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Maryland’s Statute Of Repose Prevents Some Construction Defect Claims In Properties More Than 10-Years-Old And Bars All Claims After 20 Years

In terms of the accrual of causes of action, Maryland abides by the discovery rule, through which a cause of action arsies when it is disovered or should have been discovered in the exercise of reasonable diligence.  Once discovered, a claim must then be instituted within 3 years under Maryland’s general statute of limitations.  However, where construction defects are concerned, the discovery rule does not permit building defect claims in older properties.  Under Maryland’s Statute of Repose, construction defect claims are absolutely barred after 20 years, regardless of when they were or could have been discovered.  Additionally, architects, professional engineers and contractors can be held liable for building defects for just 10 years after construction.  The full statute is set forth in the Courts & Judicial Proceedings Code of the Annotated Code of Maryland at Section 5-108.

Maryland General Assembly Declines To Enact Proposals To Regulate Residential Property Managers

Both houses of the Maryland General Assembly rejected bills that would have created a regulatory system for property managers.  Senate Bill 274 died in the Judicial Proceedings Committee, while House Bill 10 suffered the same result in the Environmental Matters Committee.  Each bill would have brought residential property managers for condominiums, cooperatives and homewoner associations under the jurisdiction of the Maryland Department of Licensing and Regulation.  The Senate bill called for a registration process, while the more broad House version would have established a formal licensing procedure. (more…)

Maryland House of Delegates Fails To Pass Senate Approved Legislation To Limit Condo Developer Liability

The Maryland House of Delegates failed to take action on House Bill 259, which would have prevented residential condominium developers from including certain provisions in the project’s governing documents or sales contracts that limit the developer’s liability for construction defects. The Maryland Senate, by a vote of 36 – 11, passed Senate Bill 207, which would prohibit provisions in the declaration, bylaws or rules and regulations that limit the ability of a council of unit owners to file suit on behalf of itself or the unit owners or enforce warranty claims.  However, the House version died the Environmental Matters Committee. (more…)

Bill To Remove Limit On Condo Rentals In Hardship Cases Fails in Maryland General Assembly

The Maryland General Assembly failed to take action on a bill that would require condominiums to remove limits on the number or percentage of units that can be rented, if the unit owner demonstrates “financial hardship” and meets certain other requirements.  House Bill 1039 proposed to establish new Section 11-111.4 in the Maryland Condominium Act, and provide that unit owners who meet one of the bill’s six definitions of financial hardship may request a waiver from any rental limitations applicable to the community.  The unit must be the owner’s primary residence, and the appraised value of the unit must be less than 90% of what is owed.

Maryland House and Senate Fail To Agree On Versions of HOA Disclosure Requirements And Related Fees

Both the Maryland Senate and House of Delegates passed bills that would require Homeowners Associations to make re-sale disclosure information available upon written request of a lot owner.  However, the two houses were unable to agree on a portion of the proposed new law that placed limits on the fees that can be charged by a howeowners association or a condominium council of unit owners for providing resale disclosure information.  The Senate version would limit those fees to the lesser of $50 or the actual cost of furnishing the information.  The House version would set a limit of $250.  The Senate, which was the first to pass SB 229, refused to accept HB 412.  The House then refused the Senate’s request to agree to the Senate version. (more…)