Condominium associations and homeowners associations collect assessments from homeowners earmarked for the benefit of the community. However, there are times when board members, property managers or, more generally, thieves misappropriate or embezzle monies intended to benefit the community. In 2017, the treasurer of the Black Forest Estates Association in Traverse City, Michigan was initially charged with multiple felonies each involvingRead more
Category Archives: Audits
Many condominium board members volunteer to serve their condominium association for altruistic purposes. While often well intentioned, it is not uncommon for board members to not have any training that would make them aware of potential pitfalls that commonly entangle a condominium association in litigation. In other instances, co-owners may have self-interested motives for serving on a board that cloudRead more
MCL 559.157 – Has your Michigan Condominium Association had its books, records and financial statements reviewed by a Certified Public Accountant?
The Michigan Condominium Act was amended in 2014 to impose additional requirements on condominium associations with respect to financial record keeping and encourage transparency. Prior to 2014, the annual audit or review of an association’s books, records and financial statements did not need to be certified. After MCL 559.157 was passed, and became effective in 2014, a condominium association withRead more
Transitioning from Developer Control to Nondeveloper Co-owner Control: Five Practical Steps Every Condominium Should Take
Every community association in Michigan undergoes a transition or “turnover” phase whereby the control of the community association changes from developer control to owner control. In Michigan, the transition process for condominiums is governed by the Condominium Act, MCL 559.110, et al. Unfortunately, homeowner associations are not included in the Condominium Act and are solely governed by the terms inRead more