Category Archives: Successor Developers

What is a Disclosure Statement and what is Required?

In Michigan, condominium developers are required to provide several documents to prospective purchasers of a condominium. Pursuant to MCL 559.106, “Developer” is defined as “a person engaged in the business of developing a condominium project as provided in this act”. In addition to original developers, the Condominium Act imposes similar requirements upon “Successor Developers”. MCL 559.235 states in part “As

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Michigan court rules in favor of condominium association in interpreting newly amended MCL 559.167 (SB 610)

Kevin Hirzel of CMDA recently scored an important victory for Michigan condominium associations in Cove Creek Condominium Association v Vistal Land & Home Development, L.L.C., et al., Oakland County Circuit Court Case No. 16-155706-CH (Order Granting Summary Disposition, Dated February 10, 2017).  The Oakland County Circuit Court held that the  MCL 559.167, as amended by 2016 PA 233, does not

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MCL 559.184: When can a purchaser withdraw from an agreement to purchase a new condominium?

Purchasing a new construction condominium is an exciting prospect for many people.  However, condominium purchasers are often provided with a large amount of information and requested to make numerous decisions in a short period of time.  In many instances, potential condominium purchasers are completely unfamiliar with condominium associations altogether.  While condominium living certainly has many potential benefits, some purchasers may

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Michigan Court of Appeals rules that deed restrictions recorded outside of the chain of title are unenforceable

In Petersen Financial LLC v Twin Creeks LLC, issued November 22, 2016 (Docket No. 329019) (Published Opinion) the Michigan Court of Appeals held that deed restrictions that were not within the chain of title were not enforceable. In 2000, Twin Creeks, LLC owned the complete parcel of land that was located in the Twin Creek Development (hereinafter “Twin Creek”). In

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The Michigan Condominium Act: Time for a Change

The Michigan Condominium Act was enacted in 1978 and is now over thirty-five years old. While significant amendments were made to the Michigan Condominium Act in 2001 and 2002, the Michigan Condominium Act does not currently meet the needs of various stakeholders as it is outdated and disorganized. In 2015 and 2016, the Michigan Legislature introduced five (5) bills that

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Senate Bill 610 Passes: Is the amendment to MCL 559.167 of the Michigan Condominium Act constitutional?

On June 22, 2016, Governor Snyder signed Senate Bill 610 after it underwent several amendments in both the house and senate. Senate Bill 610 will become effective as of September 21, 2016 and will amend MCL 559.167 to read as follows: Sec. 67. (1) A change in a condominium project shall be reflected in an amendment to the appropriate condominium

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Does a Successor Developer Have an Obligation to Pay Assessments under the Michigan Condominium Act?

The recent upswing in the real estate market has led to a resurgence of failed condominium projects in Michigan. During the economic downturn, many condominium developers went out of business and lost title to all of their units via a deed in lieu of foreclosure, foreclosure by a bank, tax foreclosure or bankruptcy leaving many condominiums unfinished.  As a result,

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