Quick Answer
MCL 559.211 (Section 111 of the Michigan Condominium Act) says that when a condominium unit is sold, unpaid assessments, interest, late charges, fines, costs and attorney fees are to be paid out of the sale price or by the purchaser. A buyer is entitled to a written statement from the association of the amounts owed by the seller. If the buyer asks for it at least 5 days before sale, the buyer is not liable for more than the statement shows. If the buyer does not ask, the buyer is liable for the unpaid assessments.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | MCL 559.211, Condominium Act (1978 PA 59), Sec. 111 |
| Effective date | July 1, 1978; last amended by 2000 PA 379 (effective Jan. 2, 2001) |
| Applies to | Sales and conveyances of condominium units |
| Key sections | 559.211(1) payment on sale and exceptions; 559.211(2) written statement and liability cap |
| Remedy or penalty | None stated as a penalty. The consequence is allocation of liability: capped at the statement amount if requested in time, otherwise the buyer is liable |
What the Law Says
Payment at sale
Subsection (1) provides that on "the sale or conveyance of a condominium unit, all unpaid assessments, interest, late charges, fines, costs, and attorney fees against a condominium unit shall be paid out of the sale price or by the purchaser in preference over any other assessments or charges of whatever nature" except:
- Amounts due the state, a subdivision of the state, or a municipality for taxes and special assessments due and unpaid on the unit.
- Payments due under a first mortgage having priority.
The written statement
Subsection (2) gives "a purchaser or grantee" an entitlement to "a written statement from the association of co-owners setting forth the amount of unpaid assessments, interest, late charges, fines, costs, and attorney fees against the seller or grantor."
The statement has a protective effect. The purchaser "is not liable for, nor is the condominium unit conveyed or granted subject to a lien for any unpaid assessments, interest, late charges, fines, costs, and attorney fees against the seller or grantor in excess of the amount set forth in the written statement."
The 5-day request rule
The protection depends on timing: "Unless the purchaser or grantee requests a written statement from the association of co-owners as provided in this act, at least 5 days before sale, the purchaser or grantee shall be liable for any unpaid assessments against the condominium unit together with interest, costs, fines, late charges, and attorney fees incurred in the collection thereof."
What This Means in Practice
For boards
The section puts the association in the position of issuing an accurate statement. The statute does not say how fast the association must respond, what form the statement takes, or what the association may charge for it. Our reading is that an inaccurate or low statement can cap what the association collects from the unit, because the buyer is not liable for amounts "in excess of the amount set forth" in it. Treat each statement as binding in practice and build a checklist so it captures every category the statute lists.
Because the statute lists fines and attorney fees among the items, the statement should separate assessments, interest, late charges, fines, costs and attorney fees, so that nothing in the unit ledger is left off.
For buyers and sellers
For buyers, the "at least 5 days before sale" language is a deadline on the buyer's side. A buyer who does not request the statement in time is liable for unpaid assessments. Whether the 5 days are counted as calendar days is not stated in the section, so confirm with counsel or the title company.
For sellers, subsection (1) points to payment from the sale price, so unpaid amounts commonly surface at closing. The statute does not describe the closing mechanics.
Priority
The section ranks the association's claim ahead of "any other assessments or charges of whatever nature" but behind property taxes and special assessments and behind payments under a first mortgage having priority. For how the assessment lien itself ranks and is foreclosed, see our page on MCL 559.208.
What the statute does not say
- It does not set a response deadline or a fee for the written statement.
- It does not list other resale documents. Another section, MCL 559.184a, appears in the Act's index; we did not read it, so this page does not describe it.
- It does not address statements for transfers other than a "sale or conveyance."
Timeline
| Date | Event |
|---|---|
| July 1, 1978 | Condominium Act section effective |
| Jan. 2, 2001 | Amended by 2000 PA 379 (immediate effect) |
| At least 5 days before sale | Purchaser's request date for the written statement to secure the liability cap |
Related Michigan Law
- MCL 559.208: the assessment lien. See assessment lien and foreclosure.
- MCL 559.158: first-mortgage foreclosure. See first-mortgage foreclosure and prior assessments.
- Michigan Condominium Act 2026: A Guide for Boards
- Michigan Condo Laws: What the Condominium Act Requires
Board Checklist
- Adopt a standard form for the written statement with separate lines for assessments, interest, late charges, fines, costs and attorney fees.
- Set an internal turnaround time, since the statute sets none.
- Reconcile the unit ledger before issuing the statement.
- Keep a dated copy of every statement and the request that prompted it.
- Decide, with counsel, whether the association charges for statements and what the governing documents allow.
- Route requests to one person or to the management company so none are lost.
- Update the statement if the closing date moves and the ledger changes.
Frequently Asked Questions
Who pays unpaid assessments when a Michigan condo sells?
MCL 559.211(1) says they are paid "out of the sale price or by the purchaser," ahead of other assessments or charges, subject to the tax and first-mortgage exceptions.
Is the buyer entitled to a statement of what is owed?
Yes. A purchaser or grantee is entitled to a written statement from the association setting out unpaid assessments, interest, late charges, fines, costs and attorney fees against the seller.
What does the statement protect the buyer from?
The buyer is not liable, and the unit is not subject to a lien, for amounts against the seller "in excess of the amount set forth in the written statement."
What if the buyer does not ask for the statement?
If the buyer does not request it at least 5 days before sale, the buyer "shall be liable for any unpaid assessments" plus interest, costs, fines, late charges and attorney fees incurred in collection.
Does the statute say how quickly the association must respond?
No. The section sets the buyer's 5-day request point but no response deadline for the association.
Do property taxes come before the association's claim?
Yes. Taxes and special assessments due and unpaid on the unit, and payments due under a first mortgage having priority, are excepted from the association's preference.
Where This Comes From
This page is based on the text of MCL 559.211 as published by the Michigan Legislature (compiled laws complete through PA 114 of 2026), including its history note: MCL 559.211. We did not review court decisions applying this section.
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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