2019 Michigan Compiled Laws
Chapter 559 - Condominiums
Act 59 of 1978 Condominium Act (559.101 - 559.276)
Section 559.183 Preliminary Reservation Agreement; Use; Condominium Buyer's Handbook; Placing Payment in Escrow; Cancellation of Agreement; Refund; Treating Payment as if Made Under Purchase Agreement.
Sec. 83.
(1) After filing a notice under section 71, a preliminary reservation agreement may be used by a developer to reserve a condominium unit for a prospective purchaser. During the time reservations are being accepted, a condominium buyer's handbook shall be available at the condominium project for all prospective purchasers.
(2) Upon receipt of payment under a preliminary reservation agreement, the developer shall place the payment in an escrow account with an escrow agent.
(3) A prospective purchaser who has made a payment under a preliminary reservation agreement may cancel that agreement. The developer shall fully refund within 3 business days after notice of cancellation is received all payments made.
(4) If a person who has entered into a preliminary reservation agreement subsequently enters into a purchase agreement, the developer shall treat a payment originally made under the preliminary reservation agreement as if made under a purchase agreement pursuant to section 84.
History: 1978, Act 59, Eff. July 1, 1978 ;-- Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983