Construction Of The Condominium Association V Vistal Land & Home Development
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Kevin Hirzel of CMDA recently scored an important victory for Michigan condominium associations in Cove Creek Condominium Association v Vistal Land & Home Development, L.L.C., et al., Oakland County Circuit Court Case No. 16-155706-CH (Order Granting Summary Disposition, Dated February 10, 2017). The Oakland County Circuit Court held that the 2016 amendment to MCL 559.167 does not re-create “need not be built” units on common element land that is owned by the co-owners. The ruling will have an impact on any incomplete condominium projects that contain “need not be built” units and also meet one of the following two (2) requirements:
1. Construction of the condominium was commenced prior to September 21, 2006;
2. An amendment to the…show more content… In contrast, the 2016 amendments to MCL 559.167, which became effective on September 21, 2016, created a new “reversion” process to eliminate “need not be built” units after the expiration of the six (6) year or ten (10) year statutory time periods. Newly created MCL 559.167(4) now requires 2/3 of the co-owners that are in good standing to vote to approve a “reversion” of “need not be built” units to common elements by adopting a declaration that will be recorded in the register of deeds after the expiration of the statutory time periods. If 2/3 co-owner approval is obtained, the condominium association must then send the declaration to a developer or successor developer at its last known address. The developer or successor developer may withdraw the land on which the units were to be located or amend the master deed to make the units “must be built” within the sixty (60) day time period. If the developer or successor developer fails to withdraw the land or amend the master deed within sixty (60) days, the condominium association may record the declaration, which becomes effective upon recording and the right to construct the “need not be built” units will be eliminated.
Cove Creek Condominium Association v Vistal Land & Home Development, L.L.C., et al.
One of the most important questions surrounding the 2016 amendment to MCL 559.167 was whether or not 2016 PA 233