Condo and HOA Assessments

May 23, 2025

Do Condo Sellers Have to Disclose Future Assessments? What Holcomb Clarifies About MCL 559.211

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…
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March 20, 2025

Michigan Court Confirms: Tax Foreclosure Sale Does Not Eliminate Obligation to Pay HOA Assessments

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…
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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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February 16, 2024

How to Fix the Roads in your Condo or HOA: Increase Assessments or A Special Assessment District?

The majority of new residential condominium and subdivision developments in the State of Michigan are established with private roads. When a new condominium project or subdivision is established with private roads, the roads are typically identified as a “common element” or a “common area” and are owned collectively by all members of the applicable condominium or homeowners association. When roads…
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April 21, 2023

Michigan Court Rules Condo Association Did Not Wrongfully Foreclose

A necessary component of running a functional condo association is the collection of delinquent maintenance assessments. While many condo associations can yield account resolution through a demand letter and/or recording a lien against the unit, some delinquent accounts may require the initiation of foreclosure,  which is provided for by Michigan Condominium Act, MCL 559.101, et seq. Foreclosure can be a…
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November 1, 2016

Kevin Hirzel Collects $200,000 in Unpaid Condominium Assessments

On December 21, 2012, the City of Fenton acquired 52 undeveloped units in the Waters Edge Townhomes Condominium from the Genesee County Treasurer after a tax foreclosure sale. Pursuant to MCL 559.108, MCL 559.137 and the master deed, each of the units was assigned a percentage of value. Upon becoming a co-owner, by virtue of its acquisition of the units,…
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