Landmark court decision regarding Michigan Condo Act
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.