Michigan Condominium Act: Definition & Overview

Instructor: Tara Schofield
The Michigan Condominium Act makes an impact on how condo rules are upheld and the regulations of condo owners paying association fees. Learn how this act may affect you in your real estate career.

What is the Michigan Condominium Act?

Let's say you are marketing a condo for your client. Todd, your seller, has lived in the condo for four years and is moving out of state. He asked you to be his agent and sell the place as soon as possible.

Condominiums are attached dwellings that are owned by individuals. In 1978, Michigan adopted rules for an Act to provide a safe, comfortable environment for all residents to co-exist called the Michigan Condominium Act.

There are many important provisions within, including stipulations that:

  • payments must be made to the condo association even if the resident is not happy with the group.
  • the association can require all members to abide by the rules of the group.
  • a resident can sue the condo association, its officers and its directors if the rules are broken or not enforced.

The larger an association is, the more rules that govern the association under the act.

So, one of the challenges you face in selling Tom's condo is the strict rules of the association. They must be disclosed and agreed to by the new buyer in order for you to sell the home.

The Act and Real Estate Sales in Michigan

Uh oh! You have a buyer who has made an offer and Todd has accepted the terms. Just when you think everything is going well, you get the notice that Todd has not paid his condo fees for the last year. In fact, the condo association has put a lien on Todd's property.

When you ask Todd about it, he says the association was not holding dog owners responsible for cleaning up and were not regulating assigned parking spaces as they agreed to in the condo rules. Todd refused to pay the condo fees because he didn't think they were doing their job.

You have to explain to him that under the Michigan Condominium Act, Todd must pay the condo fees even if he thinks the management is not doing their job or enforcing rules. Todd can sue the association, but if he doesn't pay his condo fees the association can foreclose on his property. Until this matter is handled, the property cannot be sold.

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