Ethics

Condominium Boards and Ethics: The top 5 reasons that your Association needs a Code of Conduct

Condominium associations are largely governed by volunteer directors that receive little training with respect to their fiduciary duties and potential ethical issues that they may face. Each director has a fiduciary duty of care and duty of loyalty to act in the best interest of the association.  Unfortunately, many directors blur the lines between what…

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disclosure

Amendment to the ILSA Cuts Red Tape for Condominium Developers

The Federal Interstate Land Sales Full Disclosure Act (“ILSA”) was originally passed in 1968 in an effort to protect consumers from fraudulent land sales practices.  The ILSA previously required developers of certain types of condominiums to register new condominium projects with the Department of Housing and Urban Development (“HUD”) and to provide a property report to…

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home-inspector71011

What is a reserve study and does your Association need one?

A reserve study is an inspection of the common elements that is intended to analyze the repair and replacement needs of a Condominium or HOA. A reserve study serves two important purposes. First, a reserve study allows for an Association to accurately budget for major repairs over an extended period of time and avoid large additional…

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Bylaws

What are the top 5 signs that your Condominium Documents need to be amended in Michigan?

It is the responsibility of the Board to enforce the Master Deed and Bylaws. MCL 559.190 allows for the Condominium Bylaws to be amended based upon a vote of 2/3 of the Co-Owners.  In certain circumstances identified in MCL 559.190a, mortgagee approval is also required to amend the condominium documents.  Many Associations run into problems…

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The Top 3 Roadblocks Preventing Your Condominium Association From Obtaining FHA Certification

*This article may not reflect current changes being made by FHA which are in the process of being finalized by FHA at this time. Contact us to confirm current requirements. An FHA loan allows a buyer to purchase a condominium with a smaller down payment, and in some instances, at lower interest rates.  A purchaser can…

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Who is the Developer of my Condominium?

The Michigan Condominium Act, specifically MCL 559.106(2), defines a “Developer” of a Michigan Condominium as follows: (2) “Developer” means a person engaged in the business of developing a condominium project as provided in this act. Developer does not include any of the following (a) A real estate broker acting as agent for the developer in…

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EV

3 Tips for Handling a Co-Owner’s request to install an Electric Vehicle Charging Station

1. Review the Condominium Documents. An electric vehicle charging station (EVCS) will likely need to be located on the common elements or be hooked up to common elements. The condominium documents almost always require Board approval before a co-owner can make a modification to the common elements. The Board should review the condominium documents to determine…

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i-constructionlaw

A Roadmap to Discovering and Resolving Common Element Construction Defects

The improving real estate market has resulted in decreased home inventories, which has created an increased demand for new construction condominiums. Many potential purchasers will look to buy new construction condominium units with the expectation that the general common elements will be free from construction defects.  This expectation often arises from two common myths.  First,…

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Condo Hotel

Don’t take a vacation from the additional regulations that apply to Condominium Hotels

Michigan has been blessed with the Great Lakes which has resulted in numerous condominium projects being developed on or near the water that are intended for daily or weekly use by temporary occupants. These condominium projects are often referred to as “Condominium Hotels”, “Resort Condominiums”, “Condotels” or “Vacation Condominiums” despite the fact that the Michigan…

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Saving the Manager from Liability

By Robert Meisner By giving property managers the power to oversee a community, they become potentially liable to persons who may be injured, or for property that may be damaged. Consequently, property managers are often named as defendants in premises liability and other lawsuits. Therefore, it is imperative that property managers understand their potential for…

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