Section R. 559.111 - Shared recreational facilitiesRule 111. Pursuant to section 134 of the act, a recreational facility which is to be enjoyed by condominium co-owners and third parties shall, at a minimum, comply with the following provisions:
(a) When the recreational facilities are owned by the condominium co-owners and are to be used by a third party, all of the following conditions shall be met:(i) Disclosure shall be made to all prospective purchasers that the recreational facilities will be shared with a third party.(ii) The master deed shall define who is entitled to use recreational facilities.(iii) The master deed shall set forth the appropriate financial obligations of all the parties involved.(b) When recreational facilities are owned by a third party and condominium co-owners are obligated to help financially support the recreational facilities, all of the following conditions shall be met:(i) Disclosure shall be made to prospective purchasers of their financial obligations and responsibilities as co-owners to support the recreational facilities. Such disclosure shall include information regarding all fees charged and compensation paid.(ii) The condominium co-owners shall have an equitable vote, as set forth in the disclosure statement, as to the operation and management of the recreational facilities.(iii) An arbitration clause to settle disputes upon consent of the parties shall be included in the condominium legal documents.(iv) The necessary easements shall be established.(v) The books and records of the recreational facilities shall be kept separate from other operations and shall be made available for inspection by the co-owners.Mich. Admin. Code R. 559.111