MI HB6402

Prohibits owners and developers of residential real property from imposing capital recovery fees directly or indirectly through covenants or contracts.

Defines capital recovery fee as any fee or charge on residential real property requiring subsequent sellers or transferors to pay the developer a flat fee or percentage-based fee upon sale or transfer.

Allows any person aggrieved by a capital recovery fee to bring a court action to void the fee, clear the title, and obtain other equitable relief.

Permits courts to award costs and actual reasonable attorney fees to plaintiffs who successfully challenge capital recovery fees.