MCL - Act 59 of 1978


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

The People of the State of Michigan enact:
Document Type Description
Section 559.101 Section Short title.
Section 559.102 Section Meanings of words and phrases.
Section 559.103 Section Definitions; A to C.
Section 559.104 Section Definitions; C.
Section 559.105 Section Definitions; C.
Section 559.106 Section Definitions; C to G.
Section 559.107 Section Definitions; L to M.
Section 559.108 Section “Master deed” defined.
Section 559.109 Section Definitions; P.
Section 559.110 Section Definitions; R to T.
Section 559.111 Section Offering residential condominium for sale; compliance with occupational code required.
Section 559.115 Section Construction or interpretation of act.
Section 559.121 Section Offering condominium unit or project for sale; liabilities and penalties; duties of developer; compliance by association of co-owners.
Section 559.131 Section Condominium project containing convertible area; contents of master deed.
Section 559.132 Section Expandable condominium project; contents of master deed.
Section 559.133 Section Contractable condominium project; contents of master deed.
Section 559.134 Section Leasehold condominium project; lease terms; required contents of master deed; termination of co-owner's leasehold interest by lessor prohibited.
Section 559.135 Section Easements; creation; description; contents.
Section 559.136 Section Addition of undivided interests in land as common elements; tenancy of co-owners; condominium unit on lands prohibited; description in master deed.
Section 559.137 Section Allocation 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 559.138 Section Creation of condominium units within convertible or additional lands; allocation of interests in common elements; amended master deed and condominium subdivision plan; revised schedule.
Section 559.139 Section Assignment and reassignment of limited common elements; application; amendment to master deed.
Section 559.140 Section Easement for encroachment.
Section 559.141 Section Conversion of convertible area into condominium units or common elements; amendment; identifying number; allocating portion of undivided interest; description of limited common elements.
Section 559.143 Section Expansion, contraction, or conversion of land or space; time of occurrence; consolidating master deed.
Section 559.144 Section Transferable easement as to common elements for purpose of making improvements.
Section 559.145 Section Offices, model units, and other facilities; maintenance; costs; restoration of facilities.
Section 559.146 Section Restrictions and covenants.
Section 559.147 Section Improvements or alterations by co-owners.
Section 559.147a Section Persons with disabilities; improvements or modifications by co-owner to facilitate access or movement; alleviation of hazardous conditions.
Section 559.148 Section Relocation of boundaries between adjoining condominium units.
Section 559.149 Section Subdivision of condominium units.
Section 559.150 Section Termination of condominium project or amendment of master deed by developer.
Section 559.151 Section Termination of condominium project by agreement of developer and unaffiliated co-owners.
Section 559.152 Section Advisory 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 559.153 Section Bylaws governing administration of condominium project; amendments; recording.
Section 559.154 Section Bylaws; mandatory provisions; allocation of votes; dispute, claim, or grievance; applicability of subsections (8), (9), and (10).
Section 559.155 Section Voiding service contract and management contract.
Section 559.156 Section Bylaws; permissible provisions.
Section 559.156a Section Displaying United States flag on condominium unit; applicability of section.
Section 559.157 Section Books, records, contracts, and financial statements; examination; audit or review; opt-out of requirements of subsection (2).
Section 559.158 Section Acquisition of title by foreclosure of first mortgage; liability for assessments.
Section 559.159 Section Submission of property with mortgage of record.
Section 559.160 Section Action on behalf of and against co-owners.
Section 559.161 Section Condominium unit as sole property.
Section 559.162 Section Ownership of condominium unit.
Section 559.163 Section Rights of co-owner.
Section 559.164 Section Conveyance and other instruments affecting title to condominium unit; description of unit; recordation.
Section 559.165 Section Compliance with master deed, bylaws, rules, and regulations.
Section 559.166 Section Condominium subdivision plan; preparation; signature and seal; contents; recording; structures and improvements to be completed by developer.
Section 559.167 Section Change in condominium project; amendment; replat of condominium subdivision plan; right of withdrawal; reversion of undeveloped land to general common elements; election, notice, and recording requirements; applicability of subsections (3) and (4); "undeveloped land" defined.
Section 559.168 Section Availability of condominium documents.
Section 559.169 Section Assessment of common expenses; contribution of co-owner.
Section 559.170 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.171 Section Notice of proposed action.
Section 559.171a Section Rules applicable to condominium project not served by public water and public sewers; submission of plan to department of public health; approval or rejection.
Section 559.172 Section Establishment 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 559.172a Section Recordation of master deed; creation of time-share unit; amendment of documents as material alteration.
Section 559.172b Section Air space over fee.
Section 559.173 Section Recordation 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 559.174 Section Delivery and retention of condominium subdivision plan; recordation of consolidating master deed.
Section 559.181 Section Service of process.
Section 559.181a Section Promotional material; labeling structure or improvement “need not be built.”
Section 559.182 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.183 Section Preliminary reservation agreement; use; condominium buyer's handbook; placing payment in escrow; cancellation of agreement; refund; treating payment as if made under purchase agreement.
Section 559.184 Section Section 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 559.184a Section Providing 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 559.185 Section Liquidated damages in case of default; actual damages; receipt of escrowed funds.
Section 559.186, 559.187 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.188 Section Offering 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 559.189 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.190 Section Amendment 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 559.190a Section Voting procedures.
Section 559.191 Section Recording of amendment to recorded condominium document required; copy to co-owner.
Section 559.192, 559.193 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.194 Section Title insurance policy.
Section 559.195 Section Revision of condominium subdivision plan; altering percentage of value; revisions in percentage of value per condominium unit.
Section 559.201-559.203 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.203a Section Repealed. 1983, Act 113, Imd. Eff. July 12, 1983.
Section 559.203b Section Section 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 559.204 Section Conversion condominium project; notice; termination of tenancy.
Section 559.204a Section Terminating tenancy of certain persons without cause prohibited; criteria; notice.
Section 559.204b Section Definitions; 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 559.204c Section Repealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
Section 559.204d Section Developer not required to offer extended lease arrangement; conditions; compliance.
Section 559.204e Section Legislative intent; examination of relevant information; recommendation.
Section 559.205 Section Reserve fund.
Section 559.206 Section Default by co-owner; relief.
Section 559.207 Section Action to enforce terms and provisions of condominium documents; action for injunctive relief or damages.
Section 559.208 Section Assessment lien; priority; foreclosure; bid; actions; receiver.
Section 559.209 Section Liability for torts.
Section 559.210 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.211 Section Sale or conveyance of condominium unit; payment and statement of unpaid assessments; liability for unpaid assessments.
Section 559.212 Section Renting 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 559.213 Section Financing.
Section 559.214 Section Homestead exemption.
Section 559.215 Section Action 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 559.221 Section Mobile home condominium project; establishment, operation, and regulation; compliance.
Section 559.222 Section Mobile home condominium project; disclosure.
Section 559.222a Section Mobile home conversion condominium project; notification of tenants; termination of tenancy.
Section 559.222b Section Extended lease arrangement.
Section 559.223 Section Mobile home condominium project; leasing agreements.
Section 559.224 Section Title to mobile home condominium site; undivided interest in common elements; removal of mobile home; sale of site.
Section 559.225, 559.226 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.227 Section Compliance by developer of mobile home condominium; prohibited requirements.
Section 559.231 Section Special assessments and property taxes.
Section 559.232 Section Construction lien; limitations.
Section 559.233 Section Eminent domain.
Section 559.234 Section Recreational facilities and other amenities; compliance.
Section 559.235 Section Successor developer.
Section 559.236 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.237 Section Obligations of developer not affected by transfer of interest.
Section 559.238 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.239 Section Complaint for nonpayment of assessments; answer; set off.
Section 559.240 Section Reproduction of document; certified reproduction or certification as evidence.
Section 559.241 Section Law, ordinance, or regulation of local unit of government; limitations.
Section 559.242 Section Promulgation of rules, forms, and orders; definition of terms.
Section 559.244 Section Contract to settle by arbitration; execution; option; period of limitations; allocation of costs; conduct; appointment of arbitrator; procedures; rules; arbitration award as binding.
Section 559.245 Section Complaint copy to developer; notice of available remedies.
Section 559.250 Section Discretionary powers of administrator; exercise.
Section 559.251-559.255 Section Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.256 Section Prohibited representations.
Section 559.257 Section Repealed. 1982, Act 538, Eff. Jan. 18, 1986;—1988, Act 109, Imd. Eff. Apr. 11, 1988.
Section 559.258 Section Prohibited conduct as misdemeanor; penalty; violation as separate offense; consecutive terms of imprisonment; aggregate fines; action by prosecuting attorney or department of attorney general.
Section 559.259 Section Injunction.
Section 559.260 Section Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.270 Section Effect of act and 1982 amendatory act; consummation of proceedings; continuation or institution of proceedings.
Section 559.271 Section Repeal of MCL 559.1 to 559.31.
Section 559.272 Section Effective date; requirements for disclosure statement.
Section 559.273 Section Applicability of amendatory act; applicability of certain subsections.
Section 559.274 Section Repealed. 2002, Act 283, Imd. Eff. May 9, 2002.
Section 559.275 Section Powers of administrator.
Section 559.276 Section Statute of limitations.