2006 Michigan Compiled Laws - Act 59 of 1978


Act 59 of 1978

AN ACT relative to condominiums and condominium projects; to prescribe powers and duties of the administrator; to provide certain protections for certain tenants, senior citizens, and persons with disabilities relating to conversion condominium projects; to provide for escrow arrangements; to provide an exemption from certain property tax increases; to impose duties on certain state departments; to prescribe remedies and penalties; and to repeal acts and parts of acts.

History: 1978, Act 59, Eff. July 1, 1978 ;--Am. 1980, Act 283, Imd. Eff. Oct. 10, 1980 ;--Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983 ;--Am. 1998, Act 36, Imd. Eff. Mar. 18, 1998

The People of the State of Michigan enact:

Section 559.101Short title.
Section 559.102Meanings of words and phrases.
Section 559.103Definitions; A to C.
Section 559.104Definitions; C.
Section 559.105Definitions; C.
Section 559.106Definitions; C to G.
Section 559.107Definitions; L to M.
Section 559.108"Master deed" defined.
Section 559.109Definitions; P.
Section 559.110Definitions; R to T.
Section 559.111Offering residential condominium for sale; compliance with occupational code required.
Section 559.115Construction or interpretation of act.
Section 559.121Offering condominium unit or project for sale; liabilities and penalties; duties of developer; compliance by association of co-owners.
Section 559.131Condominium project containing convertible area; contents of master deed.
Section 559.132Expandable condominium project; contents of master deed.
Section 559.133Contractable condominium project; contents of master deed.
Section 559.134Leasehold condominium project; lease terms; required contents of master deed; termination of co-owner's leasehold interest by lessor prohibited.
Section 559.135Easements; creation; description; contents.
Section 559.136Addition of undivided interests in land as common elements; tenancy of co-owners; condominium unit on lands prohibited; description in master deed.
Section 559.137Allocation to condominium unit of undivided interest in common elements proportionate to percentage of value assigned; statement, table, exhibit, or schedule in master deed; formula; basis of reallocation; allocating percentage of value to convertible space; alteration of undivided interest in common elements; partition of common elements.
Section 559.138Creation of condominium units within convertible or additional lands; allocation of interests in common elements; amended master deed and condominium subdivision plan; revised schedule.
Section 559.139Assignment and reassignment of limited common elements; application; amendment to master deed.
Section 559.140Easement for encroachment.
Section 559.141Conversion of convertible area into condominium units or common elements; amendment; identifying number; allocating portion of undivided interest; description of limited common elements.
Section 559.143Expansion, contraction, or conversion of land or space; time of occurrence; consolidating master deed.
Section 559.144Transferable easement as to common elements for purpose of making improvements.
Section 559.145Offices, model units, and other facilities; maintenance; costs; restoration of facilities.
Section 559.146Restrictions and covenants.
Section 559.147Improvements or alterations by co-owners.
Section 559.147aPersons with disabilities; improvements or modifications by co-owner to facilitate access or movement; alleviation of hazardous conditions.
Section 559.148Relocation of boundaries between adjoining condominium units.
Section 559.149Subdivision of condominium units.
Section 559.150Termination of condominium project or amendment of master deed by developer.
Section 559.151Termination of condominium project by agreement of developer and unaffiliated co-owners.
Section 559.152Advisory committee of nondeveloper co-owners; establishment; meeting with condominium project board of directors; cessation; right to elect directors; formula; recording consolidating master deed; copy; "units that may be created" defined; time of sale to nondeveloper co-owner.
Section 559.153Bylaws governing administration of condominium project; amendments; recording.
Section 559.154Bylaws; mandatory provisions; allocation of votes; dispute, claim, or grievance; applicability of subsections (8), (9), and (10).
Section 559.155Voiding service contract and management contract.
Section 559.156Bylaws; permissible provisions.
Section 559.156aDisplaying United States flag on condominium unit; applicability of section.
Section 559.157Books, records, and contracts; examination; audit.
Section 559.158Acquisition of title by foreclosure of first mortgage; liability for assessments.
Section 559.159Submission of property with mortgage of record.
Section 559.160Action on behalf of and against co-owners.
Section 559.161Condominium unit as sole property.
Section 559.162Ownership of condominium unit.
Section 559.163Rights of co-owner.
Section 559.164Conveyance and other instruments affecting title to condominium unit; description of unit; recordation.
Section 559.165Compliance with master deed, bylaws, rules, and regulations.
Section 559.166Condominium subdivision plan; preparation; signature and seal; contents; recording; structures and improvements to be completed by developer.
Section 559.167Changes in condominium project; amendment; replat of condominium subdivision plan; right of withdrawal.
Section 559.168Availability of condominium documents.
Section 559.169Assessment of common expenses; contribution of co-owner.
Section 559.170Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.171Notice of proposed action.
Section 559.171aRules applicable to condominium project not served by public water and public sewers; submission of plan to department of public health; approval or rejection.
Section 559.172Establishment of condominium project; sale of condominium unit before master deed recorded prohibited; exception; substantial failure of master deed to comply with act; marketability of title.
Section 559.172aRecordation of master deed; creation of time-share unit; amendment of documents as material alteration.
Section 559.172bAir space over fee.
Section 559.173Recordation of master deed and amendment; certification by treasurer; filing copy of master deed with local supervisor or assessing officer; filing architectural plans and specifications or affidavit with local unit of government.
Section 559.174Delivery and retention of condominium subdivision plan; recordation of consolidating master deed.
Section 559.181Service of process.
Section 559.181aPromotional material; labeling structure or improvement "need not be built."
Section 559.182Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.183Preliminary reservation agreement; use; condominium buyer's handbook; placing payment in escrow; cancellation of agreement; refund; treating payment as if made under purchase agreement.
Section 559.184Section inapplicable to business condominium unit; withdrawal from signed purchase agreement; depositing and retaining funds in escrow; contents of purchase agreement; waiver of right of withdrawal; form.
Section 559.184aProviding copies of listed documents to prospective purchaser of condominium unit; amendment to purchase agreement and condominium documents; signature on form as evidence; providing prospective purchaser of business condominium unit copy of recorded master deed; misleading statements; violation.
Section 559.185Liquidated damages in case of default; actual damages; receipt of escrowed funds.
Section 559.186, 559.187 Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.188Offering for sale and entering into purchase agreement with respect to condominium unit proposed to be included within additional land of expandable condominium or within convertible land without recording amended master deed.
Section 559.189Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.190Amendment of condominium documents; consent; void provision superseded by subsection (2); reservation of right to amend; notice of proposed amendments; costs and expenses; master deed amendment; affirmative vote.
Section 559.190aVoting procedures.
Section 559.191Recording of amendment to recorded condominium document required; copy to co-owner.
Section 559.192, 559.193 Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.194Title insurance policy.
Section 559.195Revision of condominium subdivision plan; altering percentage of value; revisions in percentage of value per condominium unit.
Section 559.201-559.203 Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.203aRepealed. 1983, Act 113, Imd. Eff. July 12, 1983.
Section 559.203bSection inapplicable to business condominium unit; release of deposits or amounts retained in escrow; conditions; substantial completion; furnishing escrow agent with evidence of adequate security in place of retaining funds; certificate; notice to developer; release of interest paid on amounts escrowed; escrow agent deemed independent party; liability; certification by licensed professional architect or engineer; "licensed professional engineer or architect" defined.
Section 559.204Conversion condominium project; notice; termination of tenancy.
Section 559.204aTerminating tenancy of certain persons without cause prohibited; criteria; notice.
Section 559.204bDefinitions; applicability of section; notice of right to elect extended lease arrangement; election; extended lease arrangement provisions; number of years lease renewable; notice by developer entering into restricted lease arrangement; assignment, device, sublease, or transfer of lease by qualified senior citizen or person with disabilities prohibited; automatic termination of lease; liability of lessor violating rental restrictions; recovery of possession of restricted unit; transfer of restricted unit.
Section 559.204cRepealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
Section 559.204dDeveloper not required to offer extended lease arrangement; conditions; compliance.
Section 559.204eLegislative intent; examination of relevant information; recommendation.
Section 559.205Reserve fund.
Section 559.206Default by co-owner; relief.
Section 559.207Action to enforce terms and provisions of condominium documents; action for injunctive relief or damages.
Section 559.208Assessment lien; priority; foreclosure; bid; actions; receiver.
Section 559.209Liability for torts.
Section 559.210Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.211Sale or conveyance of condominium unit; payment and statement of unpaid assessments; liability for unpaid assessments.
Section 559.212Renting or leasing condominium unit; disclosure; review of lease form; notice; compliance required; action by association upon noncompliance; notice of arrearage; deduction of arrearage and future assessments from rental payments.
Section 559.213Financing.
Section 559.214Homestead exemption.
Section 559.215Action by person or association adversely affected by violation of or failure to comply with act, rules, agreement, or master deed; costs; violation of §§ 559.121 or 559.184a; liability.
Section 559.221Mobile home condominium project; establishment, operation, and regulation; compliance.
Section 559.222Mobile home condominium project; disclosure.
Section 559.222aMobile home conversion condominium project; notification of tenants; termination of tenancy.
Section 559.222bExtended lease arrangement.
Section 559.223Mobile home condominium project; leasing agreements.
Section 559.224Title to mobile home condominium site; undivided interest in common elements; removal of mobile home; sale of site.
Section 559.225, 559.226 Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.227Compliance by developer of mobile home condominium; prohibited requirements.
Section 559.231Special assessments and property taxes.
Section 559.232Construction lien; limitations.
Section 559.233Eminent domain.
Section 559.234Recreational facilities and other amenities; compliance.
Section 559.235Successor developer.
Section 559.236Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.237Obligations of developer not affected by transfer of interest.
Section 559.238Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.239Complaint for nonpayment of assessments; answer; set off.
Section 559.240Reproduction of document; certified reproduction or certification as evidence.
Section 559.241Law, ordinance, or regulation of local unit of government; limitations.
Section 559.242Promulgation of rules, forms, and orders; definition of terms.
Section 559.244Contract to settle by arbitration; execution; option; period of limitations; allocation of costs; conduct; appointment of arbitrator; method; applicable law; rules; arbitration award.
Section 559.245Complaint copy to developer; notice of available remedies.
Section 559.250Discretionary powers of administrator; exercise.
Section 559.251-559.255 Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.256Prohibited representations.
Section 559.257Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.258Prohibited conduct as misdemeanor; penalty; violation as separate offense; consecutive terms of imprisonment; aggregate fines; action by prosecuting attorney or department of attorney general.
Section 559.259Injunction.
Section 559.260Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.270Effect of act and 1982 amendatory act; consummation of proceedings; continuation or institution of proceedings.
Section 559.271Repeal of §§ 559.1 to 559.31.
Section 559.272Effective date; requirements for disclosure statement.
Section 559.273Applicability of amendatory act; applicability of certain subsections.
Section 559.274Repealed. 2002, Act 283, Imd. Eff. May 9, 2002.
Section 559.275Powers of administrator.
Section 559.276Statute of limitations.

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