When a co-owner in a Michigan condominium files for bankruptcy, can the condominium association still collect unpaid assessments? Most boards assume the answer is no. This belief is common, but not entirely correct. While bankruptcy offers some protection against collection efforts, it does not completely eliminate the condominium association’s rights. Michigan condominium associations that understand the rules, act quickly, and…
Read More →
A common misconception among delinquent condominium co-owners is that once a condominium lien is recorded against their unit, there is nothing they need to do about it if they do not intend to sell or refinance their property. Unfortunately, this assumption is incorrect and can lead to significant financial consequences. Under the Michigan Condominium Act, unpaid condominium assessments create a…
Read More →
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…
Read More →
Timely payment of assessments is essential for Michigan condominium and homeowners associations (HOAs) to fund maintenance, operations, and community services. When co-owners fail to pay assessments on time, many associations impose late fees as an incentive for timely payment and to recover administrative costs. However, the ability to charge late fees, as well as the amount charged, depends entirely on…
Read More →
When buying a condominium in Michigan, one crucial question often arises: Who is responsible for unpaid assessments—the seller or the buyer? Michigan law, specifically MCL 559.211, does provide some protection for buyers, but a recent case from the Michigan Court of Appeals, Holcomb v. Harbour Pointe Condo. Ass’n, makes clear that this protection only goes so far. It does not…
Read More →
On May 12, 2000, the Michigan Court of Appeals issued an important decision in Lakes of the North Association v. Twiga Limited Partnership, clarifying that a Michigan tax foreclosure sale does not cancel the obligation to pay HOA assessments. This case is critical for condominium and homeowners association board members to understand, especially when dealing with delinquent accounts or foreclosed…
Read More →
