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According to the Michigan Court of Appeals, the purchaser of a condominium unit at foreclosure becomes responsible for assessments and fees of the condominium association as of the condominium foreclosure sale. The condominium association does not have to wait to charge the new owner until expiration of the redemption period.

 

This is important because, representing condominium associations, I have had cases where the foreclosure buyer challenges the obligation to pay because of language in the Michigan Condominium Act making it debatable as to when such a purchaser “acquires title” to the condominium unit. The court held that the buyer acquires title to the real estate as of the foreclosure sale for purposes of the Michigan Condominium Act.

 

The case is Wells Fargo Bank v Country Place Condominium Association. In this situation, the Condominium Association should bill the buyer for condominium assessments as of the date of the foreclosure sale.