DEPARTMENT OF LICENSING AND REGULATORY
AFFAIRS DIRECTOR’S OFFICE
CONDOMINIUMS

MICHIGAN CONDOMINIUM ACT RULES

(By authority conferred on the department of licensing and regulatory affairs by section 142 of 1978 PA 59, MCL 559.242, and Executive Reorganization Order Nos. 1996-2, 2003-1, 2008-4 and 2011-4, MCL 445.2001, 445.2011, 445.2025 and 445.2030)

PART 1. GENERAL PROVISIONS

R 559.101 Definitions.

Rule 101. (1) As used in the act and these rules:

  • "A 100-year flood" means a flood which has a 1% chance of occurring or being exceeded in any given
  • "Act" means Act No. 59 of the Public Acts of 1978, as amended, being S559.101 et seq. of the Michigan Compiled
  • "Advertising material" means a prospectus, pamphlet, circular, form letter, fact sheet, sign, newspaper or magazine ad, or any other sales literature or advertising communication addressed to, or intended for distribution to, prospective
  • "Floodplain" means that area of land adjoining a lake, watercourse, or similar body of water which will be inundated by a 100-year
  • "Imposition," with respect to purchasers or the public under section 154(c) of the act, means the existence of any of the following factors, among others:
  • Failure to comply with the act or these rules where such failure would endanger the viability of the
  • Failure to comply with local, state, or federal statutes, ordinances, regulations, or rules where such failure would endanger the viability of the
  • Financial or contractual arrangements which permit the developer to directly or indirectly convey, assign, or   otherwise   transfer   the developer's responsibility   to fulfill contractual obligations to the project or to the co-owners in derogation of section 137 of the
  • Publishing written or oral false or misleading statements concerning a condominium
  • "Land surveyor" means either a surveyor who is registered in this state as a land surveyor or a civil engineer who is registered in this state as a professional engineer.
  • "Major boundary corners" means those property corners which comprise the total proposed condominium development of a particular
  • "Minor boundary corners" means those property corners which are created by an individual phase of the project as it is developed in stages and does not mean a major boundary
  • "Unreasonable risk," with respect to prospective co-owners  under  section 154(c) of the act, means the existence of any of the following factors:
  • A prospective co-owner is likely to lose the money deposited        towards the purchase of a condominium
  • A prospective co-owner would not receive marketable title to the condominium
  • The common elements of a condominium project are not    completed      as advertised or stated in the master deed or disclosure
  • The developer does not pay the developer’s share      of      the      monthly assessments as required by the master deed or other legal
  • The developer enters into loans with, or borrows      money      from,      the association prior to the transitional control
  • The developer fails to keep adequate financial records     of     income and expenditures of the association of co-owners prior to the transitional control
  • The developer commingles funds of the co-owners'
  • Other actions which materially endanger the public  interest or the interest of condominium co-owners.

(2)           Terms defined in the act have the same meanings when used in these rules.

History: 1979 AC; 1985 AACS.

R 559.102 Name of proposed condominium project; reservation.

Rule 102. The name of a proposed condominium project shall not be such as to confuse or mislead the public.

History: 1979 AC; 1985 AACS.

R 559.103--R 559.105 Rescinded.

History: 1979 AC; 1985 AACS.

R 559.106 Disclosure booklet.

Rule 106. (1) The disclosure booklet required by section 84a(1)(C)  of the act  to  be distributed to prospective purchasers shall be  "The Condominium Buyers  Handbook," as published by the administrator.

(2)       "The Condominium Buyers Handbook" shall be distributed to purchasers who sign a purchase agreement 9 business days before a purchase agreement becomes a binding agreement, pursuant to section 84 of the act.

 

History: 1979 AC; 1985 AACS.

 

R 559.107 Advertising, sales material, and other representations.

Rule 107. (1) Advertising, sales material, and oral representations shall be truthful and accurate and designed to fully inform the public about the project. Such materials shall not be presented in such a way as to create a false impression about the nature, status, quality, or cost of a proposed condominium project or its location.

(2)       A developer or any agent shall not represent to any person that the administrator has inspected or approved the quality, value, or price of any unit.

History: 1979 AC.

R 559.108 Rescinded.

History: 1979 AC; 1985 AACS; 2014 AACS.

R 559.109 Termination of condominium project; notice to interested parties.

Rule 109. (1) Pursuant to sections 50 and 51 of the act, notification of termination shall be given to all parties interested in the project, including the following:

  • Escrow agents.
  • Land contract vendors.
  • Project
  • Project
  • Prospective purchasers who have deposited funds.
  • Any other person who holds an outstanding interest in the condominium

(2)       Such notice shall be made by first-class mail to the person's last known address.

History: 1979 AC; 1985 AACS.

R 559.110 Rescinded.

History: 1979 AC; 1985 AACS; 2014 AACS.

R 559.111 Shared recreational facilities.

Rule 111. Pursuant to section 134 of the act, a recreational facility which is to be enjoyed by condominium co-owners and third parties shall, at a minimum, comply with the following provisions:

  • When the recreational facilities are  owned  by  the  condominium co-owners and are to be used by a third party, all of the following conditions shall be met:
  • Disclosure shall be made to  all prospective          purchasers       that      the recreational facilities will be shared with a third
  • The master deed shall define who is entitled to use recreational
  • The master deed shall set forth the   appropriate   financial obligations of all the parties
  • When recreational facilities are owned by a third party and condominium co-owners are obligated to  help  financially  support  the recreational facilities, all of  the following conditions shall be met:
  • Disclosure shall be made to prospective purchasers of their financial obligations and responsibilities as co-owners to support the recreational facilities. Such disclosure shall include information regarding all fees charged and compensation
  • The condominium co-owners shall have an equitable vote, as set forth in the disclosure statement, as to the operation and management of the recreational
  • An arbitration clause to settle disputes upon consent of the parties shall be included in the condominium legal
  • The necessary easements shall be
  • The books and records of the recreational facilities shall be kept separate from other operations and shall be made available for inspection by the co-owners.

History: 1979 AC; 1985 AACS.

R 559.112 Condominium project warranties.

Rule 112. Condominium project warranties shall comply with state and federal law. The terms of any warranty offered in connection with the sale of a condominium unit shall be clearly disclosed. The name, address, and telephone number of the individual responsible for fulfilling warranty claims shall be stated in the warranty.

History: 1979 AC; 1985 AACS.

PART 2. PERMIT TO TAKE RESERVATIONS

R 559.201 Rescinded.

History: 1979 AC; 1985 AACS.

PART 3. CONTENTS OF A MASTER DEED

R 559.301 Minimum requirements.

Rule 301. (1) A master deed shall contain a statement referring to the condominium subdivision plan and the condominium   bylaws   and   shall incorporate them by reference.

  • A master deed shall contain the mandatory provisions required by sections 8, 9, 37(3), and 69 of the
  • Where applicable, a master deed shall contain the provisions in sections 31, 32, 33, 34(2), 35, 36, 37(1) and (2), 41, 45, 46, 47, 49, and 121 of the
  • A master deed shall describe in detail all general and limited common  Pursuant to section 39  of  the  act,  limited  common elements shall be assigned in the master deed, unless the power to amend the master deed to make such assignments is reserved to the developer. The master deed shall designate the manner in which the common elements will be assessed.
  • Pursuant to sections 35, 40, and 44 of the act, a master deed shall provide for  the following easements:
    • Reciprocal easements for a change of boundaries of units due to shifting, settling, or moving of a building in the condominium
    • Easements for the installation, maintenance, and service for all utilities, including light, heat, power, sewer, water, and
    • If the project is not served by an  existing  municipal  water  and sewage  system, and any component of the system is not located on property to be owned by the condominium, an easement shall  be  obtained,  or  other suitable  arrangement  made,  for  the  repair  and  maintenance  of  such components, so long as the system continues to be used by the project.
    • Such other easements as may be necessary for continued use and enjoyment of the

History: 1979 AC; 1985 AACS.

PART 4. CONDOMINIUM SUBDIVISION PLAN

R 559.401 General requirements.

Rule 401. (1) The condominium subdivision plan shall be an exhibit   to the   master deed. The drawings which constitute the plan shall be prepared by an architect, land surveyor, or civil engineer licensed to practice in this state. More than 1 such individual may prepare different segments of the same condominium subdivision plan.

  • Each sheet shall contain the name of the condominium and the name and address of the firm responsible for the preparation of that sheet and shall bear a legible seal and signature of the individual responsible for the preparation of that sheet. A complete condominium subdivision plan shall be comprised of all of the following:
    • Cover
    • Survey
    • Site plan.
    • Utility
    • Building floor
    • Section plans, where
    • Floodplain plan, where applicable.
    • Where appropriate, individual plans may be combined, if this does not impair legibility.
  • Pursuant to section 66(2)(j) of the act, all proposed structures and improvements shown on the drawings shall be labeled either "must be built" or "need not be built." This shall be done on the site plan for all proposed structures and improvements, other than utilities, and on the utility plan for all utilities. When labeling a portion of structure “need not be built" and the remainder “must be built,” or vice versa, the labeling shall be done on the applicable floor plans and
  • When a condominium subdivision plan is drawn, it shall, at  a minimum, comply with all of the following provisions:
    • Be drawn to scale.
    • All lettering and numbering shall be mechanical lettering not less than 0.14 inches high. Freehand lettering is not
    • Be drawn on sheets measuring 24 inches by 36
    • The top shall be either the 24- or 36-inch length with the binding margin on the top or left side, respectively.
    • All margins from the edge of the sheet to the drawings shall be 1/2 inch, except the binding margin, which shall be 2
    • The general direction "north" shall be placed toward the top or left-hand side of the sheet.
    • Each sheet shall be numbered consecutively, beginning with the number 1. The use of suffixes, such as a, b, c, shall only be acceptable when adding supplemental sheets after the initial
    • Lots of platted subdivisions which fall within the project boundary shall be shown by dashed lines and dotted numbers. Platted subdivisions which fall contiguous to the project boundary shall be shown by solid lines and
    • Indicate the scale of each drawing by means of a graphic bar
    • Show the name of the condominium on each sheet, agreeing exactly with the name used in the master
    • Use match lines when the survey plan, site plan, or floor plans are shown on more than 1 sheet. The symbol for match lines shall be different from those used for property lines or utility
    • All signatures shall be in black
    • Include a composite plan, to show the relationship of the various sheets to each other, when more than 3 sheets are required to do a survey, site, floodplain, or utility
    • Each sheet shall be identified as “proposed,  dated          " or "as-built dated      ."

History: 1979 AC; 1985 AACS.

R 559.402 Contents.

Rule 402. A complete condominium subdivision plan shall be comprised of the following:

  • A cover sheet, showing all of the following:
  1. The name and location of the condominium project.
  2. Prescribed wording as indicated in section 66(3) of the act   for assignment of a condominium subdivision plan number by the county register of deeds.
  • Prescribed wording stating the exhibit letter or number as used in the master deed.
  1. The name and address of the developer.
  2. A complete and accurate written property description.
  3. A comprehensive sheet index.
  • A survey plan, showing all of the following:
  • A surveyor's certificate prescribed as follows:

SURVEYOR'S CERTIFICATE

I,                                                    (Name of Individual), registered land surveyor or registered civil engineer of the state of Michigan, hereby certify:   That   the   subdivision plan known as                         (name)   county condominium subdivision plan no.

                                                       , as shown on the accompanying drawings, represents a survey on the ground made under my direction (thatthere are no existing encroachments upon the lands and property   herein described) or (that there are existing encroachments upon the lands and property described as shown).

That the required monuments and iron markers have been located in the ground   as required by rules promulgated under section 142 of Act No. 59 of the Public Acts of 1978.

That the accuracy of this survey is within the limits required by the rules promulgated under section 142 of Act No. 59 of the Public Acts of 1978.

That the bearings, as shown, are noted on survey plan as required by the rules promulgated under section 142 of Act No. 59 of the Public Acts of 1978.

 

(Date)                        (Signature)

 

Individual Name--Printed Registered land surveyor or Registered civil engineer Registration No.      

(fill in)

(Firm name--if any)

(Seal)                              (Firm address)

 

 

  • All easements and encroachments, whether of benefit or burden, dimensioned and
  • All property boundaries complete with bearings, distances, and curve data necessary to completely traverse the parcel or
  • All property corners monumented as prescribed in R 407(1)(a).
  • A survey bench mark shown by symbol and described with its elevation referenced to an official bench mark of the national geodetic survey  of the United States geological survey, which are based on the national geodetic vertical datum of 1929. If the bench mark is more than 200 feet from the total site, a permanent bench mark shall be established within that distance in accordance with the generally accepted standards for establishment of such a bench
  • Identification of all contiguous properties or
  • In the case of expandable condominium projects, all land on which the  balance of the project may be located shall be shown,  complete  with distances,  bearings, and  curve  data,  identified  as  proposed  future development. This land shall be shown in relationship to the phase being currently
  • A location map of the project with its relationship to the surrounding area.
  • A floodplain plan when the condominium lies within or abuts a floodplain area, showing all the following:
  • The location of all condominium buildings and
  • The floodplain shall be shown within a contour line as established by the department of natural
  • The floodplain contour line shall be shown to the point where  it intersects  with the boundaries  of  the  condominium  project  or  to  its limits, whichever is   greater, and be dimensioned to the nearest whole foot from the street or traverse
  • The contours over the entire project shown at 2-foot
  • The floodplain area shall be clearly labeled with words "floodplain area." A common element or a condominium unit, other than a campsite or a marina unit, shall not be constructed where it may be   reasonably anticipated that the structures will be damaged by flooding. Where the proposed condominium project is within a floodplain, the administrator may require a statement from a registered engineer that the subject property is not in apparent present or   future   danger   of   flooding, including herewith an explanation of the factors leading to that
  • A site plan showing all of the following:
  • (i) Specific locations of all property corners, condominium buildings or units, and improvements by a coordinate system established in the form of latitudes and departures in north-south and east-west directions from an established point, preferably a property
  • All coordinate values referenced to either the Michigan coordinate system, prescribed by Act No. 9 of  the  Public  Acts  of  1964,  being SS 54.231 to 54.239 of  the Michigan Compiled Laws, or to a city coordinate system, if one exists, or to a monument set during  the  survey,  if  such coordinate systems have not been
  • The relationship of the condominium units to the condominium property boundaries by either showing 2 coordinates on the same line,  as prescribed in (ii)  above, on 2 corners of the building or unit, or by 1 coordinate on the building or unit corner, and by a bearing related to the true meridian or a previously  established
  • All general and limited common elements and approximate
  • A utility plan showing all of the following:
  • All utility lines for gas, electricity, water, steam, telephones, storm sewer, sanitary sewer, or services of a similar
  • A legend stating the source from which the location information was
  • The location and identity of all utility
  • The size of the various utility
  • Floor plans, when the use is intended for residential, office, industrial or business, or any other type, with the ownership  contained within a building or  buildings, showing all of the following:
  • All structures and the specific location of each condominium unit in the project, which shall be by a system of dimensional descriptions and angle
  • Each floor of each building, including all general and limited common elements and approximate
  • Each unit's boundaries clearly distinguishable by a heavy black
  • The area of each condominium
  • A number assigned to each
  • Sections, when the use is intended for residential,  office, industrial or  business, or another  type  with  the  ownership  contained within a building, or  buildings, showing all of the following:
  • The required number of views necessary to accurately identify the vertical boundaries of the condominium
  • Dimensioned all vertical boundaries as referenced to an elevation established at any floor, based on the national geodetic vertical datum of
  • All general and limited common
  • All unit boundaries identified by a heavy black

History: 1979 AC.

R 559.403 Mobile home condominium subdivision plan; contents.

Rule 403. (1) A          mobile home condominium subdivision plan shall be composed of all of the following in compliance with R 559.402(1) (a) to (e):

  • A cover
  • Survey
  • Floodplain plan, where
  • Utility
  • Site plan.
  • In addition to the requirements of subrule (1)(a) to   (e)   of   this rule, show all of the following:
    • Sufficient dimensions and angle measurements to accurately identify the area of fee simple ownership contained within a given description on top of the ground or foundation, either on or within the mobile home
    • If basements are provided as part of a mobile home condominium unit, a section shall be provided which complies with R 559.402(1)(g) and a floor plan of that  basement area shown which complies with 402(1)(f).

History: 1979 AC; 1985 AACS.

R 559.404 Campsite condominium subdivision plan; contents.

Rule 404. (1) A campsite condominium subdivision plan shall be composed of a cover sheet, survey plan, floodplain plan, where applicable, utility plan, and site plan, complying with R 559.402(1)(a), (b), (c), (d), and (e).

  • In addition to the aforementioned requirements, show sufficient dimensions and angle measurements to accurately identify the area of fee simple ownership contained within a given description on top of the
  • The survey plan shall be shown complying with all requirements of R 559.402(1)(b), and each individual condominium campsite shall have its boundaries identified on site by setting iron or steel stakes 1/2 inch in diameter and 18 inches in length, at all corners of the campsite. These stakes shall be so identified on the survey plan.

History: 1979 AC.

R 559.405 Marina condominium subdivision plan; contents.

Rule 405. (1) A marina condominium subdivision plan shall be composed of all of the following in compliance with R 559.402(1) (a) to (e):

  • A cover
  • Survey
  • Floodplain plan, where
  • Utility
  • Site plan.
  • In addition to the requirements of subrule (1)(a) to   (e)   of   this rule, show all of the following:
    • Sufficient dimensions and angle measurements to accurately identify the area of fee simple ownership contained within a given description on top of the water and adjacent to a slip, dock, or similar
    • The elevation of the adjacent dock or docks referenced to or on a bench mark on the national geodetic datum of 1929 or international Great Lakes
    • The all-time high- and low-water elevations for the Great Lakes and high- and low-water elevations, of record, for inland

History: 1979 AC; 1985 AACS.

R 559.406 Recreational facilities.

Rule 406. A recreational facility which is part of the condominium or is being added to the condominium shall be illustrated on the site plan, floodplain plan, and utility plan in the actual location of the   facility or, in the case of a proposed facility, the proposed location shall be shown and so identified. Actual floor plans of the facility, if it involves a structure, are not required until it is added to the project and are only required if the facility has limited common elements          or unit fee simple ownership which would require a floor plan to illustrate the differences and locations.

History: 1979 AC; 1985 AACS.

R 559.407 Survey requirements.

Rule 407. With respect to the minimum requirements  for  the  survey  of  a proposed condominium project, monuments shall be  located  in  the  ground according  to the following requirements:

  • Monuments consisting of iron or steel bars, or pipes not less than 1/2 inch in diameter and 36 inches in length, and completely encased in concrete not less than 4 inches in diameter shall be placed at all major boundary
  • Monuments consisting of iron or steel bars, or pipes not less than 1/2 inch in diameter and 18 inches in length, or other approved markers shall be placed at all minor boundary
  • Monuments shall be located in the  ground  at  all   angles   in    the boundaries of the  condominium  project  boundary;  at  all  points  of  curvature,  points  of tangency, points of  compound  curvature,  points   of reverse curvature, and angle   points in the side lines  of  streets  and alleys; and at all angles of an intermediate  traverse
  • If a location of a monument is clearly impractical, it is sufficient to place a reference monument as specified in subdivisions (a) and (e) of this rule. It shall be placed nearby and the precise location thereof shall be clearly indicated on the survey plan of the condominium subdivision plan and referenced to the true
  • If a point required to be monumented is on a bedrock  outcropping  or other  hard surface, a steel rod, not less than 1/2 inch in diameter, shall be drilled and grouted into solid material to a minimum depth of 8 inches and clearly labeled on the survey
  • All required monuments shall be placed flush with the ground, where practicable, in accordance with the final
  • All required monuments shall be placed before the date of the surveyor's certificate as required by R 559.402(b)(i) unless undesirable conditions prohibit such placement. When the monuments are not placed before the date of the surveyor's certificate, they shall be placed within 1 year from the date of recording. The surveyor's certificate shall also be revised accordingly to reflect the nonplacement of monuments and a date by which they will be
  • The relative error of closure of the surveyed land shall be not more than the ratio of 1 part in 5,000.
  • The bearings shall be expressed in relation to the true meridian or a previously established meridian or bearing, and a   statement   by   the surveyor on the survey plan shall state the source of information used in obtaining the bearings
  • Easements shall be established where necessary on access roads which provide access to the proposed condominium. When joint use of an access road to the project is intended, an agreement for maintenance shall also be

History: 1979 AC; 1985 AACS.

R 559.408 Identification of a unit, common element, and amenity.

Rule 408.  A unit, limited common element, and amenity       shall be identified as follows:

  • Each unit within a proposed condominium project shall be numbered consecutively, beginning with number 1, throughout the entire
  • Units within a multi-phase development shall be numbered consecutively throughout all phases or
  • The same unit number shall not be repeated for different    units    in the same
  • A unit number shall be shown within the area of ownership     for    that unit on the condominium subdivision
  • A structure or improvement, other than those containing units to be conveyed, shall be identified by its

History: 1979 AC.

R 559.409 Superseding consolidated subdivision plan.

Rule 409. Upon completing and recording the last phase of a multiphase project, whether the original plan submissions were done by amendment or separate phases, a superseding consolidated subdivision plan shall be prepared and recorded. The superseding consolidated subdivision plan shall combine all previously recorded condominium subdivision plans in the following manner:

  • For projects recorded by amendments, all of the following provisions apply:
  • Eliminate all reference to replants, but retain the condominium subdivision plan number as originally
  • Include the exhibit number or letter as used in the consolidated master
  • Eliminate all reference to amended sheets in the sheet
  • Redate each sheet.
  • In all other aspects, these drawings shall be the same as the last recorded submission for that particular
  • For projects recorded in separate phases,  all  of  the  following provisions apply:
  • Eliminate all reference to phase, section, segment, and
  • Include the exhibit number or letter as used in the consolidated master
  • Redate each sheet.
  • Use the prescribed wording indicated as follows for reference of the previously assigned condominium subdivision plan numbers: A replat    of       county condominium subdivision plans. Nos. ,           . (As previously assigned by the county register of deeds).
  • Use the prescribed wording as indicated in section 66(3) of the act for assignment of a new condominium subdivision plan number for the
  • Remove all boundaries on the site, survey, utility, and floodplain plans which are now contiguous due to the consolidation of
  • Revise the property description to be 1 description of the consolidated property.

History: 1979 AC; 1985 AACS.

R 559.410 Amendments and replats.

Rule 410. (1) Each condominium subdivision may be amended to reflect   changes in the boundaries of a condominium unit, or the addition or elimination of condominium units which are constituted as a replat, as specified in section 67 of the act. An amendment may also reflect changes in the boundaries of the land, correction of errors, as-built plans, and changes in common elements.  All changes in the originally recorded condominium plans shall be made in accordance with the following requirements:

  • Each revised sheet shall be
  • Only the revised sheets and cover sheet shall be
  • The sheets being replaced and any new sheets shall be indicated in the sheet index.

(2)       An amendment or a replat  to  an  originally  recorded  condominium  subdivision plan may be prepared by the original land surveyor, architect, or civil engineer or any other  such  professional  licensed  to  practice  in Michigan. If a  different professional, other  than  the  original  person, prepares the amendment  or  replat and  does  not  intend  to  take  full responsibility for the entire sheet, that sheet shall not be excluded or amended out of the complete set of plans. The items that the amending or replatting professional is responsible for shall be clearly indicated   on  that amendment.

History: 1979 AC; 1985 AACS.

R 559.411 As-built condominium subdivision plans.

Rule 411. (1) Not later than 1 year after completion  of  construction  of  all buildings and improvements represented on the proposed condominium subdivision plans, the developer shall cause an  architect,  engineer,  or surveyor  to  prepare   as- built  drawings  depicting  the  project   as constructed. These drawings shall be   recorded immediately  following  their completion. These plans shall contain as-built  data of all the following:

  • The coordinate values of the various buildings or
  • All dimensions of the various buildings and
  • The location of all permanent
  • The relationship of the buildings to a true
  • All general and limited common
  • Area of each unit.
  • Floor
  • Each sheet of the as-built condominium subdivision plan shall be labeled "as-built dated ," and the notations representing  the project as proposed shall be
  • A condominium subdivision plan which is comprised entirely of existing buildings and  for  which  as-built  data  were  used  in  the preparation of the plans   need not have as-built drawings

History: 1979 AC; 1985 AACS.

R 559.412 Rescinded.

History: 1979 AC; 1985 AACS.

R 559.413 Easements and dedicated thoroughfares.

Rule 413. A thoroughfare which  is  proposed  to  be  dedicated  to  the  municipality, county, or state shall be designated on  the  condominium subdivision  plans as "proposed dedication." An easement providing  adequate ingress and egress  over the proposed dedication shall be provided and shown on the condominium subdivision plan in all cases, unless the road was dedicated before recordation of the master deed or subject amendment. An easement required for establishment and  operation of  a  condominium project,  whether  for  benefit  or  burden,  shall  be recorded  before recordation of the master deed or subject amendment.  Description  of the easement may be made by reference to the liber and page number where it is recorded. However, the easement shall be drawn  on  the  survey  plan  and shall   conform to the description as recorded.

History: 1979 AC; 1985 AACS.

R 559.414 Rescinded.

History: 1979 AC; 1985 AACS. Eff.

R 559.415 Recordation of the condominium subdivision plan.

Rule 415. A condominium subdivision plan shall be recorded in the county in which the project is located. If a project crosses county lines, it shall be recorded in both counties. The condominium  subdivision  plan  number shall be assigned by the county  in consecutive sequence,  beginning  with number 1, according to section 66(3) of the  act. The county shall  show the number which it has assigned in the spaces provided in the master  deed and condominium subdivision plan, and shall keep an  accurate  record of those numbers. The condominium subdivision plan shall be photographically reduced, by the developer, to approximately 8 1/2  inches  by  14 inches,  and   submitted   for   recording.   The   same   condominium subdivision plan in a size measuring 24 inches by 36 inches  shall  be delivered to, and retained by, the county register of deeds office. Either plan which is retained by the county register of deeds office shall be available for inspection upon request.

History: 1979 AC.

 

PART 5. BYLAWS IN A MASTER DEED

R 559.501 Condominium bylaws generally.

Rule  501.  (1)  The  condominium  bylaws  shall  be  attached  to,  and   incorporated by reference in, the master deed.

  • The condominium bylaws shall contain the mandatory  provisions  of section  54 of the act and as set forth in this
  • An amendment to, or a change in, the condominium  bylaws  shall  be   effective upon recordation and the master deed or bylaws shall so
  • If the association of co-owners administering the affairs of the condominium project is a corporation,  the  corporation's  bylaws  are  hereinafter  designated  corporate bylaws or association bylaws and shall not be confused with condominium bylaws, hereinafter referred to as "bylaws."
  • The bylaws shall state all of the following:
    • The name and location of the condominium
    • The purpose of the bylaws.
    • Whether the project is a residential  condominium,  an  industrial  condominium,  a  commercial  condominium,  a  professional  condominium,   a  campsite condominium, a marina condominium, a mobile  home  condominium,  or  other type of
    • Any restrictions affecting the use of individual units or common

History: 1979 AC; 1985 AACS.

R 559.502 Administration and membership provisions.

Rule 502. (1) The bylaws shall designate the association of co-owners as  responsible for the management and administration of the common elements, property, easements, and the  affairs  of  the  condominium  project.  The association of co-   owners may form or organize an entity  for  managing  the property or otherwise   provide for independent management of the  project.The bylaws shall indicate the form  of the association of co-owners; that is, whether it was created and will operate as a  profit or nonprofit corporation, a partnership, or an unincorporated association.

  • The bylaws may  provide  reasonable  provisions  to  facilitate  the  development and sale of the project by the developer until completion of the
  • The bylaws shall comply with section 52 of the
  • The bylaws shall provide that membership in the association  of co-owners  shall be limited to persons who own  1  or  more   units   in   the condominium project and each co-owner shall be a member of the association of co-owners.

History: 1979 AC; 1985 AACS.

R 559.503 Rescinded.

History: 1979 AC; 1985 AACS. Eff.

R 559.504 Books; inspection; cost of annual audit.

Rule 504. The bylaws shall provide that the books shall be maintained in  accordance with section 57 of the act. The cost of the annual audit shall be an expense of administration. The right  of  inspection  of  the  books   by co-owners may be limited to  a reasonable time and place specified in the bylaws.

History: 1979 AC.

R 559.505 Copies of condominium documents; availability.

Rule 505. The bylaws shall provide that the association of co-owners shall keep current copies of the recorded master deed and amendments  and  all  other  condominium documents available  for   inspection   in   accordance with section 68 of the act.

History: 1979 AC; 1985 AACS.

R 559.506 Destruction or condemnation of property.

Rule 506. The bylaws shall set forth the rights of the co-owners and the procedures to be followed in case of partial or complete  destruction,  or partial or complete taking  by condemnation.

History: 1979 AC.

R 559.507 Mortgages.

Rule 507. The bylaws shall provide that a co-owner who mortgages his or her unit shall notify the association of co-owners of the name and address of the mortgagee, and that the association of co-owners shall maintain such information in a book entitled, "Mortgages of Units." The association  of co-owners may notify the mortgagee  of  unpaid assessments due from the co-owner of such unit. The association of co-owners      shall            furnish an individual mortgagee with complete information on all insurance carried by the association of co-owners.

History: 1979 AC.

R 559.508 Insurance.

Rule 508. The bylaws shall provide that the association of co-owners shall carry insurance for fire and extended coverage, vandalism and malicious mischief, and, if applicable, liability and workers'  disability compensation, pertinent to the ownership, use, and  maintenance  of  the premises and that all premiums for insurance carried  by the  association shall be an expense of administration. The  association  may   carry   other insurance coverage,  including  cross-coverage  for  damages  done  by  1 co-  owner to another.

History: 1979 AC.

R 559.509 Structural repair or modification of unit; access to unit by designated person.

Rule 509. (1) The bylaws shall provide that a co-owner who desires to make a structural repair or modification of his or her unit shall  first obtain written consent of  the association of co-owners. The association shall not consent if such repair or modification may  jeopardize  or  impair the structural soundness or safety, or both, of  the project.

(2)       The  bylaws  shall  provide  that  any  person   designated   by   the association of co-owners shall have access to each unit  as  necessary during  reasonable  hours,  upon  notice  to  the  occupant  thereof,  for maintenance, repair, or replacement of any   of the common elements therein or accessible therefrom, and shall have access to each unit without notice for making emergency repairs necessary to prevent damage to other units or the common elements, or both.

History: 1979 AC.

R 559.510 Compliance with act, master deed and bylaws, the articles of association, and rules and regulations adopted by association.

Rule 510. The bylaws shall provide, in accordance with section 65 of the act, that  all present and future co-owners, tenants, and any other persons or occupants using the facilities of the project in any manner are subject to, and shall comply with, the act, the master deed and bylaws, and the articles of association, and rules and  regulations adopted by the association of co-owners.

History: 1979 AC.

R 559.511 Reserve fund for major repairs and replacement of common  elements.

Rule 511. (1) The bylaws shall provide that the association of co-owners shall maintain a reserve fund for major repairs and replacement of common elements in accordance  with  section  105  of  the  act.   The   co-owners' association shall maintain   a reserve fund which, at a minimum, shall be equal to 10% of the association's current annual budget on a noncumulative basis.

  • The funds contained in the reserve fund required to be established by section 105 of the act shall only be used for major repairs  and replacement of common
  • There shall be set aside the amount of funds required by subrule (1) of this rule by the time of the transitional control date. The developer shall be liable for any deficiency in this amount at the transitional control
  • The following statement shall be contained in the bylaws: "The minimum standard required by this section may prove to be inadequate for  a particular project. The association of co-owners should carefully analyze their condominium project to determine if a greater amount  should  be   set aside, or if additional reserve funds   should be established for other "

History: 1979 AC; 1985 AACS.

R 559.512 Resolution of disputes, claims, or grievances.

Rule 512. The bylaws shall provide for procedures, in accordance  with sections  106 and 107 of  the  act,  to  resolve  any   dispute,   claim,   or grievance arising out of,  or relating  to,  the  interpretation  or  the application of the master deed, the bylaws, or the  management  agreement, if any. The bylaws  may  provide  for   arbitration   or   other  methods  of resolving  disputes,  claims,  or  grievances  arising  among  or between co-owners or between co-owners and the association of co-owners or between the association and a management company. If arbitration  is   requested   by the parties to such a dispute, claim, or grievance, the dispute, claim, or  grievance  may  be submitted to arbitration and the parties shall accept the arbitrator's decision as final and binding. The bylaws may provide for the application of the  commercial  arbitration  rules, as amended, of the American arbitration association.

History: 1979 AC.

R 559.513 Assessments.

Rule 513. The bylaws shall set  forth  detailed  information  concerning  assessments. The method by which assessments  are  to  be  made  shall   be included   and shall provide that the board of directors of the association shall establish an annual budget.

History: 1979 AC.

R 559.514 Liens.

Rule 514. (1) The bylaws may outline the procedures to  be  followed  in the event of the attachment of a mechanic's lien, and shall make reference to the provisions of section 132 of the act.

(2)       The bylaws shall outline the procedures to be followed when a co-owner's unpaid assessments owed to the association become a lien on the co-owner's unit and shall contain the provisions in sections 108 and 111 of the act.

History: 1979 AC.

R 559.515 Leasing.

Rule 515. The bylaws shall contain provisions  for  leasing   condominium units   and shall contain provisions pursuant to section 112 of the act.

History: 1979 AC; 1985 AACS.

PART 6. APPROVAL OF A MASTER DEED

R 559.601--R559.607 Rescinded.

History: 1979 AC; 1985 AACS.

PART 7. PERMIT TO SELL AND SALES

R 559.701--R 559.704 Rescinded.

History: 1979 AC; 1985 AACS. Eff.

PART 8. ESCROW

R 559.801--R 559.803 Rescinded.

History: 1979 AC; 1985 AACS.

PART 9. DISCLOSURE STATEMENT

R 559.901 Disclosure statement generally.

Rule 901. (1) Pursuant to section 84a of the act, the developer shall prepare a disclosure statement at the time of recordation of the  master deed. A disclosure  statement shall not be used unless  it  meets  the requirements set forth in the act and these rules. A disclosure statement shall be amended before further use if there is a material change in the information contained therein.

(2)       Pursuant to sections 84 and 84a of  the  act,  the  developer  shall furnish   a  copy of a current, effective disclosure statement to  a prospective condominium  purchaser not less than 9 business days before a binding purchase agreement.

History: 1979 AC; 1985 AACS.

R 559.902 Format.

Rule 902. (1) The disclosure statement shall be prepared in  pamphlet form or in  any similar form in which the pages are  securely  fastened together. Any typing,  printing, or duplication process may be employed if it produces clear and legible copies.

  • The items required to be disclosed by R 559.903 shall, unless otherwise indicated, be disclosed under separate headings.
  • The pages of the disclosure statement shall be consecutively numbered beginning after the cover page and the table  of  contents  with page 1. All the pages  shall be the same

History: 1979 AC; 1985 AACS.

R 559.903 Information to be included in the disclosure statement.

Rule 903. (1)  The  disclosure  statement  shall  fully   and   accurately disclose  those facts or characteristics about a condominium project and a developer which are deemed material. "Material," as used  in  the  preceding sentence,  refers  to  those  factors which might reasonably affect a prospective purchaser's decision to accept or reject the offer to purchase the condominium unit. Where material information is not known by the developer, such facts shall be stated with a brief explanation.

  • The information presented in the disclosure statement shall not obscure the facts,  encourage  a  misinterpretation  of  the   facts,   or otherwise mislead the reader.  No information  is   to   be   incorporated   by reference to an extrinsic source which is  not readily available to an ordinary prospective
  • The language  of  the  disclosure  statement  shall  be   readily understandable by a lay person. Legal phraseology, technical terms, and terms of art are to be avoided where possible.
  • Brevity is desirable to the extent consistent with the purpose of the disclosure statement and the rules governing its preparation. Thus, the contents of the disclosure statement shall be limited to factual
  • The disclosure statement shall contain a cover page and a table of contents which identifies the sections and subsections of the disclosure
  • Material information about the developer and the condominium project within the following categories shall be included in  the  disclosure  statement,  when applicable:
    • Condominium project
    • The size and scope of the condominium
    • The condominium project budget and
    • The condominium project recreational
    • Condominium project
    • The developer's background and
    • Legal proceedings involving the condominium project or the
    • Condominium association management
    • Other material information as will inform purchasers about the unique characteristics of the particular condominium
  • Pursuant to section 101 of the act, the disclosure statement shall contain an explanation of the possible liability of co-owners  under section 58 of the act. A statement similar to the following shall be included within the disclosure statement: "Co-owner liability. Section 58 of the Michigan condominium act provides:  If  the holder of  a  first mortgage or other purchaser of a condominium unit obtains  title  to  that unit by foreclosing that mortgage, the holder of the first mortgage  or other  purchaser is not liable for unpaid assessments which  are  chargeable against that unit  and which had become due  prior  to    These unpaid assessments are  common expenses which are collectable from all  unit owners, including the holder of  the first mortgage who has obtained title to the unit through foreclosure."
  • If a project is a conversion  condominium  project,  the  developer shall  disclose the following additional information:
    • The year  when  construction  was  completed  on   the   building   or buildings in the
    • A statement, if known, of the condition of the main components of the  building, including the plumbing, heating, electrical, roofing,  and  structural components. If the condition  of  the  plumbing,  heating, electrical, roofing and  structural components is unknown, the developer shall fully disclose that

History: 1979 AC; 1985 AACS.

PART 10. FINANCIAL INFORMATION

R 559.1001--R 559.1006 Rescinded.

History: 1979 AC; 1985 AACS.

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