Michigan Compiled Laws

Mich. Comp. Laws § 559.183 (2026)

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 July 2026

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CONDOMINIUM ACT

Act 59 of 1978

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.

Sec. 83.

(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.

(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a preliminary reservation agreement subsequently enters into a purchase agreement, the developer shall treat a payment originally made under the preliminary reservation agreement as if made under a purchase agreement pursuant to section 84.

History: 1978, Act 59, Eff. July 1, 1978 ;-- Am. 1982, Act 538, Imd. Eff. Jan. 17, 1983

Notes of Decisions

Cited in 2 cases, 1988–2016 · leading case: Marina Bay Condos., Inc v. Schlegel, 423 N.W.2d 284 (Mich. Ct. App. 1988).

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Marina Bay Condos., Inc v. Schlegel, 423 N.W.2d 284 (Mich. Ct. App. 1988). · cites it 4× “See MCL 559.183; MSA 28.50(183) and MCL 559.184; MSA 26.”

Robert Gordon v. Cornerstone Rg LLC (Mich. Ct. App. 2016). · cites it 2× “MCL 559.183. To the extent that it is evident on the face of the arbitration award that the master deed had not been recorded, this does not invalidate the contract the parties executed.”

— Mich. Comp. Laws § 559.183(3) — 1 case

Marina Bay Condos., Inc v. Schlegel, 423 N.W.2d 284 (Mich. Ct. App. 1988). “See MCL 559.183; MSA 28.50(183) and MCL 559.184; MSA 26.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.