Maryland Condo Law Blog

Senate Bill 665, which passed during the 2024 session of the Maryland General Assembly and has been signed into law by the Governor, reduces the percentage of unit owner votes needed to amend a condominium declaration from 80 percent to 66 2/3 percent.  The new lower percentage applies only in the event that there are no units still owned by the condominium’s developer.  Where the developer continues to own any units, the 80 percent requirement still applies.  The 80 percent requirement also will continue to apply to a corrective amendment under Section 11-103.1 of the Condominium Act.  The new law amends Section 11-103(c) of the Condominium Act and will take effect on October 1, 2024.  It retains all of the previous limitations on declaration amendments:

A new law, passed by both houses during the 2024 session of the Maryland General Assembly and signed by Governor Moore, permits a condominium to lease clean energy equipment as part of the common elements.  House Bill 216/Chapter 253 empowers a condominium board of directors to “grant leases in excess of 1 year or similar interests affecting the common elements of the condominium for the installation and use of leased clean energy equipment.”  For purposes of this provision, clean energy equipment includes “electric vehicle recharging equipment, solar energy equipment, and energy storage systems.”   The legislation amends Section 11-125(f) of the Maryland Condominium Act, which generally provides that a declaration or bylaws may give the council of unit owners authority to grant easements, rights-of-way, licenses and leases in excess of one year affecting the common elements, with the approval of two-thirds of the unit owners and the consent of mortgagees.  New subsection (5) gives a majority of the board of directors authority to approve the leasing of clean energy equipment, without unit owner or mortgagee approval, by a vote at a board meeting with 30-days’ notice to the unit owners.  It is further provided that a mortgagee or group of mortgagees may not overrule the board’s vote.  The new law will take effect on October 1, 2024.

A new law, that will take effect on October 1, 2024, removes some of a council of unit owners’ resale disclosure requirements, and also provides that disclosure of knowledge concerning the presence of asbestos be made by the selling unit owner.  Both houses of the General Assembly (House Bill 143 and Senate Bill 292), passed legislation, which has been signed into law by Governor Moore, amending Section 11-135 of the Condominium Act.  The new provisions remove the current requirements that a resale certificate provided to a prospective purchaser by the council include (1) a description of any recreational or other facilities which are to be used by the unit owners or maintained by them or the council, and a statement as to whether or not they are to be a part of the common elements; (2) a statement as to whether the council has entered into any agreement that settles or releases the council’s claims related to common element warranties under § 11-131; and (3) a statement as to whether the board of directors has disclosed to the council the board’s intention to enter into an agreement for the purpose of settling a disputed common element warranty claim under § 11-131.   These required disclosures will be deleted when the law takes effect.

Additionally, the new law removes the council’s disclosure requirement regarding knowledge of the presence of asbestos. Instead, it changes the council’s requirements under Section 11-135(g)(10) concerning disclosure of knowledge of health and building code violations to include asbestos.  This provision will now require:  “A statement as to whether the council of unit owners has
knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium, including any violation of the health or building codes related to asbestos.”

Also added is requirement that disclosure with regard to asbestos now be made by the selling unit owner under new Section 11-135(a)(5)(vii), which provides that the unit owner must disclose knowledge “of the presence of asbestos in the unit, including a description of the location of the asbestos, and whether abatement has been performed in the unit during the occupancy of the owner.”

Finally, the new legislation amends Section 11-126 of the Condominium Act to require that, in an initial sale of a unit, the developer must provide “a statement as to whether the vendor has actual knowledge of the presence of asbestos, including a description of the location of the asbestos, whether abatement has been performed, and the date of any abatement.”

House Bill 143, cross-filed with Senate Bill 46 in the current session of the Maryland General Assembly, would require contracts for the initial sale of a condominium unit to include a statement as to whether the seller has actual knowledge of the presence of asbestos on the site, along with a description of the location of the asbestos, whether an abatement has been performed, and the date of any abatement. The bills propose to add new subsection (iii) to Section 11-126(a) of the Condominium Act, which identifies items that an initial sales contract must contain in conspicuous type. The items presently required are (i) the purchaser’s right to receive a public offering statement and the purchaser’s rescission rights; and (i) the warranties under Section 11-131 and whether the council has entered into an agreement to settle or release the council’s claims under the common element warranties. A similar asbestos disclosure bill passed the House during the 2023 session, but did not receive a vote in the Senate.