Construction Defects & Developer Turnover September 11, 2024

Understanding Breach of Fiduciary Duty by Developer-Appointed Directors in Condominium Associations

Many co-owners volunteer to serve on the board of directors because they believe that they can lead their condominium association in a positive direction.  This belief is essentially what it means to fulfill their duty as a fiduciary: to act in good faith, loyally to the association, and avoiding self-dealing.  If the association believes that a co-owner director has not…
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Construction Defects & Developer Turnover September 5, 2024

Developer Turnover: 8 Things Michigan Condo Associations Must Know when Negotiating with a Developer to Avoid Paying for Construction Defects

Successfully transitioning control of a condominium association from the developer to the co-owners is critical for the long-term success of any Michigan condominium.  When a developer exits a condominium project, it often requests a release of liability from the co-owner controlled board of directors.  An experienced developer has an inherent advantage in negotiating a release with a condominium association, as…
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Financial Issues, Budgets & Reserves August 20, 2024

Understanding the Michigan Reserve Study Bill: Essential Updates for Condominium Associations 

Did you know that Michigan’s HB 5019, a new bill pending in the Michigan House, aims to bring significant changes to the way condominium associations manage their reserve funds? Currently, Michigan law requires that condominium associations maintain a reserve fund for major repairs and the replacement of common elements. The state administrative code mandates that this reserve fund must be at…
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Maintenance Repairs & Common Elements August 13, 2024

Michigan Court Clarifies Condo Liability for Slip and Falls

Condominium Association’s Legal Duty to Co-Owners: Key Takeaways from Janini v. London Townhouses Recently, the Michigan Supreme Court decided the case of Janini v London Townhouses Condominium Association, issued July 11, 2024 (Docket No. 164158), concluding that a co-owner of a condominium unit is an invitee under Michigan law if that person enters the common elements of the condominium, and…
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Condo & HOA Legislation July 24, 2024

The Homeowners’ Energy Policy Act: A Michigan HOA’s Guide to Solar Panels and Energy Saving Improvements

The Michigan legislature recently enacted the Homeowners’ Energy Policy Act, 2024 PA 68, which imposes new requirements on Michigan homeowners associations with respect to installing solar panels and other energy-saving improvements.  The Homeowners’ Energy Policy Act, MCL 559.301 et. seq. will prevent homeowners associations from completely banning solar panels and other energy-saving devices when it becomes effective on April 1,…
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