by Raymond Daniel Burke | Jul 28, 2017
The United States District Court for the District of Maryland has denied a motion to dismiss filed on behalf of a developer, and allowed claims of a property owner’s association to proceed that concern actions taken while the board was under the control of the developer’s agents. In Greenspring Quarry Association, Inc. v. Beazer Homes Corp., Civil No. JKB-17-646, the association’s suit relates to charges for common area maintenance costs. The assoication alleged that the developer was to be responsible for such charges until title transferred to the association, and claimed that, during the period that the developer controlled the board, the management company had been instructed to bill the association for common area maintenance for several years before title was transferred. The court denied the developer’s motion to dismiss all claims, finding that there were sufficient allegations of an independent duty of care and reasonable reliance on the representations made, and that the claims were stated with sufficient particularity. Notably, the court found that the developer’s agents on the board assumed fiduciary duties to the association when they occupied the board seats.
by Raymond Daniel Burke | Jul 18, 2017
Here is a link to my opinion/commentary in today’s Baltimore Suhttp://digitaledition.baltimoresun.com/infinity/article_popover_share.aspx?guid=cc83bd82-adfa-4b64-a256-ebb7d649fd53n:
by Raymond Daniel Burke | Jul 14, 2017
Section 11-133 of the Maryland Condominium Act gives a council of unit owners the right to terminate leases, management contracts, employment contracts, and other contracts entered into by the developer during the period that the developer had control of a majority of the votes in the council. However, that right of termination must be exercised within three (3) years from the date on which majority control of the council passed from the developer to the unit owners. Termination of such contracts, if timely exercised, is effective upon thirty (30) days written notice of termination. Grants to any governmental entity or public utility are not subject to termination. Also, the right of termination exists only for residential, and not commercial, condominiums.
by Raymond Daniel Burke | Jun 27, 2017
The Maryland Court of Appeals has invalidated a rule adopted by a condominium to suspend access to common elements for unit owners who are delinquent in paying assessments. In an opinion issued on June 23, 2017 in the case of Elvation Towne Condominium Regime II, Inc. v. Rose, No. 33, Sept. 2016, the Court held that, in order to restrict access to the common elements as a means of enforcing payment of condominium assessments, such a restriction must be provided in the condominium’s declaration. It may not be adopted by rule promulgated by the board of directors. The ruling affirmed prior rulings in the case by the Circuit Court for Anne Arundel County and the Maryland Court of Special Appeals. (more…)
by Raymond Daniel Burke | Jun 23, 2017
Maryland Governor, Larry Hogan, has signed into law legislation passed in the General Assembly that requires a condominium council of unit owners or a homeowners association to provide at least 30-days notice to all owners of any sale, including a tax sale, of a common element in the condominium or common area in the HOA. What had been Senate Bill 809 and House Bill 1369 in the 2017 session will add new Subsection 11-108(d) to the Maryland Condominium Act, and new Section 11B-106.2 to the Maryland Homeowner Association Act. The notice required to be given must include written notice to every homeowner; posting of a sign on the property; and, if the association has a website, a notice on the home page.
