A side-by-side breakdown of the two legal frameworks. Covers how each is created, what rules govern each, the differences in board authority and document amendment processes, and why associations need to know which framework applies to them.
Wait… Aren’t Site Condominiums and Platted Subdivisions the Same Thing?
Picture two neighboring communities in Michigan: one is a site condominium, the other a platted subdivision. Both have beautiful detached homes, private roads, manicured landscaping, and an association that collects monthly dues. If you drove through either one, you probably couldn’t tell them apart.
Despite their similar appearance, site condominiums and platted subdivisions are subject to different legal frameworks, which can have significant consequences for how the community is governed. The distinction can affect maintenance responsibilities, assessment authority, enforcement of restrictions, amendment procedures, and the scope of the board’s authority.
Think of it like two smartphones that look identical on the outside but run completely different operating systems. The buttons may be in the same place, but what’s happening behind the scenes is entirely different.
Both site condominium associations and many platted-subdivision homeowners associations (HOAs) are organized as nonprofit corporations and therefore may be subject to the Michigan Nonprofit Corporation Act, MCL 450.2101 et seq. The key distinction is that a site condominium is also governed by the Michigan Condominium Act, MCL 559.101 et seq. Michigan does not have a comprehensive statute governing traditional subdivision HOAs. Instead, those HOAs are governed primarily by their recorded declaration or restrictive covenants, bylaws, articles of incorporation, and applicable general corporate, contract, and property law.
Site Condominium vs. Platted Subdivision: A Side-by-Side Comparison
The table below compares how Michigan law treats site condominiums and platted subdivisions, focusing on the legal framework rather than day-to-day operations.
| Topic | Site Condominium | Platted Subdivision |
| Primary Governing Law | Michigan Condominium Act, MCL 559.101 et seq. | Michigan Land Division Act, MCL 560.101 et seq. (creation of the subdivision), together with the recorded declaration/restrictive covenants and applicable Michigan contract and property law. |
| How the Community Is Created | By recording a Master Deed, Condominium Bylaws, and Condominium Subdivision Plan. | By recording a subdivision plat under the Land Division Act. |
| Type of Ownership | Owners hold title to a condominium unit together with an undivided interest in the common elements. | Owners hold fee simple title to an individual platted lot. |
| Foundational Governing Documents | Master Deed, Condominium Bylaws, Condominium Subdivision Plan, Articles of Incorporation (if applicable), and Rules and Regulations. | Declaration of Covenants, Conditions and Restrictions (or Restrictive Covenants), Articles of Incorporation (if applicable), Bylaws, and Rules and Regulations. |
| Association Type | Condominium Association. | Homeowners Association (HOA), if one has been established. |
| Board Authority | Derived from the Michigan Condominium Act and the governing documents. Some powers are granted directly by statute. | Derived primarily from the declaration, bylaws, articles of incorporation, and applicable corporate law. The board generally possesses only those powers granted by the governing documents or other applicable law. |
| Maintenance Responsibilities | Allocation of maintenance responsibilities is governed by the Master Deed, Bylaws, and the Condominium Act. Responsibilities are often divided between the association and the co-owner. | Allocation is governed primarily by the recorded declaration or restrictive covenants. Owners generally maintain their own lots unless responsibility is expressly assigned to the association. |
| Common Property | General Common Elements and Limited Common Elements, as defined in the Master Deed and Condominium Act. | Common areas or common property owned or maintained by the association, if any, as described in the plat or declaration. |
| Assessments | Authority to levy assessments is governed by the Condominium Act and the governing documents. | Authority to levy assessments must generally be found in the declaration, restrictive covenants, or other governing documents. |
| Rulemaking Authority | Typically authorized by both the Condominium Act and the governing documents. | Depends primarily on authority granted by the declaration, bylaws, and other governing documents. |
| Document Amendment Process | Governed by the Michigan Condominium Act, the Master Deed, and the amendment provisions contained in the governing documents. Amendments to the Master Deed generally must be recorded. | Governed primarily by the amendment provisions in the declaration or restrictive covenants. Amendments generally must be approved by the required percentage of owners and recorded with the county Register of Deeds. |
| Developer Control | The Michigan Condominium Act contains detailed provisions governing developer control and the transition of control to the association. | Developer rights are governed primarily by the recorded declaration and other governing documents. |
| Statutory Requirements | Subject to numerous statutory requirements governing administration, insurance, assessments, voting, records, developer rights, and other operational matters. | No comprehensive Michigan statute governs the day-to-day operation of all homeowners associations. Governance is largely controlled by the recorded documents and general principles of contract, property, and corporate law. |
| Corporate Governance | If incorporated, the association is also subject to the Michigan Nonprofit Corporation Act. | If incorporated, the association is likewise subject to the Michigan Nonprofit Corporation Act. |
| Where to Confirm the Legal Framework | Review the recorded Master Deed and Condominium Subdivision Plan. | Review the recorded subdivision plat and Declaration of Covenants or Restrictive Covenants. |
From the Homeowner’s Perspective: “What Does This Mean for Me?”
For a homeowner, whether the community is a site condominium or a platted subdivision may not seem important, at least until something goes wrong or the homeowner wants to make a change to the property. Whether the community is a condominium or a subdivision can affect the homeowner’s rights, responsibilities, and relationship with the association.
Consider maintenance responsibilities. Who is responsible for a roof, driveway, drainage system, road, or landscaping may depend on whether the property is a condominium unit, a common element, a limited common element, or a platted lot. The answer is not always obvious from the feature’s physical location, so owners should look to the Master Deed and Condominium Subdivision Plan in a site condominium, or to the declaration, restrictive covenants, and plat in a subdivision.
The same is true of community rules. Fences, landscaping, pets, leasing, parking, and exterior improvements may be subject to restrictions, but the association must have the authority to impose and enforce them. A rule does not necessarily become enforceable simply because the board adopted it.
The legal framework also affects assessments and owner rights. How assessments are imposed, whether a special assessment can be levied, and what rights owners have regarding voting, meetings, records, and challenging association decisions can depend on the applicable statute and governing documents. Even amendments to those documents may require different procedures or approval thresholds. Before assuming that a particular rule or procedure applies, homeowners should first determine what type of community they live in and what documents govern it.
From the Board Member’s Perspective: “What Can We Actually Do?”
For board members, the distinction is even more important as they are often expected to make decisions quickly, sometimes with little more than a homeowner complaint, a maintenance issue, or a question raised at a board meeting. Before deciding whether the association can adopt a rule, impose a special assessment, enforce a restriction, approve an improvement, or require an owner to take a particular action, the board should first identify its source of authority.
In a site condominium, that analysis generally starts with the Michigan Condominium Act and the condominium documents, along with the Michigan Nonprofit Corporation Act if the association is incorporated as a nonprofit. A platted subdivision does not have an equivalent comprehensive HOA statute; its authority generally comes from the declaration or restrictive covenants, bylaws, articles, applicable corporate law, and other governing documents.
Maintenance responsibilities are another area where the distinction matters. Roads, stormwater systems, drainage, sidewalks, landscaping, and other infrastructure may be treated differently depending on the community’s legal structure and governing documents. And even when a board has authority to act, it must still follow the required procedures. Notice, voting, owner approval, meeting requirements, recording, or other formalities may apply.
Ultimately, boards should avoid relying on the familiar refrain, “That’s how HOAs do it.” The better question is: “What authority do our governing documents and applicable law give us?”
From the Property Manager’s Perspective: “Which Rulebook Am I Working From?”
Property managers often sit at the intersection of the board, homeowners, vendors, and legal counsel. They are frequently the first person a homeowner contacts and the person responsible for turning board decisions into day-to-day operations, making it especially important to know which legal framework governs the community.
The first step is identifying the controlling documents. That distinction can affect everything from sending a violation notice to determining who is responsible for a maintenance request. Before telling an owner that the association can require a particular improvement, enforce a restriction, or pay for a particular repair, the manager should be able to identify the provision giving the association that authority or responsibility.
Managers should also be mindful of required procedures. Meeting notices, elections, owner communications, records, enforcement actions, and amendments may be governed by different requirements depending on the community. And when questions involve the scope of board authority, significant enforcement actions, assessments, amendments, or disputed maintenance responsibilities, involving legal counsel early can help avoid problems later.
For a property manager, knowing whether the community is a site condominium or a platted subdivision is therefore more than a technical detail. It is the starting point for knowing which rulebook to administer.
The Key Takeaway: Know Your Community Before You Govern It
A site condominium and a platted subdivision may look almost indistinguishable to the person walking down the street. They may have the same types of homes, private roads, similar amenities, and even associations with similar names.
But the legal framework underneath them can be very different.
For homeowners, that framework can affect your rights, your responsibilities, and what the association can require of you. For board members, it can determine what you have the authority to do and how you must do it. For property managers, it provides the roadmap for administering the community and advising the board.
The first step is therefore simple: before asking what the association can or cannot do, determine what kind of association it is.
Start with the recorded documents. If the community was established through a Master Deed and Condominium Subdivision Plan, it is likely a site condominium governed by the Michigan Condominium Act. If it was established through a recorded subdivision plat and restrictive covenants or a declaration, it is likely a platted subdivision.
Same neighborhood look. Different legal rulebook.
Understanding which legal framework governs the community is not merely a technical distinction. It is the starting point for determining who has authority, who has responsibility, what procedures must be followed, and what rights owners have.
Before a homeowner challenges a rule, a board adopts a new policy, or a property manager administers an enforcement action, ask the foundational question:
What legal framework governs this community?
Once that is clear, the rest of the analysis becomes much easier.
If your board or management team is unsure which framework governs your community, or how it affects a specific decision, the experienced Michigan community association attorneys at Hirzel Law can help you review your recorded documents and determine your association’s authority.
