Michigan Statewide Rule
Michigan Condominium & HOA Assessment Collection Rules
Key Facts
- Condo statute
- MCL 559.208 (Condominium Act)
- Foreclosure method
- By action or advertisement, like a mortgage
- Pre-foreclosure notice
- Recorded lien + 10-day mailed notice
- Redemption period
- 6 months (1 month if abandoned)
- Non-condo HOA basis
- Declaration + MCL 450.2101 et seq.
Summary
Michigan condominium associations get an automatic statutory lien for unpaid assessments under MCL 559.208, foreclosable like a real-estate mortgage. Michigan has no general non-condo HOA statute, so planned-community HOAs collect dues through their recorded declaration plus the Nonprofit Corporation Act (MCL 450.2101 et seq.).
559.208 Assessment lien; priority; foreclosure; bid; actions; receiver. Sec. 108. (1) Sums assessed to a co-owner by the association of co-owners that are unpaid together with interest on such sums, collection and late charges, advances made by the association of co-owners for taxes or other liens to protect its lien, attorney fees, and fines in accordance with the condominium documents, constitute a lien upon the unit or units in the project owned by the co-owner at the time of the assessment before other liens except tax liens on the condominium unit in favor of any state or federal taxing authority and sums unpaid on a first mortgage of record, except that past due assessments that are evidenced by a notice of lien recorded as set forth in subsection (3) have priority over a first mortgage recorded subsequent to the recording of the notice of lien. The lien upon each condominium unit owned by the co-owner shall be in the amount assessed against the condominium unit, plus a proportionate share of the total of all other unpaid assessments attributable to condominium units no longer owned by the co-owner but which became due while the co-owner had title to the condominium units. The lien may be foreclosed by an action or by advertisement by the association of co-owners in the name of the condominium project on behalf of the other co-owners.
Full Breakdown
Under the Michigan Condominium Act, MCL 559.208 makes unpaid assessments, interest, late fees, advances, attorney fees, and fines "a lien upon the unit" owned by the co-owner. The association may foreclose that lien "by an action or by advertisement" in the same manner as a real-estate mortgage. Before foreclosing it must record a notice of lien with the county register of deeds and mail it to the delinquent co-owner at least 10 days beforehand. The redemption period is 6 months from the sale, shortened to 1 month if the unit is abandoned, and a receiver may be appointed to collect rent. Non-condominium HOAs have no equivalent statute and rely entirely on their recorded declaration and MCL 450.2101 et seq.
Violations & Penalties
Unpaid condo assessments become a foreclosable lien enforced like a mortgage, by action or by advertisement, after a recorded notice of lien and 10-day mailed notice; the association also recovers interest, late fees, and attorney fees. Non-condo HOA remedies depend on the recorded declaration.
Frequently Asked Questions
Can a Michigan condo association foreclose on my unit for unpaid dues?
How long do I have to redeem after a condo foreclosure sale?
What law governs assessments in a non-condo Michigan HOA?
Sources
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