O'Connor v. Resort Custom Builders, Inc.
Michigan Supreme Court
591 N.W.2d 216 (1999)
Resort Custom Builders (defendant) built a house in a subdivision restricted by covenant to residential use, but unable to find a buyer, proposed instead to sell interval-ownership timeshares giving each of multiple purchasers an exclusive one- or two-week annual use right along with an undivided ownership interest; other subdivision lot owners (plaintiffs) sued, arguing this timeshare scheme would violate the residential-use covenant, and the trial court agreed, though an intermediate appellate court reversed, prompting the owners' further appeal.
Whether converting a property into rotating, interval-based timeshare ownership, where no single owner occupies the property continuously, violates a covenant restricting property use to residential purposes.