Construction Defects & Developer Turnover

When “As-Is” Doesn’t Mean “Anything Goes”: Developer Sues County Treasurer for Conveying Nonexistent Condominium Units Governmental entities and condominium and homeowners associations frequently dispose of foreclosed properties to private purchasers or developers through settlement agreements or deeds that include “as-is, without warranty” clauses. These provisions are intended to protect sellers from liability over the property’s physical condition. However, such language…

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 defined as “a person engaged in the business of developing a…

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…

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…

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 for maintaining. However, even smaller homeowners associations may have to contract…