Quick Answer
Michigan's Condominium Act has no section that lists a "resale package" for a unit being sold by an owner. The resale rule is MCL 559.211: unpaid assessments are paid from the sale price or by the purchaser, and a purchaser who asks the association for a written statement at least 5 days before sale is not liable above the amount shown. The long document list in MCL 559.184a applies to a developer selling to a prospective purchaser, not to ordinary resales.
Many buyers, lenders and title companies ask associations for more documents in practice. Those requests come from contracts, lender rules or the association's own documents, not from the sections read here. Confirm what your documents require with counsel.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | Condominium Act, 1978 PA 59, MCL 559.211 (resale statement) and MCL 559.184a (developer disclosure) |
| Effective date | 559.211: Act effective July 1, 1978, amended by 2000 PA 379 (immediate effect Jan. 2, 2001). 559.184a: added by 1982 PA 538 (immediate effect Jan. 17, 1983), amended 1983 PA 113 |
| Applies to | 559.211: any sale or conveyance of a condominium unit. 559.184a: a developer providing documents to a prospective purchaser (other than of a business unit, for most items) |
| Key sections | 559.211(1) and (2); 559.184a(1) through (7) |
| Remedy or penalty | 559.211: purchaser liable for unpaid assessments if no statement was requested at least 5 days before sale. 559.184a(7): a developer who violates it is subject to section 115 (not read) |
What the Law Says
MCL 559.211(1): payment at sale
"Upon 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," with two exceptions: amounts due the state, a subdivision or a municipality for unpaid taxes and special assessments, and payments due under a first mortgage having priority.
MCL 559.211(2): the written statement
- A purchaser or grantee "is entitled to a written statement from the association of co-owners" setting out the unpaid assessments, interest, late charges, fines, costs and attorney fees against the seller.
- The purchaser is not liable for, and the unit is not subject to a lien for, those amounts "in excess of the amount set forth in the written statement."
- "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."
MCL 559.184a: developer disclosure
This section covers a developer's presale package: the recorded master deed, a conforming purchase agreement with the escrow agreement, a condominium buyer's handbook, and a disclosure statement. The disclosure statement includes the association's possible liability under section 58, the names, addresses and condominium experience of developers and others, a projected first-year budget, an explanation of the escrow, express warranties, and information on expandable or contractable projects and units labeled "need not be built" or "must be built." Conversion condominiums add disclosure on building components and code violations. The developer must give the purchaser a separate explanatory form, and the purchaser's signature on it is "prima facie evidence" the documents were received and understood. The developer may not make untrue or misleading statements and must promptly amend the documents for material changes.
What This Means in Practice
Boards and managers
The statute puts the association's duty at the written statement. Our reading: the statute does not state a deadline for the association to respond, a fee the association may charge, or required statement contents beyond the listed categories (assessments, interest, late charges, fines, costs and attorney fees). Any response time or fee will come from your documents or policies. Confirm with counsel.
An accurate statement matters because 559.211(2) caps the purchaser's liability at the stated amount. An understated figure may be hard to recover from the purchaser.
Owners and buyers
A buyer who wants protection should request the statement in writing at least 5 days before the sale. A buyer who does not request one is liable for unpaid assessments together with collection costs. A seller can expect unpaid amounts to be paid from the sale price.
What the sections do not say
- They do not list resale documents such as bylaws, budgets, minutes, insurance certificates or reserve information. Buyers and lenders may request them for other reasons.
- 559.184a is a developer duty, not an association resale duty.
- Open question (our reading): whether a document request from a lender must be answered. That depends on your documents and any agreement, not on these sections.
Timeline
| Date | Event |
|---|---|
| July 1, 1978 | Condominium Act takes effect |
| Jan. 17, 1983 | 1982 PA 538 adds section 184a (immediate effect) |
| July 12, 1983 | 1983 PA 113 amends section 184a (immediate effect) |
| Jan. 2, 2001 | 2000 PA 379 amends section 211 (immediate effect) |
Related Michigan Law
- Resale statement and unpaid assessments (MCL 559.211)
- Assessment lien and foreclosure (MCL 559.208)
- Books, records and annual audit (MCL 559.157)
- First-mortgage foreclosure and prior assessments
Board Checklist
- Set a written procedure for responding to requests for an assessment statement.
- Confirm any response time or fee against your bylaws and consult counsel.
- Include unpaid assessments, interest, late charges, fines, costs and attorney fees in each statement.
- Date and keep a copy of every statement sent.
- Route lender and title company requests to one person.
- Do not treat the developer disclosure list as a duty for owner resales.
Frequently Asked Questions
Does Michigan require an association to give a resale certificate?
MCL 559.211(2) entitles a purchaser to a written statement of unpaid amounts. We did not find a statutory list of other resale documents in the sections read.
How early must the purchaser ask for the statement?
At least 5 days before sale, or the purchaser is liable for unpaid assessments and related collection charges.
Is the purchaser bound by the statement amount?
The purchaser is not liable for amounts in excess of the written statement, under 559.211(2).
Who pays unpaid assessments at closing?
They are paid out of the sale price or by the purchaser, ahead of other charges except certain taxes and a prior first mortgage.
Does 559.184a apply to resales?
No. It addresses the developer's documents to a prospective purchaser.
Can the association charge a fee for the statement?
The sections read do not address a fee. Check your documents and ask counsel.
Where This Comes From
We read MCL 559.211, 559.184a and 559.208 on the Michigan Legislature website, current through PA 114 of 2026. We did not read section 115 or section 58. Official site: MCL 559.211.
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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