Quick Answer
MCL 559.152 (Section 52 of the Michigan Condominium Act) sets the timetable for handing a new condominium from the developer to the owners. An advisory committee of non-developer co-owners must be set up at the earlier of 120 days after one-third of the units that may be created are conveyed, or 1 year after the first conveyance to a non-developer owner. Owners then elect a growing share of the board at 25%, 50% and 75% conveyance milestones, with a 54-month fallback and a requirement to record a consolidating master deed within 1 year of construction completion.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | MCL 559.152, Condominium Act (1978 PA 59), Sec. 52 |
| Effective date | July 1, 1978; amended by 1982 PA 538 (effective Jan. 17, 1983) and 2000 PA 379 (effective Jan. 2, 2001) |
| Applies to | Condominium projects still under developer control |
| Key sections | 559.152(1) advisory committee; (2) 25/50/75% thresholds; (3) 54-month rule; (4) rounding; (5) consolidating master deed; (6)-(7) definitions and builder sales |
| Remedy or penalty | None stated in the section |
What the Law Says
The advisory committee
Subsection (1): "An advisory committee of nondeveloper co-owners shall be established either 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 1/3 of the units that may be created or 1 year after the initial conveyance of legal or equitable title to a nondeveloper co-owner of a unit in the project, whichever occurs first."
The committee meets with the board "for the purpose of facilitating communication and aiding the transition of control." It ceases to exist "when a majority of the board of directors of the association of co-owners is elected by the nondeveloper co-owners."
Board election thresholds
Subsection (2) sets minimum owner representation tied to conveyances of "the units that may be created":
- 25%: not later than 120 days after title to 25% of the units that may be created is conveyed to non-developer co-owners, at least 1 director and not less than 25% of the board "shall be elected by nondeveloper co-owners."
- 50%: not later than 120 days after 50% is conveyed, not less than 33-1/3% of the board.
- 75%: not later than 120 days after 75% is conveyed, and before 90% are conveyed, the non-developer co-owners "shall elect all directors on the board." The developer keeps the right to designate at least 1 director "as long as the developer owns and offers for sale at least 10% of the units in the project or as long as 10% of the units remain that may be created."
The 54-month rule
Subsection (3): "54 months after the first conveyance of legal or equitable title to a nondeveloper co-owner of a unit in the project, if title to not less than 75% of the units that may be created has not been conveyed," non-developer co-owners may elect a number of directors "equal to the percentage of units they hold," and the developer may elect a number equal to the percentage of units it owns "and for which all assessments are payable by the developer." This election "may increase, but does not reduce, the minimum election and designation rights otherwise established in subsection (2)," and does not require a change in board size.
Rounding
Under subsection (4), a fractional election right "of 0.5 or greater shall be rounded up to the nearest whole number," and the developer then elects the remaining members, subject to its right to designate 1 member under subsection (2).
Consolidating master deed
Subsection (5): "A consolidating master deed and plans showing the condominium as built shall be recorded not later than 1 year after completion of construction in order to consolidate all phases or amendments of a condominium project. A copy of the recorded consolidating master deed shall be provided to the association of co-owners."
Definitions and builder sales
- "Units that may be created" means "the maximum number of units in all phases of the condominium project as stated in the master deed" (subsection (6)).
- For timing purposes, a conveyance by a developer to a residential builder "is not considered a sale to a nondeveloper co-owner until such time as the residential builder conveys that unit with a completed residence on it or until it contains a completed residence which is occupied" (subsection (7)).
What This Means in Practice
For owners in a new project
The clock is driven by conveyances measured against the maximum unit count in the master deed, not by the number of units built so far. A project planned for 100 units reaches the 25% milestone when 25 units have been conveyed to non-developer owners, even if only 40 are built. Subsection (7) means sales to residential builders do not count until the builder sells a completed home or the unit holds an occupied completed residence.
Counting the advisory committee date
The committee date is the earlier of two events: 120 days after one-third of the units that may be created are conveyed to non-developer owners, or 1 year after the first such conveyance. Even if sales are slow, the 1-year date arrives on its own.
Board size and rounding
The statute states percentages of the board, plus a floor of at least 1 director at the 25% stage. Subsection (4) addresses fractions: a fractional election right "of 0.5 or greater shall be rounded up to the nearest whole number." It does not spell out what happens below 0.5. Open question: how a fraction under 0.5 interacts with the "at least 1 director" floor on a small board. Confirm with counsel.
For boards after turnover
The consolidating master deed must be recorded within 1 year after completion of construction, and the association is entitled to a copy. A newly owner-controlled board can check whether that happened. For what the board may do about developer contracts, see our page on MCL 559.155.
What the statute does not say
- It does not prescribe how the owners hold the election or how notice is given. The condominium documents govern those details.
- It does not set a penalty if the developer misses a milestone.
- It does not require an audit, reserve study or financial statements at turnover. Other sections or the documents may.
- It does not define when "completion of construction" occurs for the consolidating master deed deadline.
Timeline
| Trigger | Required event |
|---|---|
| Earlier of 120 days after 1/3 of units conveyed, or 1 year after first conveyance | Advisory committee established |
| Not later than 120 days after 25% conveyed | At least 1 director and not less than 25% of board elected by non-developer owners |
| Not later than 120 days after 50% conveyed | Not less than 33-1/3% of board |
| Not later than 120 days after 75% conveyed, and before 90% | Non-developer owners elect all directors (developer may designate at least 1 while it holds 10%) |
| 54 months after first conveyance, if under 75% conveyed | Elections proportional to units held |
| Not later than 1 year after construction completion | Consolidating master deed recorded |
Related Michigan Law
- MCL 559.155: developer contracts voidable after turnover.
- MCL 559.190: amending the master deed and bylaws, including consolidating master deeds.
- MCL 559.157: books, records and audit.
- Michigan Condominium Act 2026: A Guide for Boards
- Michigan Condo Laws: What the Condominium Act Requires
Board Checklist
- Pull the master deed and note the maximum number of units that may be created.
- Build a conveyance log showing units conveyed to non-developer owners, with dates.
- Treat builder-held units carefully under subsection (7).
- Calendar the advisory committee date and each 120-day election deadline.
- Calendar the 54-month date from the first conveyance.
- Confirm the consolidating master deed was recorded and that the association has a copy.
- Confirm the date the board took office, since it fixes the transitional control date.
- Ask counsel to review developer-era contracts after turnover.
Frequently Asked Questions
When does a Michigan condo developer have to give up control of the board?
In stages. Owners elect at least 25% of the board by 25% conveyance, at least 33-1/3% by 50%, and all directors (except 1 the developer may designate) by 75%, each within 120 days of the milestone.
What is the advisory committee?
A committee of non-developer co-owners established at the earlier of 120 days after 1/3 of units that may be created are conveyed or 1 year after the first conveyance. It meets with the board to aid the transition.
What is the 54-month rule?
If 54 months pass after the first conveyance without 75% of units being conveyed, owners and the developer elect directors in proportion to the units they hold, without reducing the minimums in subsection (2).
Does the developer keep any board seat?
The developer may designate at least 1 director as long as it owns and offers for sale at least 10% of the units, or as long as 10% of the units that may be created remain.
Do units sold to a builder count as sold to owners?
Not until the builder conveys the unit with a completed residence, or it contains a completed, occupied residence.
When must the consolidating master deed be recorded?
Not later than 1 year after completion of construction, with a copy provided to the association.
Where This Comes From
This page is based on the text of MCL 559.152 and the definition of "transitional control date" in MCL 559.110 as published by the Michigan Legislature (compiled laws complete through PA 114 of 2026): MCL 559.152. We did not review court decisions applying this section.
<h2>Where We Stand</h2><p><strong>Our position: we support stronger audit and reserve disclosure at turnover.</strong> The statute does not require either, and turnover is a common source of owner disputes with developers. Owners should seek independent financial and building reviews at turnover. 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.
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