Michigan Administrative Code › Department - Licensing and Regulatory Affairs › Office of Policy and Legislative Affairs › Condominiums › Part 1 - GENERAL PROVISIONS › Section R. 559.101 - Definitions

Current through Vol. 24-12, July 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.