Michigan Condo & HOA Law

Robert M. Meisner and Meisner & Associates, P.C. are pleased to announce a significant victory for their condominium association client in a landmark court decision regarding the interpretation of the Michigan Condominium Act.

The Michigan Condominium Act requires that the first mortgage holder provide notice to a condominium association of an impending sheriff’s sale. In its first impression decision, Oakland County Circuit Court Judge Fred M. Mester held that due to the first mortgagee’s failure to notify the association of the impending sheriff’s sale as required by the Michigan Condominium Act, the first mortgagee took title to the unit subject to the condominium association’s lien for non-payment of assessments, inclusive of interest, late charges and attorney fees. The Michigan Condominium Act does not state the specific remedy that is available to the association when the mortgagee fails to give notice. This decision clarifies that remedy. This case was argued on behalf of the condominium association by Jennifer Cordon Thor of Meisner & Associates, P.C., and the decision allowed for the association to secure its lien upon the unit as well as to preserve its claim for interest, costs and attorney fees incurred in the collection of unpaid assessments as they are secured by the lien.

Condominium associations should be aware of any and all units that are delinquent in not only association dues, but also mortgage payments as this may affect units that may be delinquent in the condominium assessments.

Posted by Robert Meisner at 5:26 PM | Permalink

I recently spoke with an association whose management company strongly recommended a law firm for representation being that they have worked with this law firm on hundreds of projects. Once the association looked at the attorney’s fee agreement they discovered that the law firm would not pursue any claims against the management company, and this concerned the association in the event that such a dispute should occur.

While it is important and highly beneficial that the law firm and the management company have a good rapport, one must insure that the law firm is independent of the management company in such a way that it can resolve various disputes between the association and the management company should they occur including negotiating the management contract, which in my opinion is the most important contract that the association will sign. Some law firms are so dependent upon referrals from management companies that they will not get involved in any disputes with the management company which may undermine the ability of the association's counsel to effectively represent it in certain situations.

It is imperative that attorneys realize they serve and represent the condominium and/or community association rather than the management company. Associations are best advised to have an attorney who is independent enough from the management companies to be able to represent the association zealously without any interference from outside sources.

Posted by Robert Meisner at 11:09 AM | Permalink

I recently heard from a condominium association board who was interviewing an attorney for a construction defect case. They felt that the attorney himself had a great deal of experience, but they were concerned that he may not have been a leading attorney in court as it related to pursuing their claim. Their question to me was how can they be sure that the guy leading the team is the guy they want leading the team.

When an association is going through the attorney interview process, they should be bold enough to ask which attorney will be leading the case. Some law firms have persons who have experience in a particular area of law but who are not litigators or who will not appear in Court. Litigating is somewhat of an art; therefore, it is very important that the right attorney is handling the case as it pertains to in-court appearances. The flip side is that some law firms have litigation divisions which may have experience at dealing with judges and juries in the litigation process, but they may not have experience in the area of law of which you are desirous.

It is simply imperative that the proper questions must be asked when an association is going through the attorney hiring process. Do not be afraid to step on toes with your questioning – ultimately the association is the boss!

Posted by Robert Meisner at 1:00 PM | Permalink