by Raymond Daniel Burke | Mar 8, 2019
Senate Bill 374 and House Bill 250, pending in the Maryland General Assembly, would expand the portion of a condominium’s lien that has a priority over a first mortgage or first deed of trust. Under the current provisions of Section 11-110 of the Maryland Condominium Act, a portion of a condominium’s lien for delinquent assessments has a priority consisting of four months of assessments limited to a maximum of $1,200. Additionally, it is limited to regular assessments only, and my not include (1) interest; (2) costs of collection; (3) late charges; (4) fines; (5) attorney’s fees; (6) special assessments; or (7) “any other costs or sums due under the declaration or bylaws of the condominium or as provided under any contract, law or court order.” The proposed law would expand the priority to six months of assessments, eliminate the maximum limitation, and allow inclusion of the list of seven items that are now expressly precluded.
by Raymond Daniel Burke | Mar 7, 2019
By a vote of 139 – 0, the Maryland House of Delegates has passed legislation that would make condominium unit owners responsible for a larger amount of the insurance deductible when the condominium’s policy pays for damage from an issue that originates in the owner’s unit. Under Section 11-114, a condominium must maintain property insurance on the entire property, including the common elements and the units, except for improvements and betterments installed in the units by the owners. Where damage originates from a component of a unit, the liability of the unit owner is limited to the insurance deductible under the condominium’s policy up to a maximum of $5,000. HB 249 would double the unit owner responsibility to $10,000. The bill also adds clarifying language with regard to damage that is a common expense. The current law provides that any damage originating from the common elements is a common expense. HB 249 provides that this also would include damage originating from “an event outside of the condominium units and the common elements.” The bill now moves onto the Senate Judiciary Committee.
