by Raymond Daniel Burke | Aug 19, 2009
If you have bought a new home in Maryland during the last several years, including a new condominium, your purchase likely included what are commonly referred to as “ten-year warranty” policies.” But a careful reading of the typical provisions of many of these policies reveals that the suggested coverage benefits are nearly non-existent. In fact, the policies often offer little, if anything, beyond the warranty obligations that the law imposes on new home sellers regardless of whether a warranty policy is offered. The initial coverage under these policies is usually not provided by the warranty company, but is the builder’s obligation alone; an obligation that the builder would have in any event. Only in year three does the policy coverage usually commence, and then only for “structural defects,” and only if one of numerous exclusions does not apply. Indeed, these policies do not provide any meaningful reason for homebuyers to feel assured that building defects in their new home will be corrected for a period of ten years. (more…)
by Raymond Daniel Burke | Aug 7, 2009
The law governing condominium insurance requirements, which changed in 2008 as a result of a court decision, has changed again as result of amendments to the Maryland Condominium Act effective June 1, 2009. During the last legislative session, the Maryland General Assembly took action on the issue in direct response to a 2008 Court of Appeals decision concerning the allocation of responsibilities for property damage between a condominium council and the individual unit owners. The new law establishes that the condominium master insurance policy must cover all of the building elements, including the units, except for improvements installed in the unit by the owners after construction. However, where the damage originates in a unit, that unit owner is responsible for any insurance deductible under the council’s policy, up to a maximum of $5,000. (more…)
by Raymond Daniel Burke | Jul 27, 2009
An important consideration of nearly all purchasers of residential condominium units is the fact that a condominium provides the advantages of home ownership without the time-consuming and laborious tasks that are an expected part of maintaining a house and property. After all, exterior maintenance is taken care of by the association. But that does not mean that maintenance and repair issues are something with which condominium owners need not be concerned. On the contrary, there are several reasons why building issues should be matters of extreme urgency in a condominium setting.
It is important to first understand the condominium form of ownership. The purchaser buys a unit that is owned in the same way that an individual home would be owned, but also receives an ownership interest, in common with all other owners, in the common elements of the complex. Each owner’s property, therefore, includes all of the common elements in addition to their unit. This means that maintenance and repair issues in the common elements effect the value, maintainability, and useful life of every owner’s property. (more…)
by Raymond Daniel Burke | Jul 6, 2009
When mold was discovered in part of the Hilton Hawaiian Village in Honolulu, it ultimately resulted in the closing for more than a year of an entire 453-room 25-story tower. It is reported that Hilton spent some $20 Million on consulting and investigation costs, and an additional $35 Million in the remediation. This is one notable example among many of how the presence and growth of mold in homes and commercial buildings has developed into a serious issue that has potentially far reaching consequences for residential and commercial property owners and managers, as well as for the construction and insurance industries.
Several states have established task forces to study mold and its effect on buildings and indoor air quality. However, the intelligent dialogue required for the development of proper standards for mold exposure and remediation has, in large part, been drowned out by extreme voices. On the one hand are those who summarily dismiss the issue as the fabricated product of a conspiracy between tort lawyers and a developing cottage industry of mold remediation consultants. On the other are those readily prepared to broadly attribute a wide variety of medical conditions to the unhealthy environment of “sick buildings.” (more…)
by Raymond Daniel Burke | Jun 19, 2009
If you have decided that the condominium lifestyle is for you, and have purchased a sparkling new unit in a recently constructed complex, you probably take comfort in the fact that Maryland law provides for a three-year warranty on major components of the common elements. However, you may not be aware that when you purchased your unit, the three-year warranty was probably already running, and, in fact, may even have expired. That is because the common element warranty, does not begin to run when you settle on your unit, but, instead, commences when the first unit sold in the complex settles. As a result, where the size of the condominium or the slowness of the market results in the project taking a period of years before all units are sold, it is possible that many purchasers may take title when the three year common element warranty has nearly, if not already, expired.
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