Quick Answer
The Michigan Condominium Act lets a developer reserve rights in the master deed to add land (expandable), withdraw land (contractable) or convert space into units or common elements (convertible). Sections 31 to 33 (MCL 559.131 to 559.133) list what the master deed must say, and each sets a time limit of "not more than 6 years after" initial recording of the master deed for exercising the option.
The point for owners and boards: if your community is still being built out, the master deed tells you what may be added, how many units, and by when. After the window closes, the reserved option expires.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | MCL 559.131 (convertible), 559.132 (expandable), 559.133 (contractable), 559.138, 559.141, 559.143 (Condominium Act, 1978 PA 59) |
| Effective date | July 1, 1978; sections 31 to 33 amended 1982 PA 538 (immediate effect January 17, 1983) |
| Applies to | Condominium projects whose master deeds reserve these developer options |
| Time limit | "Not more than 6 years after" initial recording of the master deed (each of sections 31, 32 and 33) |
| Key sections | Master deed contents (31 to 33); allocation of interests (38); conversion amendment (41); timing and consolidating master deed (43) |
| Remedy or penalty | None stated in these sections |
What the Law Says
The Act defines an "expandable condominium" as "a condominium project to which additional land may be added in accordance with this act" (MCL 559.106(4)). We read the master deed requirements for convertible, expandable and contractable projects in full. We did not re-read the definitions of "convertible" and "contractable" areas, so this page describes them by what sections 31, 33 and 41 say.
Convertible area (section 31, MCL 559.131)
If the project contains any convertible area, the master deed must contain:
- A "reasonably specific reference to the convertible area."
- The maximum number of units that may be created there, and the types of units.
- A statement of how compatible a structure on that area will be with structures elsewhere in the project, and a general description of improvements.
- The developer's reserved right, if any, to create limited common elements in the area.
- "A time limit of not more than 6 years after initial recording of the master deed, by which the election to use this option expires."
Expandable project (section 32, MCL 559.132)
The master deed must contain "the explicit reservation of an election" to expand, and among other items:
- Any restrictions on the election, including whether co-owner consent is required and how it is ascertained, or a statement that no limits exist.
- A time limit "of not more than 6 years after the initial recording of the master deed."
- A legal description of the land that may be added, normally by metes and bounds or by reference to subdivided land.
- Whether all or only portions of the land must be added, whether portions can be added at different times, and the order.
- The maximum number of units on the added land (and on each portion), and the maximum percentage of land and floor area that may be used for units not restricted exclusively to residential use.
- Compatibility of structures, description of improvements, restrictions on unit types and locations of improvements.
- Reserved rights to create limited common elements and easements for land outside the project.
- Whether expansion occurs by successive amendments or by separate projects later merged by a "consolidating master deed."
Contractable project (section 33, MCL 559.133)
The master deed must contain the explicit reservation of an election to contract, restrictions on it (including any co-owner consent), "a time limit of not more than 6 years after the initial recording of the master deed," any circumstances that end the option earlier, a general description of land that may be withdrawn, and whether portions can be withdrawn at different times and in what order.
How the change takes effect
- Section 38 (MCL 559.138): interests in the common elements are not allocated to units in convertible or additional land until the master deed is amended and an amended subdivision plan is recorded. The amendment must include a revised schedule of undivided interests following the formula in the original master deed.
- Section 41 (MCL 559.141): the developer may convert all or part of convertible area into units or common elements, "subject to the restrictions which the condominium documents may specify," and "shall promptly prepare, execute, and record an amendment to the master deed."
- Section 43 (MCL 559.143): an expansion, contraction or conversion is "deemed to have occurred at the time of recording of an amendment to the master deed embodying all essential elements." At the end of an expansion, "a consolidating master deed shall be prepared and recorded by the developer."
- Section 35 (MCL 559.135): where the purposes of sections 31 to 33 reasonably require easements, they are to be created and described in the condominium documents.
What This Means in Practice
For boards in a project still under development
Pull the recorded master deed and look for the reservation language. It should tell you the land that may be added or withdrawn, maximum unit counts and the 6-year deadline measured from initial recording. Our reading: if that deadline has passed and no amendment was recorded, the reserved option should have expired, but how a particular deed worded the time limit and what was actually recorded must be checked by counsel and a title search.
Section 43 ties the legal effect to recording. A plan announced in a sales brochure or site plan does not change the project until an amendment is recorded (our reading of section 43). Budget planning follows from that: when new units are added, section 38 requires a revised schedule of undivided interests, which affects each owner's share.
For owners and buyers
Before buying in a partly built project, review what the master deed reserves: how many more units might be added, whether any may be non-residential (section 32 requires a maximum percentage statement), and whether co-owner consent is needed. Those answers affect future assessments, traffic and use of common areas.
What the law does not say
- It does not state what happens to a reserved option after the 6 years other than that the election "expires."
- These sections do not themselves provide a remedy if a developer builds beyond the stated maximums.
- We did not review the Act's rules for undeveloped land that is never built out. That topic is covered under the reversion statute, MCL 559.167, on a sibling page.
- We did not review court decisions on these sections.
Timeline
| Date | Event |
|---|---|
| July 1, 1978 | Condominium Act takes effect, including sections 31 to 43 |
| January 17, 1983 | 1982 PA 538 amends sections 31 to 33 and 43 (immediate effect) |
| Recording date of the master deed | Starts the "not more than 6 years" clock for each reserved option (per sections 31 to 33) |
Related Michigan Law
- MCL 559.167: reversion of undeveloped land
- MCL 559.171: developer pre-filing notices
- MCL 559.152: developer turnover timeline
- MCL 559.190: amending the master deed and bylaws
- Fenton Orchards: reversion of unbuilt units
- Michigan Condominium Act 2026: guide for boards
Board Checklist
- Obtain the recorded master deed, all amendments and any consolidating master deed.
- Identify any reserved expansion, contraction or conversion rights and the stated time limits.
- Note the initial recording date and compute the 6-year outer limit; have counsel confirm it.
- Compare recorded amendments with the maximum unit counts and land descriptions in the master deed.
- Confirm each added unit has an amended subdivision plan and revised schedule of undivided interests.
- Ask counsel whether any reserved option has expired and whether a consolidating master deed is due.
- Update budgets and voting records when units are added or removed.
Frequently Asked Questions
How long can a Michigan developer keep the right to expand a condominium?
The master deed must state a time limit of not more than 6 years after initial recording of the master deed (MCL 559.132).
Does the 6-year limit apply to converting and contracting too?
Yes. Sections 31 (convertible) and 33 (contractable) each require a time limit of not more than 6 years after initial recording.
When does an expansion legally take effect?
Under MCL 559.143, it is deemed to occur when an amendment to the master deed embodying all essential elements is recorded.
Do owners get a vote on expansion?
Section 32 requires the master deed to say whether co-owner consent is required and how it is determined, or that no limitation exists. The answer is in the specific master deed.
What is a consolidating master deed?
Under MCL 559.143, it is prepared and recorded by the developer at the conclusion of expansion. Section 32 also refers to merging separate projects by a consolidating master deed.
Does this page cover leasehold condominiums?
No. MCL 559.134 covers leasehold projects separately, requiring among other things that the lease terms not be unconscionable. We mention it only for context.
Who decides if an option has expired?
The statute does not name a decision-maker. Ask counsel and review the recorded documents.
Where This Comes From
This page is based on the text of MCL 559.106, 559.131, 559.132, 559.133, 559.134, 559.135, 559.138, 559.141 and 559.143 as published on the Michigan Legislature website (MCL 559.132), current through PA 114 of 2026. We did not review the definitions of "convertible" or "contractable" or any court decisions.
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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