Section R. 559.101 - DefinitionsRule 101.
(1) As used in the act and these rules:(a) "A 100-year flood" means a flood which has a 1% chance of occurring or being exceeded in any given year.(b) "Act" means Act No. 59 of the Public Acts of 1978, as amended, being S559.101 et seq. of the Michigan Compiled Laws.(c) "Advertising material" means a prospectus, pamphlet, circular, form letter, fact sheet, sign, newspaper or magazine ad, or any other sales literature or advertising communication addressed to, or intended for distribution to, prospective purchasers.(d) "Floodplain" means that area of land adjoining a lake, watercourse, or similar body of water which will be inundated by a 100-year flood.(e) "Imposition," with respect to purchasers or the public under section 154(c) of the act, means the existence of any of the following factors, among others:(i) Failure to comply with the act or these rules where such failure would endanger the viability of the project.(ii) Failure to comply with local, state, or federal statutes, ordinances, regulations, or rules where such failure would endanger the viability of the project.(iii) Financial or contractual arrangements which permit the developer to directly or indirectly convey, assign, or otherwise transfer the developer's responsibility to fulfill contractual obligations to the project or to the co-owners in derogation of section 137 of the act.(iv) Publishing written or oral false or misleading statements concerning a condominium project.(f) "Land surveyor" means either a surveyor who is registered in this state as a land surveyor or a civil engineer who is registered in this state as a professional engineer.(g) "Major boundary corners" means those property corners which comprise the total proposed condominium development of a particular project.(h) "Minor boundary corners" means those property corners which are created by an individual phase of the project as it is developed in stages and does not mean a major boundary corner.(i) "Unreasonable risk," with respect to prospective co-owners under section 154(c) of the act, means the existence of any of the following factors:(i) A prospective co-owner is likely to lose the money deposited towards the purchase of a condominium unit.(ii) A prospective co-owner would not receive marketable title to the condominium unit.(iii) The common elements of a condominium project are not completed as advertised or stated in the master deed or disclosure statement.(iv) The developer does not pay the developer's share of the monthly assessments as required by the master deed or other legal documents.(v) The developer enters into loans with, or borrows money from, the association prior to the transitional control date.(vi) The developer fails to keep adequate financial records of income and expenditures of the association of co-owners prior to the transitional control date.(vii) The developer commingles funds of the co-owners' association.(viii) Other actions which materially endanger the public interest or the interest of condominium co-owners.(2) Terms defined in the act have the same meanings when used in these rules.Mich. Admin. Code R. 559.101