Category Archives: Liens

How to handle Community Association Collections in the aftermath of COVID-19

On March 10, 2020, Governor Gretchen Whitmer signed Executive Order 2020-4 and declared a State of Emergency in the State of Michigan related to the novel respiratory disease coronavirus (COVID-19). On March 13, President Donald Trump declared a National Emergency. On March 23, 2020, Governor Whitmer signed Executive Order 2020-21 (COVID-19) which imposed a temporary stay-at-home requirement, subject to certain exceptions. Executive Order

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Michigan Court of Appeals rules that the failure to hold annual meetings does not deprive a nonprofit corporation’s board of directors of authority to act on behalf of the corporation

Kevin Hirzel and Brandan Hallaq of Hirzel Law, PLC represented the Channel View East Condominium Association in this case. On July 2, 2019, the Michigan Court of Appeals issued an Opinion in Channel View East Condominium Association, Inc v Gregory V Ferguson, unpublished per curiam opinion of the Court of Appeals, issued July 2, 2019 (Docket No. 344149). The issue

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How to Avoid Construction Liens in Michigan Condominium Projects

Condominium associations hire contractors for capital improvements, repairs and for restoration work to the general and limited common elements, if appropriate. When a condominium association hires a contractor to provide labor, services or materials to the condominium and then fails to make payment for any reason, the contractor may record a construction lien against the condominium unit(s) in the condominium

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MICHIGAN COURT VALIDATES FORECLOSURE SALE UNDER THE DOCTRINE OF SUBSTANTIAL COMPLIANCE

On February 14, 2017, the Michigan Court of Appeals issued an unpublished opinion in the matter of Miehlke v Bayview Condominium Association of Manistee, et al.  The Miehlke case is important as a reminder that a defect in a foreclosure notice renders a foreclosure sale voidable rather than void and if a junior lien holder wishes to preserve its interest

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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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Encouraging Lenders to Foreclose: Don’t let your Condominium and HOA units sit vacant without collecting assessments

Even though the real estate market is gradually improving, condominium and homeowner communities are still faced with instances where a delinquent member abandons their unit/home and stops mortgage payments, but the lender does not foreclose.   While condominium associations often believe they are “stuck” in these types of situations as the unit/home owner is uncollectable, and the lender will not foreclose,

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A Co-owner Filed Bankruptcy, What Now?

    Condominium associations are solely dependent upon the collection of assessments from its members for their survival and to purchase and provide the goods and services necessary for the maintenance of the project for the benefit of its members.  Thus, when a Co-owner files bankruptcy, there is an understandable feeling that all is lost.  However, that is not always

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