by Raymond Daniel Burke | Mar 6, 2014
The Maryland Senate, by a vote of 36 – 11, has passed legislation that would prevent 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. As dicussed in an earlier post on this blog, Senate Bill 207 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. The proposed new law would also preclude limits on the rights of condominium councils or individual unit owners to bring claims relating to an alleged failure of the developer to comply with building codes, county approved plans and specifications, product manufacturer’s installation instructions, and other construction industry standards. Proposed new Section 11-134.1 of the Maryland Condominium Act would prohibit provisions designed to prevent the filing of a claim within the applicable period of limitations or prevent claims from accruing pursuant to the “discovery rule.” The new law would also preclude provisions requiring a vote of the unit owners approving the initiation of a claim, unless such a requirement is adopted after the unit owners assume control of the community from the developer.
However, a companion bill in the House of Delegates, HB 259 received an unfavorable vote in the House Environmental Matters Committee. It remains to be seen whether compromise between the two houses on a joint bill can be accomplished.
by Raymond Daniel Burke | Feb 7, 2014
Senate Bill 274, now pending before the Maryland General Assembly, would require that residential property managers for condominiums, cooperatives and homewoner associations be registered with the Maryland Department of Licensing and Regulation. Unlike House Bill 10, which calls for a licensing process, the Senate proposal would have the Department issue registration certificates that would be renewed every two years. An applicant, in addition to paying a registration fee, would be requried to identify all of the communities that they mangage, and certify that they are covered by fidelity insurance. The Department would be authorized to establish other requirements for registrants, and to investigate complaints alleging a failure to comply with the applicable provisions, or refer complaints to the State’s Attorney’s Office.. Failures to comply could result in misdemeanor and fine.
by Raymond Daniel Burke | Feb 7, 2014
The Maryland General Assembly is again considering legislation that would prevent 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. Senate Bill 207 and House Bill 258 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. The proposed new law would also preclude limits on the rights of condominium councils or individual unit owners to bring claims relating to an alleged failure of the developer to comply with building codes, county approved plans and specifications, product manufacturer’s installation instructions, and other construction industry standards. Proposed new Section 11-134.1 of the Maryland Condominium Act would prohibit provisions designed to prevent the filing of a claim within the applicable period of limitations or prevent claims from accruing pursuant to the “discovery rule.” The new law would also preclude provisions requiring a vote of the unit owners approving the initiation of a claim, unless such a requirement is adopted after the unit owners assume control of the community from the developer. (more…)
by Raymond Daniel Burke | Jan 30, 2014
Legislation pending the the Maryland General Assembly would require Homeowners Associations to provide information needed by a lot owner in connection with a pending re-sale of their home. House Bill 412 and Senate Bill 229 would both require Homeowners Associations to make re-sale disclosure information available upon written request of a lot owner. Presently, Section 11B-106 of the Maryland Homeowners Association Act provides that certain information be provided to a prospective purchaser in the community, and that certain information be included in the contract of sale. The proposed legislation provides that, within twenty days of receiving a written request from the selling owner, the Association must provide the information necessary for the owner to comply with the disclosure requirements. It also limits the fee that could be charged to the owner for preparing the information to the actual cost up to a maximum of Fifty Dollars. Both bills also would impose this same Fifty Dollar limit in charges by condominium councils of unit owners for furnishing the re-sale disclosure information they are required to provide under Section 11-135 of the Maryland Condominium Act.
by Raymond Daniel Burke | Jan 23, 2014
Legislation pending in the 2014 session of the Maryland General Assembly to regulate property managers of residential communities includes provisions that would require property managers to file a fidelity bond or proof of insurance with the Secretary of the Department of Licensing and Regulation. House Bill 10, in addition to requiring that property managers be licensed, would require that any property manager entering into a contract to provide management services to a condominium, cooperative or homeowners association file proof of a fidelity bond, theft insurance, or other comparable written insurance as may be required by the proposed State Board of Common Ownership Community Managers. The bond or insurance would be required to provide coverage in the lesser amount of $2 million or the highest aggregate amount of the operating and reserve balances of the community under the contract during the prior three months.
