Michigan Compiled Laws — CONDOMINIUM ACT (Act 59 of 1978)

Short title.

This act shall be known and may be cited as the "condominium act".

Meanings of words and phrases.

For the purposes of this act, the words and phrases defined in sections 3 to 10 shall have the meanings respectively ascribed to them in those sections.

Definitions; A to C.

(1) "Administrator" means the department of consumer and industry services or an authorized designee. (2) "Affiliate of developer" means any person who controls, is controlled by, or is under common control with a developer. A person is controlled by another person if the person is a general partner, officer, member, d…

Definitions; C.

(1) "Condominium project" or "project" means a plan or project consisting of not less than 2 condominium units established in conformance with this act. (2) "Condominium subdivision plan" means the drawings and information prepared pursuant to section 66. (3) "Condominium unit" means that portion of the condominium pro…

Definitions; C.

(1) "Contractable condominium" means a condominium project from which any portion of the submitted land or buildings may be withdrawn in accordance with this act. (2) "Conversion condominium" means a condominium project containing condominium units some or all of which were occupied before the filing of a notice of tak…

Definitions; C to G.

(1) "Co-owner" means a person, firm, corporation, partnership, association, trust, or other legal entity or any combination of those entities, who owns a condominium unit within the condominium project. Co-owner includes land contract vendees and land contract vendors, who are considered jointly and severally liable un…

Definitions; L to M.

(1) "Leasehold condominium" means a condominium project in which each co-owner owns an estate for years in all or any part of the condominium project if the leasehold interests will expire naturally at the same time. (2) "Limited common elements" means a portion of the common elements reserved in the master deed for th…

“Master deed” defined.

"Master deed" means the condominium document recording the condominium project to which are attached as exhibits and incorporated by reference the bylaws for the project and the condominium subdivision plan for the project. The master deed shall include all of the following: (a) An accurate legal description of the lan…

Definitions; P.

(1) "Percentage of value" means the percentage assigned to each condominium unit in the condominium master deed. The percentage shall total 100% in the project. Percentages of value shall be determinative only with respect to those matters to which they are specifically deemed to relate either in this act or in the con…

Definitions; R to T.

(1) "Record" means to record pursuant to the laws of this state relating to the recording of deeds except that the provisions of the land division act, 1967 PA 288, MCL 560.101 to 560.293, do not control divisions made for any condominium project. (2) "Residential builder" is a person licensed as a residential builder…

Offering residential condominium for sale; compliance with occupational code required.

A residential condominium in this state shall not be offered for sale unless in compliance with article 24 or article 25 of the occupational code, Act No. 299 of the Public Acts of 1980, being sections 339.2401 to 339.2412 and 339.2501 to 339.2516 of the Michigan Compiled Laws.

Construction or interpretation of act.

This act shall not be construed or interpreted as to authorize or permit the incurring of indebtedness of the state contrary to the provisions of the state constitution of 1963.

Offering condominium unit or project for sale; liabilities and penalties; duties of developer; compliance by association of co-owners.

(1) A condominium unit located within this state shall not be offered for its initial sale in this state unless the offering is made in accordance with this act or the offering is exempt by rule of the administrator. An interest in a condominium unit located outside of this state which is offered for sale in this state…

Condominium project containing convertible area; contents of master deed.

If the condominium project contains any convertible area, the master deed shall contain the following: (a) A reasonably specific reference to the convertible area within the condominium project. (b) A statement of the maximum number of condominium units that may be created within the convertible area. (c) A general sta…

Expandable condominium project; contents of master deed.

If the condominium project is an expandable condominium project, the master deed shall contain the following: (a) The explicit reservation of an election on the part of the developer or its successors to expand the condominium project. (b) A statement of any restrictions on the election in subdivision (a), including, w…

Contractable condominium project; contents of master deed.

If the condominium project is a contractable condominium project, the master deed shall contain the following: (a) The explicit reservation of an election on the part of the developer or its successors to contract the condominium project. (b) A statement of the restrictions on that election, including, without limitati…

Leasehold condominium project; lease terms; required contents of master deed; termination of co-owner's leasehold interest by lessor prohibited.

(1) The terms of a lease in a leasehold condominium project shall not be unconscionable to prospective co-owners as determined at the time of signing the lease. (2) If the condominium project is a leasehold condominium project, then with respect to any ground lease or other leases the expiration or termination of which…

Easements; creation; description; contents.

Where fulfillment of the purposes of sections 31, 32, 33 or any other sections of this act reasonably requires the creation of easements, then the easements shall be created in the condominium documents or in other appropriate instruments and shall be reasonably described in the condominium documents. The easements sha…

Addition of undivided interests in land as common elements; tenancy of co-owners; condominium unit on lands prohibited; description in master deed.

The master deed may provide that undivided interests in land may be added to the condominium project as common elements in which land the co-owners may be tenants in common, joint tenants, or life tenants with other persons. A condominium unit shall not be situated on the lands. The master deed, or any amendment to mas…

(1) The master deed may allocate to each condominium unit an undivided interest in the common elements proportionate to its percentage of value assigned as provided in this act. (2) If an equal percentage of value is allocated to each condominium unit, the master deed may simply state that fact and need not express the…

Creation of condominium units within convertible or additional lands; allocation of interests in common elements; amended master deed and condominium subdivision plan; revised schedule.

Interests in the common elements shall not be allocated to condominium units to be created within convertible land or within additional land until the master deed is duly amended and an amended condominium subdivision plan depicting the new condominium units is recorded. The amendment to the master deed shall contain a…

Assignment and reassignment of limited common elements; application; amendment to master deed.

(1) Assignments and reassignments of limited common elements shall be reflected by the original master deed or an amendment to the master deed. A limited common element shall not be assigned or reassigned except in accordance with this act and the condominium documents. (2) Unless expressly prohibited by the condominiu…

Easement for encroachment.

To the extent that a condominium unit or common element encroaches on any other condominium unit or common element, whether by reason of any deviation from the plans in the construction, repair, renovation, restoration, or replacement of any improvement, or by reason of the settling or shifting of any land or improveme…

Conversion of convertible area into condominium units or common elements; amendment; identifying number; allocating portion of undivided interest; description of limited common elements.

(1) The developer may convert all or any portion of any convertible area into condominium units or common elements, including, without limitation, limited common elements, subject to the restrictions which the condominium documents may specify. (2) The developer shall promptly prepare, execute, and record an amendment…

Expansion, contraction, or conversion of land or space; time of occurrence; consolidating master deed.

An expansion, contraction, or conversion of land or space in accordance with this act and the condominium documents shall be deemed to have occurred at the time of recording of an amendment to the master deed embodying all essential elements of the expansion, contraction, or conversion. At the conclusion of expansion o…