Michigan HOA Lien Laws

Michigan HOA lien laws depend heavily on whether the property is part of a condominium association or a non-condominium homeowners association. Michigan has a specific statutory lien and foreclosure framework for condominium associations under the Michigan Condominium Act, including MCL 559.208. By contrast, Michigan does not have one comprehensive statute governing ordinary, non-condominium HOAs; their assessment and lien rights generally depend on the recorded declaration, covenants, bylaws, and other governing documents, along with applicable general law.

Direct Answer: Michigan HOA lien laws allow an association to pursue unpaid assessments when the association’s governing documents create enforceable lien rights. For condominium associations,

expressly creates an assessment lien and establishes rules for priority, notice, foreclosure, and redemption. For a traditional non-condominium HOA, the declaration and recorded covenants are especially important because Michigan does not provide the same comprehensive statutory lien framework that applies to condominiums.

Definition: HOA Lien

An HOA lien is a legal claim against real property securing money allegedly owed to a homeowner association. Depending on the community’s governing documents and the applicable law, the debt may include assessments and potentially interest, late charges, collection costs, attorney fees, or other authorized charges.

Does Michigan Have a Statewide HOA Lien Law?

The first question is not simply whether an association calls itself an HOA. The important question is what legal structure governs the property.

Michigan’s Condominium Act, MCL 559.101 through MCL 559.276, provides a detailed statutory framework for condominium projects. Section 559.208 specifically addresses assessment liens.

Traditional subdivision or planned-community HOAs are different. Michigan does not have a single comprehensive HOA statute comparable to some states’ dedicated planned-community HOA acts. Many Michigan HOAs are organized as nonprofit corporations, but their corporate status does not by itself create the same statutory assessment lien available under MCL 559.208 for condominiums. The association’s recorded declaration and other governing documents therefore become critical.

HOA vs. Condominium Association

Issue	Non-Condo Michigan HOA	Michigan Condominium Association
Comprehensive dedicated HOA statute	No single comprehensive statute	Michigan Condominium Act applies
Assessment lien	Generally, depends on governing documents	Express statutory lien under MCL 559.208
Lien priority	Depends on applicable law and recorded documents	Specifically addressed by MCL 559.208
Foreclosure rules	Depends on lien/document authority and applicable foreclosure law	MCL 559.208 provides foreclosure mechanisms
Pre-foreclosure lien notice	Primarily document-dependent	Statutory notice requirements apply
Redemption period under MCL 559.208	Not the condominium rule	6 months, or 1 month if property is abandoned

This distinction is essential. A homeowner should not automatically apply condominium lien rules to a traditional subdivision HOA.

How Does a Michigan HOA Lien Arise?

For a traditional HOA, start with the Declaration of Covenants, Conditions and Restrictions (CC&Rs) and related recorded documents.

A declaration may provide that homeowners must pay annual assessments, special assessments, interest, collection expenses, or other authorized charges. Some declarations expressly state that unpaid assessments become a continuing lien against the property. Michigan appellate case law includes examples of subdivision declarations creating a continuing lien for maintenance assessments.

The exact language matters.

For example, a declaration might establish:

1. A homeowner’s obligation to pay regular assessments.
2. The association’s authority to impose special assessments.
3. Interest or late charges for delinquent accounts.
4. Attorney fees or collection expenses.
5. A lien securing unpaid assessments.
6. Procedures for enforcing the lien.

If a homeowner disputes an assessment, the governing documents should be reviewed before assuming that every charge is automatically secured by a lien.

What Can Be Included in a Michigan HOA Lien?

Non-Condominium HOAs

For a traditional HOA, the answer depends substantially on the association’s governing documents and applicable law.

The declaration may authorize certain categories of charges, such as:

• Regular assessments
• Special assessments
• Interest
• Late charges
• Collection expenses
• Attorney fees
• Other charges expressly authorized by the governing documents

The association should be able to identify the contractual or legal authority supporting each amount it seeks to collect.

Condominium Associations

Michigan’s Condominium Act is more explicit.

Under MCL 559.208, unpaid amounts assessed against a condominium unit can include the assessment itself, interest, collection and late charges, certain advances made to protect the association’s lien, attorney fees, and fines imposed in accordance with the condominium documents.

That does not mean every charge an association chooses to place on an account automatically becomes legally enforceable. The charge must have an appropriate basis under the governing documents and applicable law.

What Is the Priority of an HOA Lien in Michigan?

Lien priority determines which claims against a property are paid first when competing liens exist.

For condominium associations, MCL 559.208 provides a specific priority rule. The statutory assessment lien generally has priority over other liens, except for state or federal tax liens and sums unpaid on a first mortgage of record. There is also an important exception for past-due assessments evidenced by a properly recorded notice of lien: those assessments can have priority over a first mortgage recorded after the notice of lien.

Why Recording Date Matters

Consider a simplified example:

• A homeowner has a first mortgage recorded in 2020.
• The condominium association later records an assessment lien.
• A second mortgage is recorded in 2025.
• The association’s properly recorded past-due assessment lien may have priority over that later-recorded first mortgage interest under the statutory exception.

The exact priority analysis can become more complicated when mortgages, tax liens, judgment liens, prior interests, and different types of HOA or condominium documents are involved.

For a non-condominium HOA, homeowners and boards should not simply assume the condominium priority rules apply.

Can an HOA Foreclose on a Home in Michigan?

Potentially, yes — but the legal route depends on the type of association and the authority supporting the lien.

For condominium associations, MCL 559.208 expressly states that an assessment lien may be foreclosed either by an action or by advertisement in the association’s name on behalf of the other co-owners. The statute also states that a money judgment for unpaid assessments may be pursued without foreclosing or waiving the lien.

For a traditional HOA, the analysis begins with the recorded declaration and the association’s lien rights. A non-condominium HOA cannot simply assume that the condominium statute supplies its foreclosure authority.

HOA Foreclosure Is Not the Same as Losing the Home Immediately

A lien is not itself a completed foreclosure sale.

Generally, there is a sequence involving:

1. An assessment or other authorized debt becomes delinquent.
2. The association determines the amount allegedly owed.
3. The association follows the notice and enforcement requirements applicable to the community.
4. A lien may be recorded if authorized.
5. The association may pursue collection or foreclosure where legally permitted.
6. If a foreclosure sale occurs, statutory or other applicable redemption rules may apply.

The exact procedure should be evaluated under the governing documents and the applicable Michigan foreclosure statutes.

What Notice Is Required Before a Michigan Condominium Lien Foreclosure?

Michigan’s condominium statute contains specific requirements.

Before a foreclosure proceeding under MCL 559.208 can begin, the association must record and serve a notice of lien meeting statutory requirements. The notice must identify the condominium unit, the record owner, and the amount due as of the notice date, excluding certain additional amounts such as interest, costs, attorney fees, and future assessments.

The notice must be recorded with the county register of deeds where the condominium project is located. It must also be served on the delinquent co-owner by first-class mail to the last known address at least 10 days before commencement of the foreclosure proceeding.

This is an important distinction for homeowners researching Michigan HOA lien laws: the 10-day statutory notice requirement is part of the condominium assessment-lien foreclosure framework. It should not automatically be treated as a universal notice rule for every Michigan HOA.

How Long Is the Redemption Period for a Michigan HOA Lien Foreclosure?

For a condominium assessment lien foreclosed under MCL 559.208, the redemption period is generally six months from the date of sale. If the property is abandoned, the statute provides a one-month redemption period.

The redemption period is a critical part of the foreclosure process because the owner’s rights do not necessarily end the moment the foreclosure sale occurs.

Homeowners dealing with an actual foreclosure should obtain the sale documents and determine which statute and foreclosure procedure applies to their specific property.

Can an HOA Lien Affect a Mortgage?

Yes. An HOA lien can affect the title and the economic interests associated with a property, but priority matters.

A recorded lien can also create problems during a sale or refinance because a title search may identify the outstanding claim. For condominium assessments, Michigan law provides specific rules concerning the relationship between the association’s lien, tax liens, and first mortgages.

For a non-condominium HOA, the priority analysis should be based on the actual declaration, recording history, mortgage documents, and applicable Michigan law rather than automatically importing the condominium rules.

What Happens When an Owner Sells a Home with an HOA Lien?

An outstanding HOA lien can complicate a real-estate transaction.

A buyer’s title company or closing agent will generally need to identify outstanding claims affecting title and determine what must be paid, released, or otherwise resolved before the transaction can close.

For condominium properties, Michigan law also contains specific rules concerning statements of unpaid assessments and the liability of purchasers or grantees. The details should be reviewed under the applicable provisions of the Condominium Act.

Practical Steps Before Closing

If you are selling a property and believe an HOA lien exists:

1. Request an up-to-date account statement from the association.
2. Ask for a copy of the recorded lien, if one exists.
3. Verify the legal description and property information.
4. Ask for the association’s payoff or release requirements.
5. Provide the documents to the title company or closing attorney.
6. Confirm that the lien will be released or otherwise addressed at closing.

Do not rely solely on a verbal balance from an HOA representative when a recorded lien is involved.

What Should a Michigan Homeowner Do After Receiving an HOA Lien Notice?

Receiving a lien notice does not mean you should ignore the matter.

Start by determining whether the property is a condominium or a traditional HOA community. Then compare the amount claimed with your payment records and the association’s governing documents.

A Practical Checklist

• Obtain the declaration and relevant bylaws.
• Request a detailed account ledger.
• Verify every assessment and fee.
• Check whether payments were properly credited.
• Determine whether a lien was actually recorded.
• Obtain the recording information.
• Review any notice deadlines.
• Ask whether attorney fees and collection costs are authorized.
• If foreclosure has been threatened or initiated, obtain legal advice promptly.

If the balance is disputed, preserve copies of checks, bank records, emails, letters, account statements, and notices.

What Can HOA Boards Do to Reduce Lien Disputes?

HOA boards can reduce collection disputes by maintaining accurate assessment records and following the association’s governing documents consistently.

A strong collection process should identify:

• The assessment authority.
• The date each assessment became due.
• Any applicable late fees or interest.
• Payments received.
• Credits or adjustments.
• Collection costs.
• The date and recording information of any lien.
• Required notices.
• The authority for foreclosure or other enforcement action.

The association should also distinguish between what its governing documents authorize and what Michigan statutory law independently permits.

This documentation becomes particularly important when a homeowner challenges the amount of a lien or argues that the association failed to follow its own procedures.

Michigan HOA Lien Laws: Key Points at a Glance

Question	General Michigan Rule
Does Michigan have one comprehensive HOA statute?	No single comprehensive statute governs ordinary non-condominium HOAs.
Do condominium associations have statutory assessment liens?	Yes, under MCL 559.208.
Can a condominium assessment lien be foreclosed?	Yes, by action or advertisement under the statute.
Is a 10-day notice required for condominium lien foreclosure?	MCL 559.208 requires service of the recorded notice of lien at least 10 days before foreclosure proceedings begin.
Condominium redemption period?	Generally, 6 months; 1 month if abandoned.
Can an HOA lien affect a sale or refinance?	Yes. A recorded lien can affect title and closing.
Do condominium lien priority rules automatically apply to ordinary HOAs?	No. The association type and governing documents must be examined.

The condominium-specific rules in this table are based primarily on MCL 559.208.

Important Difference: HOA vs. COA in Michigan

One of the most common mistakes in researching Michigan HOA lien laws is treating every community association as though it is governed by the same statute.

A COA, or condominium association, operates under Michigan’s Condominium Act. That law specifically addresses assessment liens, lien priority, foreclosure, notice, and redemption.

A traditional HOA in a deed-restricted subdivision may instead rely primarily on its recorded declaration and other governing documents. Michigan’s nonprofit corporation law may govern the association’s corporate structure and operation, but it should not be confused with a statute that automatically grants every HOA the same assessment-lien rights provided to condominiums.

That distinction should be confirmed before calculating a payoff, challenging a lien, or beginning foreclosure proceedings.

Frequently Asked Questions