HOA and condo assessments in Oakland County are levied under the association's bylaws and (for condos) the Michigan Condominium Act. Unpaid assessments — together with interest, late charges, advances, attorney fees, and fines — become a statutory lien on the unit under MCL 559.208 with priority over everything except tax liens and a first mortgage of record. The lien may be foreclosed by judicial action or, where authorized, by advertisement.
Annual budgets and per-unit assessments are typically set by the board, with special assessments above a threshold (commonly 10 percent of the annual budget) often requiring a member vote under the bylaws. For condominium associations, MCL 559.169 requires the association to maintain general common elements and authorizes assessments to fund that maintenance. Unpaid assessments accrue interest and late charges as the bylaws provide. After recording a notice of lien in the Oakland County Register of Deeds and serving it on the delinquent co-owner by first-class mail at least 10 days before commencing foreclosure (MCL 559.208(3)), the association may foreclose. Redemption is six months after foreclosure sale (one month if the unit is abandoned). On sale or conveyance, MCL 559.211 requires all unpaid assessments to be paid out of the sale price in preference over all other charges except taxes and first-mortgage payments. The escrow agent's failure to comply allows the association to recover from the seller, purchaser, and escrow agent.
Nonpayment exposes the owner to late charges, interest, attorney fees, and foreclosure of the unit. Michigan courts have consistently enforced the MCL 559.208 priority over junior mortgages, judgment liens, and later-recorded encumbrances. Owners who dispute charges should pay under protest and challenge the assessment, not withhold payment — failure to pay does not excuse foreclosure even if the underlying assessment is later reduced.
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