Michigan Laws 559.183 – Preliminary reservation agreement; use; condominium buyer’s handbook; placing payment in escrow; cancellation of agreement; refund; treating payment as if made under purchase agreement
Current as of: 2024 | Check for updates
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(1) After filing a notice under section 71, a preliminary reservation agreement may be used by a developer to reserve a condominium unit for a prospective purchaser. During the time reservations are being accepted, a condominium buyer’s handbook shall be available at the condominium project for all prospective purchasers.
(2) Upon receipt of payment under a preliminary reservation agreement, the developer shall place the payment in an escrow account with an escrow agent.
Terms Used In Michigan Laws 559.183
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
(3) A prospective purchaser who has made a payment under a preliminary reservation agreement may cancel that agreement. The developer shall fully refund within 3 business days after notice of cancellation is received all payments made.
(4) If a person who has entered into a preliminary reservation agreement subsequently enters into a purchase agreement, the developer shall treat a payment originally made under the preliminary reservation agreement as if made under a purchase agreement pursuant to section 84.