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Michigan Condominium Act Case Study

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Does the Board of Directors of a Michigan Condominium Association or HOA have authority to deviate from the Master Deed, Bylaws or restrictive covenants?

In Michigan, the terms of a Master Deed, Bylaws or other restrictive covenant are contractual in nature. See Rossow v. Brentwood Farms Dev., Inc., 251 Mich.App. 652, 658, 651 N.W.2d 458 (2002). The Michigan Courts have generally held that a Master Deed, Bylaws or other restrictive covenant are to be enforced as written.

…a breach of a covenant, no matter how minor and no matter how de minimis the damages, can be the subject of enforcement. As this Court said in Oosterhouse v. Brummel, 343 Mich. 283, 289, 72 N.W.2d 6 (1955), “ ‘If the construction of the instrument be clear and the breach …show more content…

Generally speaking, the Master Deed, Bylaws or other restrictive covenant will charge the Board of Directors with enforcing these documents. Similarly, the terms of the governing documents and the Michigan Condominium Act require every owner to “…comply with the master deed, bylaws, and rules and regulations of the condominium project…” MCL 559.165. Accordingly, as a general rule, the Board of Directors of a Condominium Association or Homeowner Association is required to enforce the governing documents as written.
In addition, MCL 450.2541, of the Michigan Nonprofit Corporation Act provides the following standard of care for a director a nonprofit …show more content…

Owners Ass'n v. Pelzer, 292 S.C. 343, 347, 356 S.E.2d 411, 414 (Ct.App.1987). The business judgment rule only applies to intra vires acts, not ultra vires ones. Kuznik, 342 S.C. at 605, 538 S.E.2d at 28. A homeowners association is bound to follow its covenants and bylaws and cannot defend something that violates those documents on the basis that is a reasonable alternative. Seabrook Island Prop. Owners Ass'n, 292 S.C. at 348, 356 S.E.2d at

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