There is a special time in every young residential association’s life when it is time for control of the association to transfer from the developer to the association’s members—those who own lots or units in the community who are not the developer. This transition is...
Common Estate Planning Documents: Clearing up the Confusion
Often when clients come to us for their estate planning needs, they are confused about what they want or need. Many times they ask for one thing, perhaps a will, but it turns out what they are really asking for is a Trust or some other estate planning document. Estate...
Land Contract Basics
Land contracts are a less-common and lesser-known type of real estate transaction. What are they, why are they used, and what are some of the considerations involved? Background and Nature Land contracts are the “rent-to-own” of real estate. They are a mechanism for a...
Board Decision Making and the Business Judgment Rule
We have recently spent some time focusing on the role of an Association’s board of directors as the entity designated to make decisions for the Association, the fiduciary duties of board members in making those decisions, and adoption of policies and standards for...
Should You Buy a Condominium or a Home with a HOA? Your Personality Matters.
Aristotle said, “[k]nowing yourself is the beginning of all wisdom.” Before you buy a condominium or a home in a subdivision with a homeowners association (HOA) you had better know yourself. Living in communities governed by condominium associations or HOAs can come...
Political Signs in Community Associations
Each election season, we receive questions about political signs in condominiums and homeowners associations. Can community associations restrict political signs, and what are some of the considerations? Freedom of Speech There is a US Supreme Court case, Reed v. Town...
Good Governance of Residential Associations: Board Member Codes of Conduct
An Association’s board of directors plays a fundamental role in a residential community, and, even though much of the day-to-day operations of running the Association may be delegated to a professional manager, a well-functioning board is indispensable to a...
Slips and Falls by Co-owners on the Common Elements of Condominiums: Who, If Anyone, Is Liable?
On February 1, 2022, in Janini v London Townhouses Condo Ass’n,[1] the Michigan Court of Appeals (“COA”) held that a co-owner of a condominium unit could not bring a premises liability action for a slip and fall that occurred on the common elements of the condominium...
Fiduciary Duties of Directors and Officers
When a homeowner gains election or appointment as a director or officer of a corporation, they become a fiduciary for the corporation, and undertake duties to the corporation, and ultimately to the members it represents. What is a Fiduciary? A fiduciary is a person...
The Association’s Duty to Maintain, Repair, and Replace: Adequate Assessment and Planning
Whether your community is a condominium, subdivision, or you live in a cooperative, one of the most important functions of your association is to plan for an execute repairs and maintenance of common elements, areas, or assets. This requires money, which almost always...