Blog > How Michigan’s New Land Division Law Could Unlock More Value in Your Property

How Michigan’s New Land Division Law Could Unlock More Value in Your Property

by Sherie Berry

Michigan’s real estate and land use landscape just changed in a meaningful way for property owners, developers, and investors. Public Act 58 of 2025, passed by the Michigan Legislature, expands the potential for future land divisions under the state’s Land Division Act — offering greater flexibility for subdividing large parcels of land. If you own property in Michigan (especially acreage), this law could impact your long-term plans.

Below, we break down what the new law means, how it works, and we walk through a practical example using an 80-acre parcel to show how owners might benefit.

What Public Act 58 of 2025 Actually Does

Before this change, the Land Division Act placed strict limits on how and how many times a parcel of land could be divided without going through a formal and costly subdivision plat process. Once owners used up their allowable divisions, they were stuck — even if the parcel was large and underutilized.

Public Act 58 of 2025 expands those allowable divisions by tying the number of potential parcels to the size of the original parent parcel. The result? Large tracts of land now offer more opportunities for creating additional lots without excessive regulatory hurdles — as long as local zoning, frontage, and health department requirements are met.

Importantly:

The law applies immediately upon its effective date
It does not erase past divisions, but it expands future division potential
Certain limits phase in during the first year after enactment

How the Law Works — in Plain English

Here’s a key piece of language from the statute explaining how many parcels can be created from the first 10 acres of a parent parcel:

For the first 10 acres or fraction thereof:
• From the effective date until one year later, up to 4 parcels.
• After one year, up to 10 parcels.

This means in the first year after the law takes effect, owners are temporarily limited to four parcels from the first 10 acres — but once that first year passes, they can divide those same 10 acres into up to 10 parcels.

For acreage beyond that first 10 acres, the expanded rules allow for additional divisions based on the total property size.

Example: What This Means for an 80-Acre Parcel

Let’s make this concrete with a real scenario:

👇 Your Situation

You own a 80-acre property in Michigan
You want to create multiple buildable lots over time — for family members, investment, or development
You’d prefer to avoid a full subdivision plat (typically expensive and time-consuming)

🔹 Under the Old Law

Before Public Act 58, there was a fairly low cap on the number of divisions allowed from a parent parcel before needing to plat it. Even with 80 acres, owners often hit a limit quickly and faced long waits or costly platting to create more lots.

🔹 Under Public Act 58 — First Year

During the first year after the law took effect:

The first 10 acres can be divided into up to 4 parcels
For the remaining 70 acres, additional parcels can be created under the expanded rules (subject to zoning, frontage, and county health approval)

This means:

You can begin dividing now
You do not have to wait a year to start
You get immediate added flexibility compared to the old regulations

🔹 Under Public Act 58 — After One Year

Once the first year has passed:

The first 10 acres can be divided into up to 10 parcels
The remaining 70 acres remain available for additional divisions based on size and regulatory compliance

If rural zoning and well/septic requirements allow 2-acre minimum parcels, the 80-acre tract could realistically support somewhere in the 25–35 parcel range (after accounting for road access, setbacks, and health department spacing rules).
That’s a far greater potential yield than under the old limitations and makes land more valuable and flexible.

**What This Does Not Change**

It’s important to understand what Public Act 58 doesn’t alter:

It does not reset any past exempt split waiting periods.
Exempt splits (one extra split every 10 years) still follow the 10-year rule.
It does not override local zoning requirements.
Cities and townships still set minimum lot sizes, frontage requirements, and land uses.
It does not remove health department requirements.
Well and septic siting and approvals are still critical, especially outside municipal utilities.
It does not erase past recorded divisions.
Landowners must still account for how many splits have already been used on a property.

Why This Matters

For Michigan landowners — especially those with larger properties — Public Act 58 of 2025:

Adds long-term flexibility
Reduces the urgency of hitting early division caps
Makes phased subdivision achievable without platting
Allows strategic planning for estate transfer, family parcels, or housing development

This is especially useful in rural and suburban areas of West Michigan where large tracts are common, and demand for flexible lot creation is growing.

Final Takeaway

Public Act 58 of 2025 expands land division potential in Michigan, giving property owners more control over how land is subdivided over time — without forcing costly subdivision procedures or waiting indefinitely for exemptions.

If you own large acreage (like 80 acres), this means more flexibility and more possibilities for how your property can be used, transferred, or developed — starting right now.

It's always important to check with your local governing authority and/or an attorney to verify information for your area.

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