by Raymond Daniel Burke | Jan 22, 2014
Maybe it is the weather, but we have been receiving a number of questions about condominium insurance coverage as between the common elements and units. Here is a summary: A condominium master policy must, at a minimum, cover property damage to all of the condominium structure, including both the common elements and units as originally constructed and finished by the developer, with the unit owners providing individual insurance for their improvements and personal contents. Section 11-114 of the Maryland Condominium Act states that the council of unit owners is required to maintain insurance “[f]or property and casualty losses to the common elements and the units, exclusive of improvements and betterments installed in the units by the unit owners other than the developer.” (more…)
by Raymond Daniel Burke | Dec 13, 2013
I have received some questions regarding the new law, which took effect on October 1, 2013, that limits the basis for foreclosure of a lien on a condominium unit by the council of unit owners and foreclosure of a lien on a property by a homeowners association. The new law modifies Section 14-204 of the Real Property Article of the Maryland Annotated Code to prohibit condominiums and homeowners associations from foreclosing on liens for anything other than delinquent periodic or special assessments; meaning that unpaid fines may not be the basis for a lien foreclosure. Additionally, the new law requires that related costs and fees be limited to “reasonable costs and attorney’s fees directly related to the filing of the lien and not exceeding the amount of the delinquent assessments.”
Unpaid fines and other charges may still form the basis of a lien, but the lien may not be foreclosed on the basis. (more…)
by Raymond Daniel Burke | Oct 25, 2013
The Ocean City Condo Show is this weekend at the R.E. Powell Ocean City Convention Center, Saturday, October 26 and Sunday, October 27. Please look for the ad for this blog in the show program and in this week’s edition of The Bayside Gazette and Ocean City Today.
by Raymond Daniel Burke | Sep 25, 2013
An amendment to the Maryland Contract Lien Act, as it relates to the foreclosure of liens by condominiums and homeowners associations, takes effect on Tuesday, October 1, 2013. The new law modifies Section 14-204 of the Real Property Article of the Maryland Annotated Code to prohibit condominiums and homeowners associations from foreclosing on liens for anything other than delinquent periodic or special assessments. As a result, unpaid fines or other charges may not be the basis for a lien. Additionally, the new law requires that related costs and fees imposed in connection with the lien be limited to “reasonable costs and attorney’s fees directly related to the filing of the lien and not exceeding the amount of the delinquent assessments.” The law expressly provides that it is “to apply only prospectively and may not be applied or interpreted to have any effect on or application to any lien filed before the effective date.” (more…)
by Raymond Daniel Burke | Sep 24, 2013
A new Maryland law that permits closed condominium board meetings for the purpose of discussing business transactions takes effect this coming Tuesday, October 1, 2013. House Bill 388 and Senate Bill 197 were both approved by unanimous votes in each house of the Maryland General Assembly and signed by the Governor. The new law amends Section 11-109.1 of the Maryland Condominium Act to provide that the board of directors of a condominium council of unit owners may meet in closed session for “consideration of the terms or conditions of a business transaction in the negotiation stage if disclosure could adversely affect the economic interests of the council of unit owners.” (more…)
by Raymond Daniel Burke | Sep 16, 2013
Under Section 11-109(c)(16) of the Condominium Act, the developer of a condominium is required to provide certain notices and materials in connection with the first meeting of the council of unit owners at which the unit owners assume control of the condominium. The developer must provide notice to all unit owners that the necessary percentage of units have been sold in order to pass control from the developer to the unit owners, and the specifics of a meeting to be held for the election of an independent board. Following the meeting, the developer is then required to turnover various materials, including (1) drawings, architectural plans or other documents setting forth the necessary information for location, maintenance, and repair of all condominium facilities; (2) the condominium funds, including operating funds, replacement reserves, investment accounts, and working capital; (3) the tangible property of the condominium; and (4) a roster of current unit owners, including mailing addresses, telephone numbers, and unit numbers. If the developer fails to comply with these requirements, any unit owner in the condominium may submit the dispute top the Consumer Protection Division of the Maryland Attorney General’s Office, which is expressly authorized under Section 11-109(c)(16)(vi) to resolve the issue. (more…)
