Michigan MCL 559.208: Condo Assessment Lien and Foreclosure

Quick Answer

MCL 559.208 (Section 108 of the Condominium Act, 1978 PA 59) gives a Michigan condominium association a lien on a unit for unpaid assessments, interest, late charges, fines, attorney fees and certain advances. The lien can be foreclosed "by an action or by advertisement," but not until a notice of lien is recorded with the register of deeds and mailed to the owner at least 10 days before the foreclosure starts. The redemption period is 6 months from the sale (1 month if the property is abandoned).

At a Glance

What the Law Says

What the lien covers

Under subsection (1), these sums "constitute a lien upon the unit or units in the project owned by the co-owner at the time of the assessment":

• Assessments that are unpaid, together with interest on them.
• Collection and late charges.
• Advances the association made for taxes or other liens to protect its lien.
• Attorney fees.
• Fines "in accordance with the condominium documents."

If the owner holds more than one unit, the lien on each unit is the amount assessed against that unit plus "a proportionate share of the total of all other unpaid assessments attributable to condominium units no longer owned by the co-owner but which became due while the co-owner had title."

Priority

The lien comes "before other liens" with two exceptions: tax liens in favor of a state or federal taxing authority, and "sums unpaid on a first mortgage of record." There is a carve-back: "past due assessments that are evidenced by a notice of lien recorded as set forth in subsection (3) have priority over a first mortgage recorded subsequent to the recording of the notice of lien." See our page on first-mortgage foreclosure and prior assessments for how this interacts with MCL 559.158.

How foreclosure works

• The lien "may be foreclosed by an action or by advertisement by the association of co-owners in the name of the condominium project on behalf of the other co-owners."
• Foreclosure follows the laws on foreclosing real estate mortgages by advertisement or judicial action, except that the association is entitled to "reasonable interest, expenses, costs, and attorney fees" to the extent the condominium documents provide.
• The redemption period "is 6 months from the date of sale unless the property is abandoned, in which event the redemption period is 1 month from the date of sale."

The notice of lien (a precondition)

Subsection (3) says a foreclosure "may not be commenced without recordation and service of notice of lien." The notice must set out:

• The legal description of the unit or units.
• The name of the co-owner of record.
• The amounts due at the date of the notice, "exclusive of interest, costs, attorney fees, and future assessments."

It must be in recordable form and signed by an authorized representative of the association. It is recorded with the register of deeds in the county where the project sits and served on the owner "by first-class mail, postage prepaid, addressed to the last known address of the co-owner at least 10 days in advance of commencement of the foreclosure proceeding."

Other tools in the section

• Bid-in: the association, "unless prohibited by the master deed or bylaws," may bid at the sale and then acquire, hold, lease, mortgage or convey the unit.
• Money judgment: an action for a money judgment "may be maintained without foreclosing or waiving the lien," and a damages claim and foreclosure "may be combined in 1 action."
• Receiver: a receiver may be appointed in a foreclosure action and may be empowered to take possession of the unit "if not occupied by the co-owner," and to lease it and collect and apply the rent.
• Continuing liability: the owner and any purchaser, grantee, successor or assignee is liable for assessments that become due "before expiration of the period of redemption," plus interest, advances, costs and attorney fees.

What This Means in Practice

For boards

The notice of lien is the step most easily missed. Because the statute says a foreclosure "may not be commenced" without it, the order of operations matters: record, mail, then wait at least 10 days. Our reading is that the 10 days run from the mailing, which is how the sentence is structured, but confirm the counting method with counsel.

Fines are on the list only "in accordance with the condominium documents." The statute does not itself create a fining power or a hearing procedure, so whether a fine can be rolled into the lien depends on what your master deed and bylaws authorize.

The recovery of foreclosure fees is conditional too: the association is entitled to them "to the extent the condominium documents provide." Boards should check that their bylaws contain that language before assuming fees are recoverable.

For owners

The lien attaches for sums assessed while the owner held title, and the owner (and any successor) remains liable for assessments that come due until the redemption period ends. A money-judgment suit does not give up the lien, so an association can sue for the debt and still keep its foreclosure option.

Timing math

• Notice of lien recorded and mailed: day 0.
• Earliest commencement of foreclosure: at least 10 days after mailing.
• Redemption: 6 months from the sale date, or 1 month if the property is abandoned.

What the statute does not say

Section 559.208 does not set a minimum delinquency amount or a required number of late notices before the lien notice. It does not define "abandoned." It does not describe the mechanics of a sale by advertisement or by judicial action, which come from separate foreclosure law that we did not review for this page (our reading is that those procedures, including publication and sale timing, are in the general foreclosure statutes, so confirm with counsel). Open question: how a court counts the 10 days when the mailing address is out of date. The statute only says "last known address."

Timeline

Related Michigan Law

• MCL 559.158: a first-mortgage foreclosure purchaser is not liable for earlier assessments. See first-mortgage foreclosure and prior assessments.
• MCL 559.211: assessments paid out of sale proceeds. See resale statement and unpaid assessments.
• MCL 559.157: books and records. See books, records and annual audit.
• Michigan Condominium Act 2026: A Guide for Boards
• HOA Violation Enforcement in Michigan

Board Checklist

• Confirm your bylaws authorize late charges, fines and collection costs before adding them to a delinquency.
• Check whether your master deed or bylaws prohibit the association from bidding at a foreclosure sale.
• Prepare the notice of lien with the legal description, owner of record and amount due (excluding interest, costs, fees and future assessments).
• Have an authorized representative sign it in recordable form and record it in the county register of deeds.
• Keep proof of first-class mailing to the owner's last known address.
• Calendar the 10-day wait and the redemption period (6 months, or 1 month if abandoned).
• Have counsel choose between foreclosure by advertisement, judicial action, or a money-judgment suit.

Frequently Asked Questions

What can a Michigan condo association include in its assessment lien?

Unpaid assessments, interest, collection and late charges, advances for taxes or other liens, attorney fees, and fines "in accordance with the condominium documents" (MCL 559.208(1)).

Does the association have to record a notice of lien first?

Yes. MCL 559.208(3) says a foreclosure "may not be commenced without recordation and service of notice of lien," recorded with the register of deeds and mailed first class at least 10 days before the foreclosure begins.

Can an association foreclose by advertisement?

The statute says the lien "may be foreclosed by an action or by advertisement." The detailed procedure comes from other foreclosure law, so confirm the steps with counsel.

How long does the owner have to redeem?

Six months from the date of sale, or one month if the property is abandoned (MCL 559.208(2)).

Can the association sue for money instead of foreclosing?

Yes. A money-judgment action "may be maintained without foreclosing or waiving the lien," and the two claims can be combined in one action.

Does the lien beat the bank's mortgage?

Generally no. Sums unpaid on a first mortgage of record come first, except that past-due assessments covered by a recorded notice of lien have priority over a first mortgage recorded after the notice of lien.

Can the association keep the unit after buying it at sale?

Unless the master deed or bylaws prohibit it, the association may bid at the sale and then "acquire, hold, lease, mortgage, or convey" the unit.

Where This Comes From

This page is based on the text of MCL 559.208 as published by the Michigan Legislature (compiled laws complete through PA 114 of 2026), including its history note: MCL 559.208. We did not review the general foreclosure statutes or any court decisions applying this section.

<h2>Where We Stand</h2><p><strong>Our position: we support the lien and foreclosure tools as a last resort.</strong> Associations need a reliable way to collect assessments that fund shared expenses. We urge early outreach and payment plans first, since collection works best before liens are needed. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.</p>

How APM Helps

Association Property Managers manages condominium and HOA communities across Michigan from our East Lansing office, with flat, published pricing. See our Michigan service area, browse every Michigan state-law guide, or request a free proposal. Laws and documents differ by community, and we review your master deed and bylaws when we build your proposal.

Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Michigan attorney before acting.