Construction Defects & Developer Turnover

February 26, 2026

MCL 559.167: Developer Loses Title to Units not Labeled “Must be Built”

Disputes over undeveloped condominium units frequently turn on a narrow statutory question: does former MCL 559.167 apply when a developer fails to designate units as either “must be built” or “need not be built” in the master deed? Because undeveloped units can represent significant retained development value, the answer to that question carries serious financial and governance consequences for condominium…
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October 14, 2025

Working with Successor Developers: What Condo Associations Need to Know

Working with successor Developers: What Condo Associations Need to Know   Background: What is a Successor Developer? Many mortgage lenders, municipalities, and real estate investors are surprised to learn that they may suddenly be treated as a “successor developer” under Michigan condominium law after simply acquiring ownership of certain units in a condominium project. Under MCL 559.106(2), a “developer” is…
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September 11, 2024

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

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…
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September 5, 2024

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

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…
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April 18, 2024

Important Construction Contract Provisions for Major Repairs in Condominiums & HOAs

Important Construction Contract Provisions for Major Repairs in Condominiums & HOAs The overwhelming majority of condominium and homeowners associations will, at some point in time, need to enter into a large construction contract for a major repair or replacement. Complex construction contracts are more frequent in condominiums, where associations have a much larger number of items that they are responsible…
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