Michigan MCL 559.167: Reversion of Undeveloped Condo Land

Quick Answer

MCL 559.167(3) and (4) let a Michigan condominium association take back unbuilt land. The developer has 10 years after the master deed is recorded to withdraw undeveloped land or convert unbuilt units to "must be built" without anyone's consent. If the developer does not, the association, by "an affirmative 2/3 majority vote of the members in good standing," may declare the land reverts to general common elements. The developer then has 60 days after notice to act.

The reversion is "not effective unless the election, notice, and recording requirements of subsection (4) have been met." Subsections (3) and (4) were reshaped by 2016 PA 233, effective September 21, 2016.

At a Glance

What the Law Says

Subsection (1) and (2): amendments and replats

A change in a project "shall be reflected in an amendment to the appropriate condominium document," and amendments are "subject to sections 90, 90a, and 91." If a change alters unit boundaries or adds or eliminates units, a replat of the condominium subdivision plan must be prepared and recorded assigning a unit number to each unit in the amended project.

Subsection (3): the developer's window

"Notwithstanding section 33, for 10 years after the recording of the master deed," the developer, its successors or assigns may withdraw "any undeveloped land or convert the undeveloped condominium units located thereon to 'must be built'" without prior consent of co-owners, mortgagees or any other party with an interest. If the master deed gives the developer expansion, contraction or convertibility rights, the period is 10 years after recording the master deed "or 6 years after the recording of the amendment to the master deed by which the developer last exercised its expansion, contraction, or convertibility rights, whichever period ends later." Withdrawn land is automatically granted utility and access easements through the project.

Subsection (4): the association's declaration

If the developer does not act before the applicable period expires, the association, "by an affirmative 2/3 majority vote of the members in good standing, may declare that the undeveloped land shall remain part of the project but shall revert to general common elements and that all rights to construct condominium units upon that undeveloped land shall cease." Next:

• The association gives written notice of the declaration to the developer or any successor developer by first-class mail at its last known address.
• Within 60 days after receipt, the developer or successor developer may withdraw the land or convert the units to "must be built."
• If neither happens within 60 days, the association may file notice of the declaration with the register of deeds. The declaration takes effect upon recording.
• The association must also file notice with the local supervisor or assessing officer.
• If percentages of value need adjusting because fewer units exist, a co-owner or the association may bring an action to require revisions under section 95.

Subsections (5) to (7)

Subsection (5): a reversion, "whether occurring before or after the date of the 2016 amendatory act," is not effective unless the election, notice and recording requirements are met. Subsection (6): (3) and (4) do not apply to units no longer owned by the developer or by the owner when the property became part of the project, unless the purchaser is a successor developer under section 135. Subsection (7) defines "undeveloped land" as land on which one or more condominium units were recorded, "none of which were either identified in the condominium subdivision plan as 'must be built' or have had construction commenced, although infrastructure construction or common element construction may have commenced." It excludes units depicted on the plan under section 66 as containing no vertical improvements.

What This Means in Practice

Deadlines and notice math

• Developer window: 10 years from recording the master deed, extended to 6 years after the last amendment exercising expansion, contraction or convertibility rights if that is later.
• Association vote: only after that period ends without withdrawal or conversion.
• Developer response: 60 days after receipt of the association's first-class mailed notice.
• Effect: only on recording with the register of deeds, plus notice to the local assessing officer.

Example (hypothetical): master deed recorded in year 0, no amendments exercising expansion rights. The developer's 10-year window ends in year 10. If the association votes by 2/3 and mails notice in year 11, the developer has 60 days after receipt to act. If nothing happens, the association may record.

For boards

Start by pulling the recording date of the master deed and every amendment, and by checking the plan for "must be built" labels. The 6-year rule can push the date out, so confirm with counsel which amendment counts as the developer's last exercise of rights. The statute says "members in good standing," so confirm who counts under your documents.

For owners and buyers

Unbuilt land may matter for common-area use, taxes and the number of units sharing expenses. Reversion changes the land's status to general common elements and ends building rights there. The statute contemplates an action to revise percentages of value when fewer units exist.

Open questions (our reading)

• The text does not say what proof of the vote must be recorded. Ask counsel what the register of deeds will accept.
• It does not say how tax or title consequences are handled beyond notice to the assessing officer.
• Disputes about what counts as "undeveloped land" or "construction commenced" are fact-specific. We did not read case law for this page, so we do not state how courts have applied the section. Confirm with counsel.

Timeline

Related Michigan Law

• Developer turnover timeline (MCL 559.152)
• Amending the master deed and bylaws
• Mortgagee voting on amendments (MCL 559.190a)
• PA 58 of 2025: Land Division Act changes
• Michigan Condominium Act overview

Board Checklist

• Find the master deed recording date and the recording dates of each amendment.
• Check the plan for units marked "must be built" and for units with construction begun.
• Identify whether the developer exercised expansion, contraction or convertibility rights and when.
• Confirm who the developer and any successor developer are, and their last known addresses.
• Hold the 2/3 vote only after the applicable period has ended.
• Mail the notice first class and keep proof; calendar 60 days from receipt.
• Record the declaration and notify the local assessing officer.
• Ask counsel about percentage-of-value revisions under section 95.

Frequently Asked Questions

How long does a developer have to build out a Michigan condo?

Under MCL 559.167(3), 10 years after recording the master deed to withdraw undeveloped land or convert units to "must be built," or 6 years after the last amendment exercising expansion, contraction or convertibility rights, whichever ends later.

What vote does the association need?

An affirmative 2/3 majority of members in good standing.

Does the developer get a second chance?

Yes. After receiving the association's notice, the developer or successor developer has 60 days to withdraw the land or convert the units.

When does the reversion take effect?

On recording of the declaration notice with the register of deeds, after the 60 days pass without withdrawal or conversion.

Does it apply to units already sold?

Subsections (3) and (4) do not apply to units no longer owned by the developer or the original property owner, unless the purchaser is a successor developer under section 135.

What happens to percentages of value?

If fewer units exist, a co-owner or the association may bring an action to require revisions under section 95.

Where This Comes From

This page is based on the text of MCL 559.167 as published by the Michigan Legislature, current through PA 114 of 2026 when read on November 13, 2026, including its history note (2016 PA 233, effective September 21, 2016). Official page: legislature.mi.gov, MCL 559.167. We did not read court opinions applying the section.

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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.