If I sell my lot, does an unpaid balance follow me or the property?

Both, and this surprises people. The covenants split an unpaid assessment into two separate obligations.

**The lien stays with the property.** An unpaid assessment becomes a continuing lien on the lot. The covenants say it binds the property in the hands of the owner, their heirs, anyone who inherits under a will, a personal representative, and anyone the property is assigned to. A new owner takes the lot with that lien on it.

**The personal debt stays with you.** The covenants say the personal obligation of the owner who owed the assessment remains that person's personal obligation. It does **not** pass to whoever buys the property — unless the buyer expressly agrees to take it on.

So selling the lot does not erase what you personally owe. And it does not clear the lot for the buyer either. Both obligations exist at the same time, over the same debt.

The covenants say the personal obligation lasts for "the statutory period," which is the time limit set by Michigan law rather than by the covenants.

Practical advice: if you are selling, settle the assessment balance before closing. It is normally handled as part of the closing. If you are buying, ask for written confirmation from the office that assessments are paid. The covenants entitle any owner to ask the Association for a signed certificate stating whether the assessments on a property have been paid, and that certificate is treated as conclusive proof of what it says.

*Source: Restrictive Covenants, Article V, Section 9.*