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Maryland General Assembly Again Considers Registration Requirement For Common Ownership Communities

House Bill 41 now pending in the Maryland General Assembly would require condominiums, homeowner associations and cooperative housing corporations to register annually with the Maryland Department of Assessments and Taxation. Similar to a bill that was filed during the 2016 session but did not pass, the proposed law would require registration information that includes the name and contact information for each officer, board member, and property manager. along with such other information as the Department might require.  The bill proposes a $3 registration fee, and a $50 fine for failing to register.

Maryland Federal Court Approves Residential Sales Contract Provision Creating a One-Year Period of Limitations

In Daniels v. NVR, Inc., t/a Ryan Homes, the United States District Court for the District of Maryland upheld the validity of a contractual provision in a residential home purchase agreement that reduced the normal period of limitations for filing suit to one-year, despite the fact that the parties had entered into a tolling agreement.  In Maryland, the general period of limitations applicable to most civil claims is the three-year period established in Md. Cts. & Jud. Proc. Code Ann. Sec. 5-101.  This case involved construction defect claims concerning a newly constructed home.  The NVR purchase agreement contained a provision that made claims and disputes subject to a one-year period of limitations. The Court, which had jurisdiction on diversity found that this was not inherently unreasonable, and, therefore, was fully enforceable.

Interestingly, the parties had entered into a tolling agreement, which suspended the running of limitations during attempts to come to a resolution of the issues.   However, NVR successfully argued that the tolling agreement only suspended “statutes of limitations,” and did not toll a “contractual limitations period.”

Ober Kaler Joins Baker Donelson

Effective January 1, Ober|Kaler joined the national firm, Baker Donelson. The combined firm maintains the name Baker Donelson and has more than 800 attorneys across 25 offices in ten states and Washington, D.C.  I am excited and privileged to begin 2017 as a Baker Donelson shareholder in their Baltimore office, and look forward to continuing communications and sharing of information with the many readers and followers of this blog.

Mandatory Requirements for Adoption of an Annual Budget

The Maryland Condominium Act, at Section 11‑109.2, makes mandatory an annual budget, and requires that the proposed budget be submitted to the unit owner membership at least 30 days before it is adopted.  It is also required that the budget contain seven specific line items.  These line items — income, administration, maintenance, utilities, general expenses, reserves, and capital items — must be set forth in the budget without exception and without to regard to any other line items that may be included.  The adoption of the budget is required to take place at an open meeting of the owners.  Here is the complete test of Section 11-109.2:

(a)        Preparation and submission.—The council of unit owners shall cause to be prepared and submitted to the unit owners an annual proposed budget at least 30 days before its adoption.

(b)        Items required to be included. – The annual budget shall provide for at least the following items:

(1)  Income;

(2)  Administration;

(3)  Maintenance;

(4)  Utilities;

(5)  General expenses;

(6)  Reserves; and

(7)  Capitol items.

(c)        Adoption. – The budget shall be adopted at an open meeting of the council of unit owners or any other body to which the council of unit owners delegates responsibility for preparing and adopting the budget.  (more…)