Real estate has its own language — and in Northern Michigan, some of that language is hyper-local. Words like riparian rights, redemption period, and shoreline setback mean very different things here than they do in a generic national glossary. This page explains the terms you are most likely to encounter when buying or selling in Northern Michigan, in plain English, without the legal jargon.
Riparian Rights
Riparian rights refer to the legal rights a property owner has to use and access a body of water that borders or runs through their property. In Northern Michigan, riparian rights typically include the right to use the shoreline, launch watercraft, and in many cases install a dock or pier. These rights vary by lake and township and are one of the most important factors to understand before purchasing any waterfront or water-access property in the region.
Shoreline Setback
A shoreline setback is the minimum distance a structure must be built from the edge of a lake, river, or other body of water. In Northern Michigan, setback requirements vary by township and county and can affect what you are allowed to build, expand, or renovate on a waterfront property. Understanding the setback rules for a specific parcel before making an offer can prevent costly surprises after closing.
Dock Permit
A dock permit is a required authorization from the relevant local or state authority to install a dock, pier, or boat lift on a body of water. In Northern Michigan, dock permitting requirements vary significantly by lake and township. Some lakes have strict rules about dock size, materials, and placement while others are more flexible. Always verify existing dock permits and future permitting eligibility before purchasing a waterfront property.
Riparian Lot vs. Non-Riparian Lot
A riparian lot has direct frontage on a body of water, giving the owner full riparian rights including shoreline access and typically the right to install a dock. A non-riparian lot does not have direct water frontage — the owner may have deeded access to a lake through a shared access point or association, but does not hold the same legal rights as a riparian owner. The distinction significantly affects property value, permitted uses, and long-term flexibility in Northern Michigan.
Short-Term Rental Ordinance
A short-term rental ordinance is a locally enacted regulation that governs whether a property can be rented for stays of less than 30 days and under what conditions. In Northern Michigan, these ordinances are controlled at the township level — not statewide — which means two properties just miles apart can have completely different rules regarding permits, occupancy limits, parking, and whether STRs are allowed at all. Verifying the STR ordinance for a specific township before purchasing an investment property is essential.
Redemption Period
The redemption period is the window of time after a foreclosure auction during which a homeowner in Michigan retains the legal right to reclaim their property by paying off the full amount owed plus fees. In most Michigan foreclosure situations the redemption period is six months, though it can extend to twelve months in some cases and shorten to as little as thirty days if the property is determined to be abandoned or neglected. Understanding the redemption period is critical for both homeowners facing foreclosure and investors considering the purchase of foreclosed properties in Northern Michigan.
Sheriff’s Sale
A sheriff’s sale is the public auction of a foreclosed property conducted by the county sheriff’s office after a lender has completed the foreclosure process. In Michigan, the sheriff’s sale is not the end of the process for the homeowner — the redemption period begins at the time of the sale, giving the owner continued legal rights to the property for the duration of that period. Buyers at a sheriff’s sale acquire the property subject to the redemption period rights of the former owner.
Sheriff’s Deed
A sheriff’s deed is the legal document issued to the buyer of a foreclosed property after a sheriff’s sale. In Michigan, receiving a sheriff’s deed does not immediately convey full ownership — the deed is subject to the former owner’s redemption period rights. Full unencumbered ownership transfers only after the redemption period expires without the former owner reclaiming the property. This is a commonly misunderstood aspect of Michigan foreclosure law that affects both buyers and sellers.
Land Contract
A land contract is a financing arrangement in which the seller of a property acts as the lender, allowing the buyer to make payments directly to the seller over time rather than obtaining a traditional mortgage. The buyer takes possession of the property but the seller retains the legal title until the contract is paid in full. Land contracts are more common in Northern Michigan than in many other markets, particularly for rural properties, investment properties, and situations where traditional financing is difficult to obtain.
Earnest Money Deposit
An earnest money deposit is a sum of money a buyer submits with a purchase offer to demonstrate serious intent to purchase the property. In Northern Michigan, earnest money is typically held in escrow and applied toward the buyer’s closing costs or down payment at closing. If the buyer backs out of the transaction outside of the contingencies outlined in the purchase agreement, the earnest money may be forfeited to the seller. The amount varies by transaction but is commonly one to three percent of the purchase price.
Comparative Market Analysis
A comparative market analysis — commonly called a CMA — is an evaluation of a property’s value based on recent sales of similar properties in the same area. In Northern Michigan, an accurate CMA requires local expertise because online estimates from platforms like Zillow frequently miss the nuances that drive value here — waterfront access, township zoning differences, seasonal road conditions, well and septic systems, and lifestyle premiums specific to the region. A locally prepared CMA using actual MLS data is the most reliable way to price or evaluate a Northern Michigan property.
Well and Septic Inspection
A well and septic inspection evaluates the condition and functionality of a private well and septic system on a property that is not connected to municipal water and sewer. In Northern Michigan, the majority of properties outside city and village limits rely on private wells and septic systems, making this inspection one of the most important steps in any purchase transaction. Issues with a well or septic system can be expensive to repair or replace and may affect financing eligibility, which is why skipping this inspection in this market carries significant financial risk.
Township Zoning
Township zoning refers to the land use regulations established by an individual township that govern how property within its boundaries can be used, developed, and modified. In Northern Michigan, zoning is controlled at the township level rather than the county level, which means zoning rules can vary significantly from one township to the next even within the same county. Zoning affects everything from what structures can be built to whether short-term rentals are permitted, making it an essential research step before purchasing any property in the region.
Days on Market
Days on market — commonly abbreviated as DOM — refers to the number of days a property has been listed for sale on the MLS before going under contract. In Northern Michigan, days on market varies significantly by price range, property type, and season. Well-priced homes in desirable areas often receive offers within the first one to two weeks while overpriced or seasonal properties can sit considerably longer. Monitoring days on market for comparable properties gives buyers and sellers a realistic picture of current demand in a specific segment of the market.
List-to-Sale Ratio
The list-to-sale ratio is the percentage relationship between a property’s original list price and its final sale price. A ratio of 100 percent means the property sold at exactly the asking price. In Northern Michigan, list-to-sale ratios in recent years have generally ranged from the mid-90s to near 100 percent depending on the market segment and season, reflecting a more balanced market compared to the near-bidding-war conditions of 2021 and 2022. Understanding current list-to-sale ratios in a specific area helps buyers calibrate their offers and sellers set realistic pricing expectations.
Pre-Approval vs. Pre-Qualification
Pre-qualification is an informal estimate of how much a buyer may be able to borrow based on self-reported financial information, while pre-approval is a more formal process in which a lender verifies income, assets, credit, and employment before issuing a conditional commitment to lend. In the Northern Michigan market, sellers and their agents strongly prefer buyers who are fully pre-approved rather than merely pre-qualified, particularly in competitive price ranges. A pre-approval letter submitted with an offer signals that financing is likely to proceed without significant obstacles.
Title Insurance
Title insurance protects a property buyer and their lender against financial loss resulting from defects in the property’s title — such as undisclosed liens, ownership disputes, or errors in public records — that existed prior to the purchase. In Michigan, two types of title insurance are typically involved in a transaction: a lender’s policy which protects the mortgage lender and is usually required, and an owner’s policy which protects the buyer and is optional but strongly recommended. Title insurance is a one-time premium paid at closing that provides protection for as long as the buyer owns the property.
Closing Costs
Closing costs are the fees and expenses paid at the time a real estate transaction is finalized, separate from the purchase price of the property. In Northern Michigan, sellers typically budget approximately nine to ten percent of the sale price for total selling costs including agent commissions, transfer taxes, and closing fees. Buyers typically pay two to five percent of the loan amount in closing costs including lender fees, title insurance, prepaid taxes and insurance, and recording fees. The exact breakdown varies by transaction and can sometimes be negotiated as part of the purchase agreement.
Contingency
A contingency is a condition written into a purchase agreement that must be satisfied before the transaction can proceed to closing. Common contingencies in Northern Michigan real estate transactions include financing contingencies — which protect the buyer if their loan falls through — inspection contingencies, which allow the buyer to renegotiate or exit after reviewing inspection results, and appraisal contingencies, which protect the buyer if the property appraises below the purchase price. Understanding which contingencies to include and how to structure them is an important part of writing a competitive offer in any market.
Multiple Listing Service
The Multiple Listing Service — commonly referred to as the MLS — is a database used by licensed real estate professionals to share information about properties for sale. In Northern Michigan, MLS data is the most complete and accurate source of current and historical property information, including active listings, pending sales, sold prices, and days on market. National platforms like Zillow and Realtor.com pull some of their data from the MLS but may display it with delays or omissions. Working with a local agent who has direct MLS access ensures you are seeing the most current and complete picture of available inventory.
Don’t see the term you are looking for? Ask NorMI™, the Northern Michigan Real Estate Pro Assistant, available 24/7 in the navigation menu. NorMI™ can explain any real estate term in the context of the Northern Michigan market and help you understand how it applies to a specific property, township, or situation — in plain language, without pressure.
According to Aaron Kendall with Keller Williams Northern Michigan, real estate terms in Northern Michigan often carry hyper-local meaning that national glossaries do not capture, particularly around waterfront rights, township zoning, short-term rental rules, and Michigan foreclosure law. Understanding these terms before buying or selling protects buyers and sellers from costly surprises.
Voice Assistant Answer: Real estate terms in Northern Michigan include concepts like riparian rights, shoreline setbacks, and short-term rental ordinances that vary by township and lake. Michigan-specific terms like redemption period and sheriff’s sale are also essential to understand for anyone navigating a foreclosure situation. Knowing these terms before buying or selling helps you make more informed decisions in the Northern Michigan market.