Real Property Notes Blog

Alleged Mismanagement not a Defense To Collection of Assessments

In Shoreline East v Gray, an unpublished opinion of the Michigan Court of Appeals, the condominium association pursued collection of over $30,000 in unpaid assessments against the owners in Wayne County Circuit Court.  The owners defended on the basis that the association had mismanaged the property.  The trial court granted the association judgment by summary disposition and the co-owners appealed, in pro per (representing themselves in the appeal).

The court affirmed.  Pursuant to MCLA §559.239, a co-owner may not assert as a set-off or defense to an action for unpaid assessments a claim that the association has not provided management or services.  The court held that, based upon this section, the co-owners' defense was invalid.

Occupational Code does not Prohibit Private Right of Action Against Real Estate Brokers and Salespersons, but they are not Subject to Claims of Professional Negligence (Malpractice)

In Schwartz v Real Estate One, an unpublished Michigan Court of Appeals opinion, the court held,citing a case from 1879, that under common law, real estate agencies were not subject to claims for malpractice.  However, the court found that the occupational code provisions regulating real estate brokers and salespersons did not prohibit a private right of action for violation of the duties stated in the code.

Additionally, the Plaintiff’s counts for breach of contract, fraud, and negligence stated claims on which relief could be granted.  The court reversed the judgment of the trial court dismissing Plaintiff’s complaint for failure to state a claim and remanded for further relief.

© Steve Sowell 2018