Construction Defects & Developer Turnover

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…

Most homeowners associations require that owners within the subdivision be members of the association.  While these types of homeowner associations are the norm, they are not the only type of homeowners associations in existence.  A voluntary homeowners association is just that, an HOA where membership is voluntary.  But as a voluntary homeowners association, some members may believe that the association’s…