Sec. 52.
(1) An advisory committee of nondeveloper co-owners shall be established either 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 1/3 of the units that may be created or 1 year after the initial conveyance of legal or equitable title to a nondeveloper co-owner of a unit in the project, whichever occurs first. The advisory committee shall meet with the condominium project board of directors for the purpose of facilitating communication and aiding the transition of control to the association of co-owners. The advisory committee shall cease to exist when a majority of the board of directors of the association of co-owners is elected by the nondeveloper co-owners.
(2) Not later than 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 25% of the units that may be created, at least 1 director and not less than 25% of the board of directors of the association of co-owners shall be elected by nondeveloper co-owners. Not later than 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 50% of the units that may be created, not less than 33-1/3% of the board of directors shall be elected by nondeveloper co-owners. Not later than 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 75% of the units that may be created, and before conveyance of 90% of such units, the nondeveloper co-owners shall elect all directors on the board, except that the developer shall have the right to designate at least 1 director as long as the developer owns and offers for sale at least 10% of the units in the project or as long as 10% of the units remain that may be created.
(3) Notwithstanding the formula provided in subsection (2), 54 months after the first conveyance of legal or equitable title to a nondeveloper co-owner of a unit in the project, if title to not less than 75% of the units that may be created has not been conveyed, the nondeveloper co-owners have the right to elect, as provided in the condominium documents, a number of members of the board of directors of the association of co-owners equal to the percentage of units they hold and the developer has the right to elect, as provided in the condominium documents, a number of members of the board equal to the percentage of units which are owned by the developer and for which all assessments are payable by the developer. This election may increase, but does not reduce, the minimum election and designation rights otherwise established in subsection (2). Application of this subsection does not require a change in the size of the board as determined in the condominium documents.
(4) If the calculation of the percentage of members of the board that the nondeveloper co-owners have the right to elect under subsection (2), or if the product of the number of members of the board multiplied by the percentage of units held by the nondeveloper co-owners under subsection (3) results in a right of nondeveloper co-owners to elect a fractional number of members of the board, then a fractional election right of 0.5 or greater shall be rounded up to the nearest whole number, which number shall be the number of members of the board that the nondeveloper co-owners have the right to elect. After application of the formula contained in this subsection, the developer has the right to elect the remaining members of the board. Application of this subsection does not eliminate the right of the developer to designate 1 member as provided in subsection (2).
(5) A consolidating master deed and plans showing the condominium as built shall be recorded not later than 1 year after completion of construction in order to consolidate all phases or amendments of a condominium project. A copy of the recorded consolidating master deed shall be provided to the association of co-owners.
(6) As used in this section, “units that may be created” means the maximum number of units in all phases of the condominium project as stated in the master deed.
(7) For purposes of calculating the timing of events described in this section, conveyance by a developer to a residential builder, even though not an affiliate of the developer, is not considered a sale to a nondeveloper co-owner until such time as the residential builder conveys that unit with a completed residence on it or until it contains a completed residence which is occupied.
History: 1978, Act 59, Eff. July 1, 1978 ;-- Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983 ;-- Am. 2000, Act 379, Imd. Eff. Jan. 2, 2001
Structure Michigan Compiled Laws
Act 59 of 1978 - Condominium Act (559.101 - 559.276)
Section 559.101 - Short Title.
Section 559.102 - Meanings of Words and Phrases.
Section 559.103 - Definitions; a to C.
Section 559.104 - Definitions; C.
Section 559.105 - Definitions; C.
Section 559.106 - Definitions; C to G.
Section 559.107 - Definitions; L to M.
Section 559.108 - “Master Deed” Defined.
Section 559.109 - Definitions; P.
Section 559.110 - Definitions; R to T.
Section 559.115 - Construction or Interpretation of Act.
Section 559.131 - Condominium Project Containing Convertible Area; Contents of Master Deed.
Section 559.132 - Expandable Condominium Project; Contents of Master Deed.
Section 559.133 - Contractable Condominium Project; Contents of Master Deed.
Section 559.135 - Easements; Creation; Description; Contents.
Section 559.140 - Easement for Encroachment.
Section 559.144 - Transferable Easement as to Common Elements for Purpose of Making Improvements.
Section 559.146 - Restrictions and Covenants.
Section 559.147 - Improvements or Alterations by Co-Owners.
Section 559.148 - Relocation of Boundaries Between Adjoining Condominium Units.
Section 559.149 - Subdivision of Condominium Units.
Section 559.150 - Termination of Condominium Project or Amendment of Master Deed by Developer.
Section 559.153 - Bylaws Governing Administration of Condominium Project; Amendments; Recording.
Section 559.155 - Voiding Service Contract and Management Contract.
Section 559.156 - Bylaws; Permissible Provisions.
Section 559.156a - Displaying United States Flag on Condominium Unit; Applicability of Section.
Section 559.158 - Acquisition of Title by Foreclosure of First Mortgage; Liability for Assessments.
Section 559.159 - Submission of Property With Mortgage of Record.
Section 559.160 - Action on Behalf of and Against Co-Owners.
Section 559.161 - Condominium Unit as Sole Property.
Section 559.162 - Ownership of Condominium Unit.
Section 559.163 - Rights of Co-Owner.
Section 559.165 - Compliance With Master Deed, Bylaws, Rules, and Regulations.
Section 559.168 - Availability of Condominium Documents.
Section 559.169 - Assessment of Common Expenses; Contribution of Co-Owner.
Section 559.170 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.171 - Notice of Proposed Action.
Section 559.172b - Air Space Over Fee.
Section 559.181 - Service of Process.
Section 559.181a - Promotional Material; Labeling Structure or Improvement “Need Not Be built.”
Section 559.182 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.185 - Liquidated Damages in Case of Default; Actual Damages; Receipt of Escrowed Funds.
Section 559.186, 559.187 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.189 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.190a - Voting Procedures.
Section 559.192, 559.193 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.194 - Title Insurance Policy.
Section 559.201-559.203 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.203a - Repealed. 1983, Act 113, Imd. Eff. July 12, 1983.
Section 559.204 - Conversion Condominium Project; Notice; Termination of Tenancy.
Section 559.204c - Repealed. 1985, Act 183, Imd. Eff. Dec. 18, 1985.
Section 559.204e - Legislative Intent; Examination of Relevant Information; Recommendation.
Section 559.205 - Reserve Fund.
Section 559.206 - Default by Co-Owner; Relief.
Section 559.208 - Assessment Lien; Priority; Foreclosure; Bid; Actions; Receiver.
Section 559.209 - Liability for Torts.
Section 559.210 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.214 - Homestead Exemption.
Section 559.222 - Mobile Home Condominium Project; Disclosure.
Section 559.222b - Extended Lease Arrangement.
Section 559.223 - Mobile Home Condominium Project; Leasing Agreements.
Section 559.225, 559.226 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.227 - Compliance by Developer of Mobile Home Condominium; Prohibited Requirements.
Section 559.231 - Special Assessments and Property Taxes.
Section 559.232 - Construction Lien; Limitations.
Section 559.233 - Eminent Domain.
Section 559.234 - Recreational Facilities and Other Amenities; Compliance.
Section 559.235 - Successor Developer.
Section 559.236 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.237 - Obligations of Developer Not Affected by Transfer of Interest.
Section 559.238 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.239 - Complaint for Nonpayment of Assessments; Answer; Set Off.
Section 559.240 - Reproduction of Document; Certified Reproduction or Certification as Evidence.
Section 559.241 - Law, Ordinance, or Regulation of Local Unit of Government; Limitations.
Section 559.242 - Promulgation of Rules, Forms, and Orders; Definition of Terms.
Section 559.245 - Complaint Copy to Developer; Notice of Available Remedies.
Section 559.250 - Discretionary Powers of Administrator; Exercise.
Section 559.256 - Prohibited Representations.
Section 559.260 - Repealed. 1982, Act 538, Imd. Eff. Jan. 17, 1983.
Section 559.271 - Repeal of MCL 559.1 to 559.31.
Section 559.272 - Effective Date; Requirements for Disclosure Statement.
Section 559.273 - Applicability of Amendatory Act; Applicability of Certain Subsections.
Section 559.274 - Repealed. 2002, Act 283, Imd. Eff. May 9, 2002.