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Act 59 of 1978
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CONDOMINIUM ACT

Act 59 of 1978

AN ACT relative to condominiums and condominium projects; to prescribe powers and duties of the administrator; to provide certain protections for certain tenants, senior citizens, and persons with disabilities relating to conversion condominium projects; to provide for escrow arrangements; to provide an exemption from certain property tax increases; to impose duties on certain state departments; to prescribe remedies and penalties; and to repeal acts and parts of acts.


History: 1978, Act 59, Eff. July 1, 1978 ;-- Am. 1980, Act 283, Imd. Eff. Oct. 10, 1980 ;-- Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983 ;-- Am. 1998, Act 36, Imd. Eff. Mar. 18, 1998


© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 559.101SectionShort title.
Section 559.102SectionMeanings of words and phrases.
Section 559.103SectionDefinitions; A to C.
Section 559.104SectionDefinitions; C.
Section 559.105SectionDefinitions; C.
Section 559.106SectionDefinitions; C to G.
Section 559.107SectionDefinitions; L to M.
Section 559.108Section“Master deed” defined.
Section 559.109SectionDefinitions; P.
Section 559.110SectionDefinitions; R to T.
Section 559.111SectionOffering residential condominium for sale; compliance with occupational code required.
Section 559.115SectionConstruction or interpretation of act.
Section 559.121SectionOffering condominium unit or project for sale; liabilities and penalties; duties of developer; compliance by association of co-owners.
Section 559.131SectionCondominium project containing convertible area; contents of master deed.
Section 559.132SectionExpandable condominium project; contents of master deed.
Section 559.133SectionContractable condominium project; contents of master deed.
Section 559.134SectionLeasehold condominium project; lease terms; required contents of master deed; termination of co-owner's leasehold interest by lessor prohibited.
Section 559.135SectionEasements; creation; description; contents.
Section 559.136SectionAddition of undivided interests in land as common elements; tenancy of co-owners; condominium unit on lands prohibited; description in master deed.
Section 559.137SectionAllocation to condominium unit of undivided interest in common elements proportionate to percentage of value assigned; statement, table, exhibit, or schedule in master deed; formula; basis of reallocation; allocating percentage of value to convertible space; alteration of undivided interest in common elements; partition of common elements.
Section 559.138SectionCreation of condominium units within convertible or additional lands; allocation of interests in common elements; amended master deed and condominium subdivision plan; revised schedule.
Section 559.139SectionAssignment and reassignment of limited common elements; application; amendment to master deed.
Section 559.140SectionEasement for encroachment.
Section 559.141SectionConversion of convertible area into condominium units or common elements; amendment; identifying number; allocating portion of undivided interest; description of limited common elements.
Section 559.143SectionExpansion, contraction, or conversion of land or space; time of occurrence; consolidating master deed.
Section 559.144SectionTransferable easement as to common elements for purpose of making improvements.
Section 559.145SectionOffices, model units, and other facilities; maintenance; costs; restoration of facilities.
Section 559.146SectionRestrictions and covenants.
Section 559.147SectionImprovements or alterations by co-owners.
Section 559.147aSectionPersons with disabilities; improvements or modifications by co-owner to facilitate access or movement; alleviation of hazardous conditions.
Section 559.148SectionRelocation of boundaries between adjoining condominium units.
Section 559.149SectionSubdivision of condominium units.
Section 559.150SectionTermination of condominium project or amendment of master deed by developer.
Section 559.151SectionTermination of condominium project by agreement of developer and unaffiliated co-owners.
Section 559.152SectionAdvisory committee of nondeveloper co-owners; establishment; meeting with condominium project board of directors; cessation; right to elect directors; formula; recording consolidating master deed; copy; “units that may be created” defined; time of sale to nondeveloper co-owner.
Section 559.153SectionBylaws governing administration of condominium project; amendments; recording.
Section 559.154SectionBylaws; mandatory provisions; allocation of votes; dispute, claim, or grievance; applicability of subsections (8), (9), and (10).
Section 559.155SectionVoiding service contract and management contract.
Section 559.156SectionBylaws; permissible provisions.
Section 559.156aSectionDisplaying United States flag on condominium unit; applicability of section.
Section 559.157SectionBooks, records, contracts, and financial statements; examination; audit or review; opt-out of requirements of subsection (2).
Section 559.158SectionAcquisition of title by foreclosure of first mortgage; liability for assessments.
Section 559.159SectionSubmission of property with mortgage of record.
Section 559.160SectionAction on behalf of and against co-owners.
Section 559.161SectionCondominium unit as sole property.
Section 559.162SectionOwnership of condominium unit.
Section 559.163SectionRights of co-owner.
Section 559.164SectionConveyance and other instruments affecting title to condominium unit; description of unit; recordation.
Section 559.165SectionCompliance with master deed, bylaws, rules, and regulations.
Section 559.166SectionCondominium subdivision plan; preparation; signature and seal; contents; recording; structures and improvements to be completed by developer.
Section 559.167SectionChanges in condominium project; amendment; replat of condominium subdivision plan; right of withdrawal.
Section 559.168SectionAvailability of condominium documents.
Section 559.169SectionAssessment of common expenses; contribution of co-owner.
Section 559.170SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.171SectionNotice of proposed action.
Section 559.171aSectionRules applicable to condominium project not served by public water and public sewers; submission of plan to department of public health; approval or rejection.
Section 559.172SectionEstablishment of condominium project; sale of condominium unit before master deed recorded prohibited; exception; substantial failure of master deed to comply with act; marketability of title.
Section 559.172aSectionRecordation of master deed; creation of time-share unit; amendment of documents as material alteration.
Section 559.172bSectionAir space over fee.
Section 559.173SectionRecordation of master deed and amendment; certification by treasurer; filing copy of master deed with local supervisor or assessing officer; filing architectural plans and specifications or affidavit with local unit of government.
Section 559.174SectionDelivery and retention of condominium subdivision plan; recordation of consolidating master deed.
Section 559.181SectionService of process.
Section 559.181aSectionPromotional material; labeling structure or improvement “need not be built.”
Section 559.182SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.183SectionPreliminary reservation agreement; use; condominium buyer's handbook; placing payment in escrow; cancellation of agreement; refund; treating payment as if made under purchase agreement.
Section 559.184SectionSection inapplicable to business condominium unit; withdrawal from signed purchase agreement; depositing and retaining funds in escrow; contents of purchase agreement; waiver of right of withdrawal; form.
Section 559.184aSectionProviding copies of listed documents to prospective purchaser of condominium unit; amendment to purchase agreement and condominium documents; signature on form as evidence; providing prospective purchaser of business condominium unit copy of recorded master deed; misleading statements; violation.
Section 559.185SectionLiquidated damages in case of default; actual damages; receipt of escrowed funds.
Section 559.186, 559.187Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.188SectionOffering for sale and entering into purchase agreement with respect to condominium unit proposed to be included within additional land of expandable condominium or within convertible land without recording amended master deed.
Section 559.189SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.190SectionAmendment of condominium documents; consent; void provision superseded by subsection (2); reservation of right to amend; notice of proposed amendments; costs and expenses; master deed amendment; affirmative vote.
Section 559.190aSectionVoting procedures.
Section 559.191SectionRecording of amendment to recorded condominium document required; copy to co-owner.
Section 559.192, 559.193Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.194SectionTitle insurance policy.
Section 559.195SectionRevision of condominium subdivision plan; altering percentage of value; revisions in percentage of value per condominium unit.
Section 559.201-559.203Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.203aSectionRepealed. 1983, Act 113, Imd. Eff. July 12, 1983.
Section 559.203bSectionSection inapplicable to business condominium unit; release of deposits or amounts retained in escrow; conditions; substantial completion; furnishing escrow agent with evidence of adequate security in place of retaining funds; certificate; notice to developer; release of interest paid on amounts escrowed; escrow agent deemed independent party; liability; certification by licensed professional architect or engineer; “licensed professional engineer or architect” defined.
Section 559.204SectionConversion condominium project; notice; termination of tenancy.
Section 559.204aSectionTerminating tenancy of certain persons without cause prohibited; criteria; notice.
Section 559.204bSectionDefinitions; applicability of section; notice of right to elect extended lease arrangement; election; extended lease arrangement provisions; number of years lease renewable; notice by developer entering into restricted lease arrangement; assignment, device, sublease, or transfer of lease by qualified senior citizen or person with disabilities prohibited; automatic termination of lease; liability of lessor violating rental restrictions; recovery of possession of restricted unit; transfer of restricted unit.
Section 559.204cSectionRepealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
Section 559.204dSectionDeveloper not required to offer extended lease arrangement; conditions; compliance.
Section 559.204eSectionLegislative intent; examination of relevant information; recommendation.
Section 559.205SectionReserve fund.
Section 559.206SectionDefault by co-owner; relief.
Section 559.207SectionAction to enforce terms and provisions of condominium documents; action for injunctive relief or damages.
Section 559.208SectionAssessment lien; priority; foreclosure; bid; actions; receiver.
Section 559.209SectionLiability for torts.
Section 559.210SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.211SectionSale or conveyance of condominium unit; payment and statement of unpaid assessments; liability for unpaid assessments.
Section 559.212SectionRenting or leasing condominium unit; disclosure; review of lease form; notice; compliance required; action by association upon noncompliance; notice of arrearage; deduction of arrearage and future assessments from rental payments.
Section 559.213SectionFinancing.
Section 559.214SectionHomestead exemption.
Section 559.215SectionAction by person or association adversely affected by violation of or failure to comply with act, rules, agreement, or master deed; costs; violation of MCL 559.121 or 559.184a; liability.
Section 559.221SectionMobile home condominium project; establishment, operation, and regulation; compliance.
Section 559.222SectionMobile home condominium project; disclosure.
Section 559.222aSectionMobile home conversion condominium project; notification of tenants; termination of tenancy.
Section 559.222bSectionExtended lease arrangement.
Section 559.223SectionMobile home condominium project; leasing agreements.
Section 559.224SectionTitle to mobile home condominium site; undivided interest in common elements; removal of mobile home; sale of site.
Section 559.225, 559.226Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.227SectionCompliance by developer of mobile home condominium; prohibited requirements.
Section 559.231SectionSpecial assessments and property taxes.
Section 559.232SectionConstruction lien; limitations.
Section 559.233SectionEminent domain.
Section 559.234SectionRecreational facilities and other amenities; compliance.
Section 559.235SectionSuccessor developer.
Section 559.236SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.237SectionObligations of developer not affected by transfer of interest.
Section 559.238SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.239SectionComplaint for nonpayment of assessments; answer; set off.
Section 559.240SectionReproduction of document; certified reproduction or certification as evidence.
Section 559.241SectionLaw, ordinance, or regulation of local unit of government; limitations.
Section 559.242SectionPromulgation of rules, forms, and orders; definition of terms.
Section 559.244SectionContract to settle by arbitration; execution; option; period of limitations; allocation of costs; conduct; appointment of arbitrator; procedures; rules; arbitration award as binding.
Section 559.245SectionComplaint copy to developer; notice of available remedies.
Section 559.250SectionDiscretionary powers of administrator; exercise.
Section 559.251-559.255Section Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.256SectionProhibited representations.
Section 559.257SectionRepealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.258SectionProhibited conduct as misdemeanor; penalty; violation as separate offense; consecutive terms of imprisonment; aggregate fines; action by prosecuting attorney or department of attorney general.
Section 559.259SectionInjunction.
Section 559.260SectionRepealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.270SectionEffect of act and 1982 amendatory act; consummation of proceedings; continuation or institution of proceedings.
Section 559.271SectionRepeal of MCL 559.1 to 559.31.
Section 559.272SectionEffective date; requirements for disclosure statement.
Section 559.273SectionApplicability of amendatory act; applicability of certain subsections.
Section 559.274SectionRepealed. 2002, Act 283, Imd. Eff. May 9, 2002.
Section 559.275SectionPowers of administrator.
Section 559.276SectionStatute of limitations.