November 29, 2012, Introduced by Rep. McMillin and referred to the Committee on Banking and Financial Services.
A bill to provide for the priority of certain liens in favor
of homeowners associations or property owners associations with
respect to mortgages.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"owners association lien priority act".
Sec. 2. As used in this act:
(a) "Fees" includes, but is not limited to, any assessment,
interest, collection charge, late charge, advance by the
association to pay taxes or another lien, attorney fee, and fine.
(b) "Mortgage" includes a first or subsequent mortgage,
including a purchase money mortgage.
Sec. 3. (1) A lien that exists under the law of this state in
favor of a homeowners association or a property owners association
for unpaid fees owed to the association by a member or former
member has priority over a mortgage lien on the same property,
regardless of the date the mortgage was given, attached to the
property, or was recorded.
(2) The priority under this section applies only to liens that
are properly recorded.