Condominium associations frequently insure aging common elements, such as clubhouses, recreation centers, maintenance buildings, and other shared facilities, under replacement cost property insurance policies. Condominium and homeowners associations may assume that replacement cost coverage will fully fund rebuilding after a catastrophic loss. However, as Piatt Lake Bible Conference Association v Church Mutual Insurance Co., No. 2:23-CV-73, 2025 WL…
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Condominium associations rely on assessments to fund shared services, including building maintenance, landscaping, insurance, common utilities, and reserve planning. Board members are legally obligated to protect the condo association’s financial health, and part of that fiduciary duty is to ensure that every co-owner pays their share of the expenses in a timely manner. When some co-owners fail to pay, the…
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Michigan Court of Appeals Issues Important Opinion Concerning Reversion of Undeveloped Condominium Units to General Common Elements On September 17, 2025, the Michigan Court of Appeals issued an unpublished Opinion in the matter of Charter Twp of Fenton v Fenton Orchards Condo Ass’n, unpublished per curiam opinion of the Court of Appeals, issued September 17, 2025 (Docket No. 370733) addressing…
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The Michigan courts have consistently held that short-term rentals are neither residential nor commercial uses when interpreting restrictive covenants. While numerous cases from the Michigan Court of Appeals hold that short-term rentals violate residential and commercial use deed restrictions, these cases have not addressed whether long-term rentals also violate a residential or commercial use restriction if the restrictive covenants do…
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Three Essential Things Michigan Condominium Board Members Must Know Before Adopting Rules and Regulations One of the most powerful tools available to a board of directors of a community association in administering their community is the use of rules and regulations. Boards use rules and regulations to respond quickly to issues and help fill in gaps in governing documents; effective…
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When “As-Is” Doesn’t Mean “Anything Goes”: Developer Sues County Treasurer for Conveying Nonexistent Condominium Units Governmental entities and condominium and homeowners associations frequently dispose of foreclosed properties to private purchasers or developers through settlement agreements or deeds that include “as-is, without warranty” clauses. These provisions are intended to protect sellers from liability over the property’s physical condition. However, such language…
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