Michigan Title Teams: Condominium Act Resale Certificates

The Michigan Condominium Act, adopted as Public Act 59 of 1978 and codified at MCL 559.101 through 559.276, is the backbone of Michigan condo governance, but it is deliberately silent on resale disclosure. New construction gets a heavily regulated offering package with a real cancellation right; resales get the Seller Disclosure Act's physical-condition form and a written assessment statement that protects the buyer only if it is requested early enough. For title teams, that means the documents that other states deliver by statute must be obtained by contract and by discipline: a timely MCL 559.211 request, a full package of governing documents and financials from the association, and a verification pass that treats Michigan like the document-heavy, statute-light jurisdiction it is.

The Michigan Condominium Act: What Applies at Closing

The Michigan Condominium Act applies to every condominium project created by a recorded master deed, including residential, site, expandable, contractable, and conversion projects. It governs how associations are organized, how assessments are levied and collected, and how records must be kept. What it does not do is create a resale certificate regime for existing units, so the Act's relevance to a typical resale closing is indirect but still decisive.

Four provisions drive the title team's file:

• MCL 559.184 (Section 84): new-construction purchase agreements and the 9-business-day withdrawal right.
• MCL 559.184a (Section 84a): the developer's mandatory disclosure package that starts the withdrawal clock.
• MCL 559.211 (Section 111): payment of unpaid assessments at sale and the buyer's written statement protection.
• MCL 559.157 (Section 57): association books, records, contracts, and financial statements available to co-owners and their mortgagees, with mandatory annual audits or reviews for associations with annual revenues above $20,000.

Michigan also has no active condominium regulator reviewing resale disclosures. The Bureau of Construction Codes administers condominium subdivision plans and the initial-offering framework, but no state office checks whether a resale package is complete. That makes your document request the only quality gate in the transaction.

MCL 559.184 and 559.184a: The New-Construction Package

When a developer sells a unit, MCL 559.184(2) provides that a signed purchase agreement is not binding on the purchaser, and the purchaser may withdraw without cause and without penalty within 9 business days after receipt of the documents required by Section 84a, or until conveyance, whichever occurs first. The withdrawal clock includes the day of receipt if it is a business day.

Under MCL 559.184a(1), the developer must deliver:

• The recorded master deed.
• A purchase agreement conforming to Section 84, in a form the purchaser can sign, together with the escrow agreement.
• The Condominium Buyer's Handbook.
• A disclosure statement covering the association's possible liability under Section 58, the names and experience of the developer and any management agency or builder, a projected first-year operating budget, the escrow arrangement, any express warranties, expansion or contraction consequences, and, for conversion projects, the condition of major building components and outstanding code violations.

Michigan courts enforce this package strictly: if any required document is missing, the withdrawal window does not start, and the buyer may rescind and recover the deposit even at the closing table. Under MCL 559.184(3), purchaser funds must be held in escrow and returned within 3 business days of withdrawal. The right can be waived only in exceptional cases by a written, knowing, and voluntary waiver that includes an explanation of the section.

For title teams, the action item on new-build files is straightforward: confirm the developer delivered the complete Section 84a package, verify the waiver or the elapsed window, and never fund a builder-to-buyer closing while the withdrawal right is open. If the file involves a developer-controlled association that is late with documents, the same risk applies to the resale documents, because transitional communities often lack established document workflows. See our guide on new-construction HOA document requirements for the related lender and underwriting checks.

The Resale Gap: No Statutory Resale Certificate in Michigan

Here is the fact that surprises out-of-state title teams first: Michigan has no statutory resale certificate and no statutory rescission period for resales. Buying an existing unit from an owner triggers none of the protections in Sections 84 and 84a, because those sections apply only to developer sales.

What Michigan does provide is the Seller Disclosure Act (Act 92 of 1993, MCL 565.957), which requires a residential Seller's Disclosure Statement. That form covers the physical condition of the unit, not the association's finances, reserves, insurance, governance, or pending assessments. The association's transparency obligations run to owners, not buyers: the bylaws must provide for an annual financial statement to each co-owner (MCL 559.154(5)), and books and records must be made available to co-owners and their mortgagees (MCL 559.157). A buyer is not yet a co-owner, so those rights attach only after closing.

The practical consequences are real and recurring in the Detroit and Southeast Michigan market:

• A buyer can inherit a recently approved but unbilled special assessment that was never disclosed.
• An association's reserve fund can sit at the thin 10%-of-annual-budget floor under the Act's administrative rules (Mich. Admin. Code R 559.511) while the building ages.
• The master policy may exclude ice-dam or water-damage claims that matter deeply in Michigan winters.
• Pending litigation, a common condition in older urban condo buildings, may not surface anywhere in the seller's disclosures.

Because nothing arrives automatically, the resale package must be built by the title team. The best framing is to treat Michigan resales like the contract-based estoppel process used in statute-light states, which is exactly what our comparison of estoppel letters vs. resale packages walks through.

MCL 559.211: The Written Assessment Statement That Protects the Buyer

The one statutory protection that does exist for Michigan resale buyers is buried in the collections chapter, and it is the single most important deadline on your calendar.

MCL 559.211(1) provides that upon the sale or conveyance of a condominium unit, all unpaid assessments, interest, late charges, fines, costs, and attorney fees against the unit must be paid out of the sale price or by the purchaser, in preference over any other charges, with limited exceptions. Subsection (2) then creates the buyer's shield:

• A purchaser or grantee is entitled to a written statement from the association of co-owners setting forth the amount of unpaid assessments and related charges against the seller.
• The purchaser is not liable, and the unit is not conveyed subject to a lien, for any unpaid amounts against the seller in excess of the amount set forth in the written statement.
• But unless the purchaser requests that statement at least 5 days before the sale, the purchaser is liable for all unpaid assessments, interest, costs, fines, late charges, and attorney fees.

This 5-day request is easy to miss because it must be made by the purchaser or grantee, it must be written, and the association has no obligation to volunteer it. Michigan courts have enforced the statute strictly: in Fannie Mae v. Lagoons Forest Condominium Association (Court of Appeals, 2014), the court confirmed that a purchaser who failed to request the statement owed the full arrears, and that the foreclosure exemption in MCL 559.158 applies only to purchasers who acquired title through foreclosure of a first mortgage.

For title teams, the practice is clear: send the MCL 559.211 statement request as soon as the contract is ratified, at least 5 days before the scheduled closing date, and wire it into the file as a hard requirement. Without it, the closing disclosure may be understating the buyer's liability by tens of thousands of dollars.

HOAs and Site Condominiums: Where the Act Does and Doesn't Apply

Michigan's common-interest universe splits into three groups, and title teams routinely confuse them:

• Traditional condominiums: governed by the Condominium Act, with the assessment statement protection in MCL 559.211 and the records rules in Section 57.
• Site condominiums: subdivisions platted as condominium projects under a master deed, where each "lot" is a unit. Many Southeast Michigan communities that look like ordinary detached-home subdivisions are actually site condominiums, which means the full Condominium Act applies, including the 9-business-day new-build rules for developer sales and the MCL 559.211 statement for resales.
• True HOAs: subdivisions governed by recorded declarations and covenants, with no condominium structure. Michigan has no statute requiring resale disclosures for HOAs, so governance comes from the declaration and, where the association is incorporated, the Michigan Nonprofit Corporation Act (Act 162 of 1982, MCL 450.2101 et seq.).

For HOA files, the title team must request everything by contract: an estoppel or status letter from the management company or board, the recorded declaration and amendments, rules, current financials, reserve information, insurance certificates, and a statement of violations. Fees, response times, and letter quality vary wildly because nothing is standardized. A buyer who relies on the declaration alone can miss the assessment authority, transfer fees, and enforcement history that live in board minutes and management records. For the document-by-document breakdown, see our Michigan condo and HOA document requirements guide.

What Michigan Title Teams Must Request in Practice

Treat every Michigan community file, condo or HOA, as a package-building exercise. The request list:

• MCL 559.211 written assessment statement from the association, requested at least 5 days before closing, itemizing all unpaid assessments, interest, late charges, fines, costs, and attorney fees.
• Master deed and all recorded amendments (or the HOA declaration and amendments).
• Bylaws and rules and regulations currently in effect.
• Current budget and reserve balance, and confirmation the reserve fund meets the statutory floor; request any reserve study or engineering report if one exists.
• The last one to two years of financial statements; for associations over $20,000 in annual revenues, the audited or reviewed statements required by MCL 559.157(2).
• Board and owner meeting minutes for the last year or two, to surface pending votes on special assessments or document amendments.
• Master insurance declarations page and claims history, checking ice-dam coverage, deductibles, and compliance with lender requirements.
• Written notice of any pending or approved special assessment and any pending litigation.
• Violation history affecting the subject unit from the board or management company.
• Seller's Disclosure Statement under the Seller Disclosure Act for the unit's physical condition.

Build the same list into the purchase agreement as a document-delivery contingency with a firm deadline. In Michigan, the contract has to do the work a statute does in other states, and a negotiated review window is the only mechanism that gives the buyer an exit if the package reveals an underfunded reserve or an undisclosed assessment. If your team handles frequent Michigan files, the Detroit HOA document guide covers the local management-company and portal patterns that determine how fast these packages actually come back.

Recent Amendments: HEPA, the MRTA, and Pending Reserve Rules

Michigan's 2022-2025 legislative activity has been targeted rather than comprehensive, but three changes affect what title teams see in the documents:

Homeowners' Energy Policy Act (Act 68 of 2024). Effective April 2, 2025, and codified at MCL 559.301 et seq., HEPA invalidates provisions in homeowners' association agreements that prohibit, or require association approval for, the installation of energy-saving improvements or modifications, and prohibits outright bans on solar energy systems. Associations must adopt a written solar energy policy by April 2, 2026 and must approve or deny solar applications within 30 days. Expect to see amended rules sections in newer packages, and flag declarations that still contain unenforceable solar bans.

Marketable Record Title Act (Public Act 13 of 2025). Signed September 29, 2025, the amendment exempts recorded master deeds and their amendments, plus declarations and other instruments executed and recorded on or after January 1, 1950, from the MRTA's 40-year extinguishment rule. For title teams this is stabilizing: older subdivision restrictions and condo master deeds no longer risk expiration for failure to record a notice of claim, and title searches should reflect the new exemptions in MCL 565.104(1)(g) and (h).

Discharge of Prohibited Restrictive Covenants Act. Effective December 13, 2022, this act lets boards record a statutory discharge form to remove discriminatory restrictions without an owner vote. Packages should be checked for recorded discharges that postdate the declaration, because they can change the document set materially.

Pending items. House Bill 5784 (2026 session) would require reserve studies and reserve funding plans for larger condominium associations, and Senate Bill 272 would refine the definition of undeveloped land. Neither is law yet, but both point to tightening reserve and funding rules, which is exactly the area where Michigan files expose the most undisclosed risk.

Michigan Document Request Checklist

Frequently Asked Questions

Does Michigan require a resale certificate for condominium resales?

No. The Michigan Condominium Act (MCL 559.101 et seq.) requires disclosure packages only for new construction sold by a developer. Resale transactions have no statutory resale certificate and no statutory rescission period. Michigan title teams must request the governing documents, financials, insurance, and assessment information by contract and verify the buyer's assessment statement request under MCL 559.211.

What is MCL 559.184?

MCL 559.184 (Section 84 of the Condominium Act) governs new-construction purchase agreements. A signed purchase agreement is not binding on a purchaser, and the purchaser may withdraw without cause and without penalty, within 9 business days after receipt of the documents required by Section 84a (MCL 559.184a). Escrowed funds must be returned within 3 business days of withdrawal.

What must a Michigan developer provide under MCL 559.184a?

The recorded master deed, a purchase agreement conforming to Section 84 together with the escrow agreement, the Condominium Buyer's Handbook, and a disclosure statement covering the association's possible liabilities, developer and management identity and experience, a projected first-year budget, the escrow arrangement, and any express warranties. Conversion projects require additional component-condition and code-violation disclosures.

What is the 5-day rule in MCL 559.211?

On the sale or conveyance of a condominium unit, unpaid assessments are paid from the sale proceeds with preference. A purchaser or grantee who requests a written statement of unpaid assessments from the association at least 5 days before the sale is not liable for amounts beyond the statement. Without that timely written request, the purchaser is liable for all unpaid assessments, interest, late charges, fines, costs, and attorney fees.

Is there a fee cap for Michigan resale statements or documents?

No. Michigan imposes no statutory dollar cap on fees for assessment statements, estoppel letters, or document packages, whether for condominium associations or HOAs. Fees are set by the association or management company under the governing documents, so title teams should obtain written quotes before ordering and confirm who pays under the purchase agreement.

Do Michigan HOAs have resale disclosure requirements?

No. Michigan has no statute requiring resale disclosures for non-condominium HOAs. Subdivision HOAs are governed by their recorded declarations, and governance comes from the Michigan Nonprofit Corporation Act where applicable. Title teams must request estoppel or status letters, financials, insurance, and violation information by contract because nothing will arrive automatically.

What recent Michigan laws affect condo and HOA closings?

The Homeowners' Energy Policy Act (Act 68 of 2024, effective April 2, 2025) invalidates HOA and condo restrictions that ban energy-saving improvements and solar installations, and requires associations to adopt a written solar policy by April 2, 2026. Public Act 13 of 2025 amended the Marketable Record Title Act so recorded master deeds and declarations recorded on or after January 1, 1950 cannot be extinguished by the 40-year rule. Reserve study requirements remain pending bills.

Key Takeaways

Michigan title teams that understand the statute-light resale landscape protect their closings from undisclosed assessments, thin reserves, and voidable new-build timelines. Here is what to remember:

• No statutory resale certificate for resales. The package must be built by request and by contract, never assumed.
• MCL 559.211 is the buyer's shield. The written assessment statement must be requested at least 5 days before the sale, or the buyer inherits the full arrears.
• New construction is different. MCL 559.184 gives a 9-business-day withdrawal after receipt of the Section 84a package, and courts require strict compliance.
• There are no fee caps. Get written quotes for assessment statements, estoppel letters, and document packages before ordering.
• HOAs have no disclosure statute. Request estoppel letters, financials, insurance, and violations by contract for every subdivision file.
• Site condominiums are condominiums. If a community looks like a subdivision but has a master deed, the full Act applies.
• HEPA changed the rules. Solar and energy-improvement restrictions are invalid, and associations had until April 2, 2026, to adopt written solar policies.
• Check reserves and insurance together. The 10% reserve floor and Michigan winter claims history are where undisclosed risk lives.

If your team is juggling multiple Michigan condo and HOA files and needs predictable turnaround, consider routing orders through a dedicated retrieval service that handles the MCL 559.211 request timing, verifies package completeness, and confirms fees before the documents reach your desk.