not have to, and even if the tenant signed the lease.
Variance An exception to a specific section of a housing code granted to a landlord on an individual basis. In Ann Arbor, they are granted by the Housing Board of Appeals(see above).
Writ of Restitution An order signed by a judge, usually ten or more days after an eviction judgment, authorizing the sheriff's department to remove your things from your home.