Some homeowners’ association agreements over 40 could expire in March – CBS Detroit
CBS Detroit – For many who buy a condominium or a house in a community association, homeowners’ association fees don’t bother them. As the fees pay for external maintenance, improvements and services in the community such as a clubhouse and / or a swimming pool. Others regret these agreements because depending on who manages the association, everything, the color of your tulips, falls under the control of the association.
According to to an article in Hometown Life, a lame duck law passed in 2018, could cancel these association agreements if the documents governing the association are over 40 years old and certain conditions are met in March. In a conversation with Robert Meisner of the Meisner Law Group, who specializes in representing condominiums, homeowner associations and developers, said Michigan Public Act 572 could have an impact on some community associations in the state.
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However, although the law is not very clear, it could be interpreted to mean that people selling property that is part of a community association and the documents that govern the association are over 40 years old, the owner can withdraw its property from the association. This is done “by omitting the full reference to the constituting documents recorded in the deed of concession,” attorney Robert Meisner told Hometown Life.
For associations that come under this possible interpretation of public law 572, there are avenues that they can explore to also protect their interests. If before the expiration of the 40-year time limit in their bylaws, they could register a claim of interest. Which would keep their authority under the constituting documents of all units or houses in the original homeowners association agreement. Associations that do not act and allow the 40-year term to expire could end up with owners withdrawing from the agreements.
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The apparent problem is that many condominiums and communities share buildings, streets, and maintenance services among many residents. According to Meisner, a bill has been introduced to address some of the problems with the PA 572. House Bill 5260 according to Meisner defines (part e): “Prohibit the execution of any provision contained or referred to in a principal act registered for a co-ownership and its registered modifications. “
Meisner says this should be extended to include homeowner associations and their restrictions. However HB 5260 has not yet been adopted, and on June 2, 2020, it was mentioned the Ways and Means Committee.
For those who are concerned about what PA 572 might mean for their situation, they should consult their lawyer and stay informed as this may change.
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