Michigan Administrative Code
Department - Licensing and Regulatory Affairs
Office of Policy and Legislative Affairs
Condominiums
Part 1 - GENERAL PROVISIONS
Section R. 559.101 - Definitions
Universal Citation: MI Admin Code R. 559.101
Current through Vol. 24-04, March 15, 2024
Rule 101.
(1) As used in the act and these rules:
(a) "A
100-year flood" means a flood which has a 1% chance of occurring or being
exceeded in any given year.
(b)
"Act" means Act No. 59 of the Public Acts of 1978, as amended, being S559.101
et seq. of the Michigan Compiled Laws.
(c) "Advertising material" means a
prospectus, pamphlet, circular, form letter, fact sheet, sign, newspaper or
magazine ad, or any other sales literature or advertising communication
addressed to, or intended for distribution to, prospective
purchasers.
(d) "Floodplain" means
that area of land adjoining a lake, watercourse, or similar body of water which
will be inundated by a 100-year flood.
(e) "Imposition," with respect to purchasers
or the public under section 154(c) of the act, means the existence of any of
the following factors, among others:
(i)
Failure to comply with the act or these rules where such failure would endanger
the viability of the project.
(ii)
Failure to comply with local, state, or federal statutes, ordinances,
regulations, or rules where such failure would endanger the viability of the
project.
(iii) Financial or
contractual arrangements which permit the developer to directly or indirectly
convey, assign, or otherwise transfer the developer's responsibility to fulfill
contractual obligations to the project or to the co-owners in derogation of
section 137 of the act.
(iv)
Publishing written or oral false or misleading statements concerning a
condominium project.
(f)
"Land surveyor" means either a surveyor who is registered in this state as a
land surveyor or a civil engineer who is registered in this state as a
professional engineer.
(g) "Major
boundary corners" means those property corners which comprise the total
proposed condominium development of a particular project.
(h) "Minor boundary corners" means those
property corners which are created by an individual phase of the project as it
is developed in stages and does not mean a major boundary corner.
(i) "Unreasonable risk," with respect to
prospective co-owners under section 154(c) of the act, means the existence of
any of the following factors:
(i) A
prospective co-owner is likely to lose the money deposited towards the purchase
of a condominium unit.
(ii) A
prospective co-owner would not receive marketable title to the condominium
unit.
(iii) The common elements of
a condominium project are not completed as advertised or stated in the master
deed or disclosure statement.
(iv)
The developer does not pay the developer's share of the monthly assessments as
required by the master deed or other legal documents.
(v) The developer enters into loans with, or
borrows money from, the association prior to the transitional control
date.
(vi) The developer fails to
keep adequate financial records of income and expenditures of the association
of co-owners prior to the transitional control date.
(vii) The developer commingles funds of the
co-owners' association.
(viii)
Other actions which materially endanger the public interest or the interest of
condominium co-owners.
(2) Terms defined in the act have the same meanings when used in these rules.
Disclaimer: These regulations may not be the most recent version. Michigan may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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