Skip to main content
April 04, 2014

Purchaser of a sheriff’s deed obtains full legal title that is effective back to the date of the sheriff’s sale once the redemption period expires

In Wells Fargo Bank v Country Place Condominium Association, the Court of Appeals held that a bank, which obtained title to a condominium unit by purchasing the unit at a sheriff’s sale, was responsible for condominium association fees incurred from the date of the sale onward.  Under MCL 559.158, a purchaser of a condominium unit as a result of foreclosure is not liable for condominium association fees “that became due prior to the acquisition of title to the unit.”  The Court rejected the bank’s argument that it should not be responsible for the association fees until the date the redemption period expired and it obtained full legal title.  The Court disagreed with the bank because the purchaser of a sheriff’s deed acquires equitable title on the date of purchase, and once the right to redemption is exercised, the equitable title “automatically becomes full legal title that is effective back to the date of the sheriff’s sale.”  Accordingly, the “acquisition of title” occurred on the date of the sale rather than on the date the redemption period expired.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.

ACCEPTCANCEL

Text

+ -

Reset