Michigan guide
Michigan governance risk
Michigan condo governance is set by the Condominium Act, the bylaws, and — for incorporated associations — the Nonprofit Corporation Act. There is no active state regulator, so governance quality is something you read in the documents rather than something an agency polices.
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The most consequential governance issues for a buyer are a clean developer-to-owner transition (MCL §559.152), record-inspection access (MCL §559.157), proper bylaw amendments (MCL §559.190), and corporate good standing. Because disputes are resolved in court, gaps in these areas — an undocumented transition, refused record requests, improperly adopted amendments, or a lapsed entity — are the governance signals that most often precede financial surprises.
Developer transition (MCL §559.152)
The Act sets a turnover timetable: an advisory committee of nondeveloper co-owners forms early, and nondeveloper co-owners elect at least one director and 25% of the board within 120 days of 25% conveyance, 33⅓% within 120 days of 50% conveyance, and all directors within 120 days of 75% conveyance. The transitional control date is when nondeveloper votes exceed developer votes. For newer projects, confirm a clean, documented transition — records, funds, reserve sufficiency at turnover, and warranties — because the transitional control date also drives construction-defect claim deadlines.
Records and meetings (MCL §559.157)
Books, records, contracts, and financial statements must be available for examination by co-owners and their mortgagees at convenient times, with the right to copy. Courts read in an implicit proper-purpose requirement — requests must reasonably relate to the owner's interest. Co-owner meetings require at least 10 days' notice; quorum is set by the bylaws, and proxy voting is permitted. A board that resists producing records without a proper-purpose basis is a governance red flag.
Bylaw amendments (MCL §559.190)
Material bylaw amendments require a two-thirds affirmative vote of all co-owners, 10 days' written notice, recording with the Register of Deeds, and delivery to every co-owner. Boards may make non-material amendments alone only if the documents reserve that authority. An amendment lacking the required vote, notice, or recording is vulnerable to challenge — review recent amendments for procedural compliance.
Good standing and new compliance duties
An incorporated association must keep a resident agent and annual filing current with LARA's Corporations Division; a lapsed or dissolved entity is a red flag. Newer duties also sit on Michigan boards: the Homeowners' Energy Policy Act requires adoption of a solar-energy policy (due by April 1, 2026), and partially built projects must confirm any "need not be built" units were properly handled under MCL §559.167. A board behind on these signals weak administration.
Michigan legal references
- MCL §559.152 — Developer transition and co-owner director elections
- MCL §559.157 — Availability of books and records for inspection
- MCL §559.190 — Bylaw amendments (2/3 vote, notice, recording)
Informational only. Not legal advice. Always confirm against current statute and counsel.
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Find a Michigan specialist →Reviewer's checklist
- Confirm a clean, documented developer-to-owner transition (MCL §559.152)
- Confirm reserve sufficiency and fund/warranty transfer at the transitional control date
- Confirm record-inspection access for co-owners and mortgagees (MCL §559.157)
- Review recent bylaw amendments for the 2/3 vote, notice, and recording (MCL §559.190)
- Read the last one to two years of meeting minutes for governance conflict
- Confirm the association's good standing with LARA's Corporations Division
- Confirm adoption of the HEPA solar-energy policy (due April 1, 2026)
- For partially built projects, confirm 'need not be built' units were handled (MCL §559.167)
- Confirm meeting-notice and quorum practices follow the bylaws and statute
- Look for refused record requests, contested elections, or board turnover
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