Wayne County Court Blocks Real Token from Collecting Rent on Blighted Properties

What's Happening?

A Wayne County Circuit Court judge has issued a temporary restraining order against Real Token, a real estate investment firm, preventing it from collecting rent on hundreds of Detroit homes until the properties comply with city codes. This legal action is part of Detroit's largest public nuisance lawsuit, which was filed earlier this month due to blight violations at over 400 properties owned by Real Token. The court's decision also prohibits the company from pursuing evictions without a certificate of compliance. Detroit Corporation Counsel Conrad Mallett announced that tenants will be directed to pay rent into an escrow account starting in August to protect them from eviction due to nonpayment. Real Token has been ordered to secure 58 vacant homes and address all code violations within 90 days.

Why It's Important?

This court ruling is significant as it highlights the ongoing struggle between property owners and city authorities over housing standards and tenant rights. The decision to block rent collection until compliance is achieved underscores the city's commitment to addressing blight and ensuring safe living conditions for residents. This case could set a precedent for similar actions in other cities facing housing quality issues. Tenants stand to benefit from improved living conditions and legal protection against unjust evictions, while Real Token faces potential financial and reputational repercussions if it fails to meet the court's requirements.

What's Next?

Real Token must now focus on meeting the court's demands by securing vacant properties and correcting code violations within the stipulated 90-day period. The company may also need to reassess its property management practices to prevent future legal challenges. Meanwhile, Detroit city officials will likely continue monitoring compliance and may expand their legal actions if additional violations are discovered. Tenants will receive guidance on how to manage their rent payments during this period, ensuring their protection from eviction.