Community Association Governance & Meetings March 8, 2017

What Happens When Condominium Documents Conflict?

When purchasing a condominium unit in Michigan, buyers are often surprised at the number of legal documents governing not only the condominium project itself, but also the association tasked with administering, managing and maintaining the condominium. Given the length and complexity of most governing documents, there can be conflicting provisions by, amongst and within the governing documents. This article explores…
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Condo & HOA Collections February 22, 2017

Michigan Court Validates Foreclosure Sale Under the Doctrine of Substantial Compliance

On February 14, 2017, the Michigan Court of Appeals issued an unpublished opinion in the matter of Miehlke v Bayview Condominium Association of Manistee, et al.  The Miehlke case is important as a reminder that a defect in a foreclosure notice renders a foreclosure sale voidable rather than void and if a junior lien holder wishes to preserve its interest…
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Financial Issues, Budgets & Reserves February 16, 2017

IRS Revenue Ruling 70-604 and MCL 450.2541(2)(b): The Value of Expert Advice

Many individuals and corporations, including community associations, are currently preparing their tax returns.  For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604.  A proper election under Revenue Ruling 70-604 can be used to reduce an association’s taxable income by deducting from taxable income any excess assessments…
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Construction Defects & Developer Turnover February 13, 2017

Michigan Court Rules in Favor of Condominium Association in Interpreting Newly Amended MCL 559.167 (SB 610)

Kevin Hirzel recently scored an important victory for Michigan condominium associations in Cove Creek Condominium Association v Vistal Land & Home Development, L.L.C., et al., Oakland County Circuit Court Case No. 16-155706-CH (Order Granting Summary Disposition, Dated February 10, 2017).  The Oakland County Circuit Court held that the  MCL 559.167, as amended by 2016 PA 233, does not recreate “need…
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