Michigan Condo & HOA Law

After sitting vacant and dilapidated for nearly three decades, the Book Cadillac Hotel in down town Detroit, which was once a symbol of the city’s rich heritage and history, has been renovated and restored to original glory, and is a vital piece of the puzzle in Detroit’s renaissance. Even though the economy in Michigan has sunk to all-time lows, and the city of Detroit is in political upheaval, the Westin Book Cadillac has sold most, if not all, of its available units.

The Westin Book Cadillac offers a hotel/residential complex with the top eight floors made up of luxury condominium units. The prices range anywhere from $280,000 to $1.5 million depending on the unit size. Most are two bedroom units with square footage ranging from 1250 to 1500, but there are larger penthouse suites at 4500 sq. ft.

While the purpose of my writing is not to sell units for the complex, we have been approached by several interested parties in making a once-in-a-lifetime purchase at the Westin Book Cadillac. The revitalization of the city’s most prestigious hotel is certainly not a cure all for Detroit’s problems, and hence the problems of the region, but it is a step in the right direction. In addition to the city’s entertainment district, there must be affordable and high-end housing to support a solid business district, because once the political turmoil is resolved, experts are looking for increased economic development within the downtown area.

Posted by Robert Meisner at 8:12 PM | Permalink

While speaking at a seminar a few weeks ago, a real estate agent, who happens to be heavily involved in the foreclosure market, approached me during the break and we began to discuss the current housing crisis in the State of Michigan. She stated that based on the number of homes in default that were yet to enter the foreclosure market, the current housing conditions were only going to get worse due to the large amount of inventory. I know many real estate experts feel that Michigan has not seen the bottom of the foreclosure tumult. With this thought in mind, it is imperative that home owners and buyers be on the lookout for mortgage fraud.

The FBI reports that mortgage fraud remains a very real problem as new scams involving “foreclosure rescue” are being offered on a daily basis. While not all foreclosure rescue programs are scams, you can avoid becoming a victim by following the five tips below:

1. Be wary of unsolicited contacts and pressure sales techniques.
2. Be wary of what you are signing.
3. Check the licenses of the people involved, making sure they are qualified.
4. If it sounds too good to be true, it probably is.
5. See a real estate lawyer before you sign anything.

Posted by Robert Meisner at 5:43 PM | Permalink

With the condition of the real estate market throughout the State of Michigan and the rate of foreclosures constantly rising, it is imperative that prospective buyers and sellers keep their eyes open for real estate fraud. There are three types of major fraud for which to be on the look-out. One such type of fraud is home equity/identity fraud. A forged deed is recorded to give the appearance that the perpetrator has acquired ownership of the property. The perpetrator uses the equity in the property as collateral to borrow money. No payments are made on the new loan(s) and the true owner could face foreclosure.

Another type of fraud involves home renovation and mortgage fraud. Contractors offer to do home improvement work or lenders offer a special "low interest financing" but do not deliver what was promised. Homeowners are left with partially completed substandard construction, or a mortgage payment that is higher than expected.

Finally, real estate investment foreclosure fraud involves investors being lured into buying property that is supposedly facing foreclosure for pennies on the dollar. Quit claim deeds and other documents are forged to give the appearance that a property is being sold in order to avoid foreclosure. Be on the look out for these types of fraudulent situations. It is best to contact a knowledgeable attorney before buying or selling your home.

Posted by Robert Meisner at 4:05 PM | Permalink

I recently heard from a potential buyer of a new condominium who stated that the developer put a clause in his purchase agreement saying it is binding only after the seller signs the agreement and that it is an irrevocable offer. Buyers of new condominiums should definitely be on the look out for such clauses and statements.

This may very well be in violation of the nine (9) day business rule of the Michigan Condominium Act, which allows a purchaser to withdraw from the condominium and, in my view, that agreement would be unenforceable. Too many purchasers sign agreements for the purchase of condos without obtaining the services of a knowledgeable condominium attorney to insure that the purchase agreement is in conformity with the condominium statutes and laws. Without proper advice they could find themselves faced with the prospect of wanting to be extricated from the agreement and find that they may not be able to do so because of an unconscionable clause. You are best advised to seek redress at your earliest convenience.

Posted by Robert Meisner at 3:53 PM | Permalink