The Michigan Condominium Act provides that sums assessed to a co-owner’s unit constitute a lien on the unit at the time they are assessed. If condo assessments remain unpaid, condominium associations typically record a notice of lien against the subject unit to perfect the security
In Yarmouth Commons Ass’n v Norwood, et al., 299 F. Supp.3d 862 (E.D. Mich., 2017), the United States District Court for the Eastern District of Michigan held that a prior recorded condominium lien had priority over a federal tax lien but only to the extent
The Michigan Court of Appeals decided several important issues in favor of Michigan condominium associations on December 14, 2017 in Ferry Beaubien LLC v Centurion Place on Ferry Street Condominium Association, unpublished opinion of the Court of Appeals, issued December 14, 2017 (Docket No. 335571).
In Michigan the question of whether the common elements of a condominium are taxable appears to be well-settled. In Paris Meadows, LLC v City of Kentwood, 287 Mich App 136; 783 NW2d 133 (2010), the Michigan Court of Appeals held that pursuant to Section 131
Many individuals and corporations, including community associations, are currently preparing their tax returns. For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604. A proper election under Revenue Ruling 70-604 can be
In Carola Condominium Association v Dustin Chappell, issued July 19, 2016 (Docket No. 325851) (Unpublished Opinion) the Michigan Court of Appeals held that the Wayne County Treasurer could not foreclose on common elements that were identified as “garage spaces” in the master deed. Carola dealt with a situation