Articles of Condominium

Before any property in a condominium development is even purchased, it is necessary that the developer forms a Condominium or Homeowners’ Association to govern it. The Articles of Condominium, also known as the Governing documents, protects everyone’s interests including the developer and the future owners. Gudeman can help you create and file effective Articles, Bylaws, CC&Rs and Rules & Regulations that will give confidence to you, the stakeholders, lenders, investors and the forthcoming purchasers.

Governing documents:

  • Articles of Incorporation
  • Bylaws of the Association
  • Declaration of Covenants, Conditions & Restrictions (CC&Rs)
  • Rules & Regulations

Articles of Incorporation

The property developer forms a Condominium or Homeowners’ Association, and each purchaser of a property within the development automatically becomes a member of the Association. The Association is created by filing Articles of Incorporation for a non-profit organization with the secretary of state where the development is located. The Articles of Incorporation are usually brief and contain only the basic information about the Association such as its name, location and purpose.

Bylaws of the Association

Once the Association is formed, it typically adopts a set of bylaws. Bylaws of the Association are important because they describe how the Association is governed, establish voting rights and procedures and contain rules for procedures such as how to call a meeting and how often meetings are held. The Bylaws may also describe the Association’s rights and responsibilities such as being responsible to enforce the rules and regulations and to collect assessments. The Bylaws may also establish the procedures for creating the annual budget and determining assessment amounts. Associations are generally run by a board of directors made-up of a certain number of members (owners) elected by the membership at large (all the owners) during scheduled elections. The Bylaws typically create the term limits for the board members and procedures for elections.

Declaration of Covenants, Conditions & Restrictions (CC&Rs)

The Declaration of Covenants, Conditions & Restrictions contain comprehensive information about the development and its operation, and Michigan law requires the recording of the CC&Rs in the Real Property Records in the county where the development is located. The Declaration of CC&Rs is a lengthy document that establishes the general structure of the development and describing what land is subject to the governing documents as well as what parts of the development are common areas owned by the Association. The CC&Rs contain restrictions on the use of each owner’s property and the common areas. They specify the Association’s authority and obligations and define the rights and responsibilities of Association members. Every owner must abide by all the rules, restrictions, terms and conditions contained in the CC&Rs.

Rules & Regulations

Although general rules are contained within the Declaration of CC&Rs, the Association commonly adopts an additional set of Rules & Regulations, a lengthy and more detailed outline of protocols and procedures. The purpose of the Association is to do what’s best for the common good and value of the entire development. Because every individual owner may not be in agreement, the Rules & Regulations are often the most controversial documents in a condominium development.

Condominium Law

A residential condominium in the state of Michigan cannot be offered for sale unless it is in compliance with state law, and it is important to have a qualified real estate legal team giving both legal and practical assistance. We are the experts in Real Estate Law and Michigan Condominium Law, and Gudeman will draft, review and file all legal and recorded documents for a condominium project in order to prevent any delays, grievances or potential lawsuits.

Michigan Condominium Law pertains to such things as escrow arrangements, required contents of master deed, bylaws and all other condominium documents for the condominium project, assigning power and duties to the administrator, providing protections for certain tenants, senior citizens and persons with disabilities relating to condominium projects and much more.

To ensure that your impending project is in compliance with state law before the purchasing and breaking of ground, Gudeman will give confidence to you, the developer, stakeholders, lenders, investors and the future members.

Condominium Law:

  • The Michigan Condominium Act
  • The Michigan Condominium Act Administrative Rules
  • The Michigan Nonprofit Corporation Act
  • The Michigan Land Division Act

Governing documents:

  • Articles of Incorporation
  • Bylaws of the Association
  • Declaration of Covenants, Conditions & Restrictions (CC&Rs)
  • Rules & Regulations