QUESTION

Clarification Of Mich Condo Law

Asked on Jul 29th, 2016 on Residential Real Estate - Michigan
More details to this question:
Can a Association board impose all mrr cost of common elements (decks) to individual owners while maintaining absolute control? At the present time our by-laws state the association is responsible for mrr of all common elements. Would it be legal to ask for a by-law change when the Mich law states a association must establish a reserve fund for common element's?
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1 ANSWER

Real Estate Law Attorney serving Holland, MI at Cunningham Dalman
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The answers to your questions will turn on the provisions of your master deed and the Michigan Condominium Act.  The master deed allocates responsibility for common elements. The association is responsible for general common elements but limited common elements, a category that usually included decks, are handled differently in different master deeds.  The master deed could have unit owners responsible for maintenance, repair and replacement of decks while giving the association substantial say in when and what has to be done. Two key points of the condo act: an association must have a reserve fund (although the minimum level is just 10% of the current annual budget), and mrr responsibilities allocated to the association cannot be shifted to unit owners without an amendment to the master deed with 2/3 approval of the members and of the first mortgage holders. A vote at an association meeting would not be effective for that. Randy Schipper
Answered on Aug 01st, 2016 at 6:30 AM

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