When people think of Michigan’s No-Fault Insurance Act (“Act”), their mind is likely drawn to thoughts of a roadside automobile accident. But what if an automobile damages subdivision common areas or condominium common elements? Under State law, drivers are required to carry insurance for injury to or destruction of other’s property resulting from an accident caused by their vehicle. This insurance is intended to benefit third-party property owners (such as a condominium or subdivision association) by imposing liability for property damage on the insurers of vehicle owners or drivers. Continue reading
In the course of running a Condominium Association, various charges may be provided by the Condominium Documents to be assessed against or posted to the accounts of co-owners who are either delinquent or in violation of other provisions of the Condominium Documents. These charges are variously referred to as interest, late, fees, fines and attorney’s fees. Many times we find that due to procedural errors, or because the lack of understanding of the uniqueness of each type of charge, the charges become subject to legal objection as being excessive, constitutionally invalid, unreasonable or in violation of statute. For these reasons, it is important that Associations understand the nature of each of these charges, the legal requirements for validity, and the proper procedures to follow in order for these charges to be enforceable.
There are two main enforcement categories facing all Associations from which these charges flow. The first is in the area of collection of delinquent assessments. The second is in the area of enforcement of behavioral-based restrictions contained in the Condominium Documents, including the Bylaws and Rules and Regulations. Common to both areas are attorney’s fees and, potentially, fines. Continue reading