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…)
by Raymond Daniel Burke | Aug 6, 2013
The House of Representatives is considering a bill to make condominiums, as well as housing cooperatives, eligible to receive grants for storm recovery relief for common element damage. H.R. 2887, introduced by several members of the House representing New York, would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide that individuals eligible for FEMA assistance under the Act include the associations that govern condominiums and housing cooperatives with respect to the property elements that are the responsibility of the assoication. It further would provide that the maximum amount that an association may receive could be adjusted by regulation and not limited to the amounts payable to indiviual homeowners. (more…)
by Raymond Daniel Burke | Jun 25, 2013
The interpretation of condominium resale disclosure requirements remains unclear as a result of certain Maryland court decisions and the Maryland General Assembly’s failure to provide clarification during the 2013 Session. Those disclosure requirements are intended to provide prospective condominium purchasers with sufficient information about potential expenses so as to permit them to make an informed purchase decision. Uncertainty arose when the Maryland Court of Appeals, in a footnote concerning an issue not even before the Court, offered the opinion that the required disclosure of known code violations, at the time of resale of a unit, under Section 11-135 of the Maryland Condominium Act, refers only to “charged violations.” While this observation was offered in dicta, and is not binding law, it suggested that knowledge of building or health code violations, that ultimately could lead to expensive repairs, need not be disclosed to a would-be purchaser unless the condition had been formally cited by the local code authority. During the 2013 session, legislation was considered that would have touched on this issue by requiring disclosure of “potential” special assessments, but the proposed new law was never enacted. Subsequently, in at least one unreported opinion, the Maryland Court of Special Appeals relied on the Court of Appeals statement to hold that knowledge of a violation requires “notice or citation from an official enforcement agency.” While the unreported opinion is also not binding law, the two decisions have clearly suggested a limited disclosure requirement that may not provide the level of information intended by the statute. (more…)
by Raymond Daniel Burke | Jun 7, 2013
A bill that would have prevented residential condominium developers from including provisions in declarations, bylaws and sales contracts that limit the rights of condominium councils and unit owners to bring claims, specifically targeting warranty claims against the developer, passed in the Maryland Senate, but failed in committee in the House. Senate Bill 167, which passed by a vote of 44 – 0, would have added new Section 11-134.1 to the Maryland Condominium Act. It would have made certain provisions in governing unenforceable, and would have limited the scope of others. (more…)
