SENATE BILL No. 901

 

 

January 24, 2012, Introduced by Senator SCHUITMAKER and referred to the Committee on Judiciary.

 

 

 

     A bill to amend 1978 PA 59, entitled

 

"Condominium act,"

 

by amending section 144 (MCL 559.244), as added by 1982 PA 538.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 144. (1) A contract to settle by arbitration may be

 

executed by the developer and any claimant with respect to any

 

claim against the developer that might be the subject of a civil

 

action.

 

     (2) At the exclusive option of a purchaser, co-owner, or

 

person occupying a restricted unit under section 104b, the

 

developer shall execute a contract to settle by arbitration shall

 

be executed by the developer with respect to any claim that might

 

be the subject of a civil action against the developer, which claim

 

involves an amount less than $2,500.00, and arises out of or

 

relates to a purchase agreement, condominium unit, or project.


 

     (3) At the exclusive option of the association of co-owners,

 

the developer shall execute a contract to settle by arbitration

 

shall be executed by the developer with respect to any claim that

 

might be the subject of a civil action against the developer, which

 

claim arises out of or relates to the common elements of a

 

condominium project, if the and involves an amount of the claim is

 

$10,000.00 or less.

 

     (4) The period of limitations prescribed by law for the

 

bringing of a civil action shall apply equally applies to the

 

execution of a contract to settle by arbitration under this

 

section.

 

     (5) All costs of arbitration under this section shall be

 

allocated in the manner provided by the arbitration association.

 

     (6) A contract to settle by arbitration under this section

 

shall specify that the arbitration be conducted by the arbitration

 

association. shall conduct the arbitration.

 

     (7) The method of appointment of the arbitrator or arbitrators

 

of an arbitration under this section shall be pursuant to appointed

 

as provided by reasonable rules of the arbitration association.

 

     (8) Arbitration under this act shall proceed according to

 

sections 5001 to 5065 of Act No. 236 of the Public Acts of 1961,

 

being sections 600.5001 to 600.5065 of the Michigan Compiled Laws,

 

which the uniform arbitration act. The procedures of the uniform

 

arbitration act may be supplemented by reasonable rules of the

 

arbitration association.

 

     (9) An arbitration award shall be entered in an arbitration

 

under this section is binding on the parties to the arbitration.


 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 903                                        

 

          of the 96th Legislature is enacted into law.