by Raymond Daniel Burke | Feb 2, 2018
Both the Senate and House of Delegates are considering legislation that would preclude a condominium developer from including provisions in the community’s governing documents or the sales contracts that limit the ability of the council of unit owners or individual unit owners to bring claims against the developer for construction defects. Senate Bill 258 and House Bill 77 are similar to legislation that was introduced and passed in the House during the 2017 legislative session. The proposed new law would cover claims relating to the developer’s failure to comply with applicable building codes; approved plans and specifications; product manufacturer’s installation instructions; or the implied warranties provided under Maryland law. The legislation would prevent a developer from including language in the condominium’s governing documents or in the purchase agreements that (1) shortens the applicable statute of limitations; (2) waives the application of the discovery rule or other means of determining the claim’s accrual date; (3) requires that the claim be submitted to arbitration within a period shorter than the applicable statute of limitations; or (4) operates to prevent the assertion of a claim within the applicable statute of limitations. (more…)
by Raymond Daniel Burke | Jul 14, 2017
Section 11-133 of the Maryland Condominium Act gives a council of unit owners the right to terminate leases, management contracts, employment contracts, and other contracts entered into by the developer during the period that the developer had control of a majority of the votes in the council. However, that right of termination must be exercised within three (3) years from the date on which majority control of the council passed from the developer to the unit owners. Termination of such contracts, if timely exercised, is effective upon thirty (30) days written notice of termination. Grants to any governmental entity or public utility are not subject to termination. Also, the right of termination exists only for residential, and not commercial, condominiums.
by Raymond Daniel Burke | Jun 27, 2017
The Maryland Court of Appeals has invalidated a rule adopted by a condominium to suspend access to common elements for unit owners who are delinquent in paying assessments. In an opinion issued on June 23, 2017 in the case of Elvation Towne Condominium Regime II, Inc. v. Rose, No. 33, Sept. 2016, the Court held that, in order to restrict access to the common elements as a means of enforcing payment of condominium assessments, such a restriction must be provided in the condominium’s declaration. It may not be adopted by rule promulgated by the board of directors. The ruling affirmed prior rulings in the case by the Circuit Court for Anne Arundel County and the Maryland Court of Special Appeals. (more…)
by Raymond Daniel Burke | Jun 23, 2017
Maryland Governor, Larry Hogan, has signed into law legislation passed in the General Assembly that requires a condominium council of unit owners or a homeowners association to provide at least 30-days notice to all owners of any sale, including a tax sale, of a common element in the condominium or common area in the HOA. What had been Senate Bill 809 and House Bill 1369 in the 2017 session will add new Subsection 11-108(d) to the Maryland Condominium Act, and new Section 11B-106.2 to the Maryland Homeowner Association Act. The notice required to be given must include written notice to every homeowner; posting of a sign on the property; and, if the association has a website, a notice on the home page.
by Raymond Daniel Burke | May 5, 2017
Maryland Governor, Larry Hogan, has signed into law a bill which will reduce the number votes required to amend condominium and homeowner association bylaws. What originated as House Bill 789, (now Chapter 480 of the 2017 legislative session), provides for a reduction in the required percentage vote for an amendment of the bylaws from two-thirds to 60 percent. The original version of the bill passed by the House of Delegates called for a reduction to 55%, but that was ultimately amended in the final version that was passed in both houses of the General Assembly. Additionally, the bill authorizes adopted bylaws to provide for a percentage lower than 60%. The new law will also limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears with regard to assessment payments.
The new provisions will take effect on October 1, 2017.
by Raymond Daniel Burke | Apr 19, 2017
Both houses of the Maryland General Assembly have passed an amended version of legislation that would reduce the number votes required to amend condominium bylaws. As amended, what originated as House Bill 789 would reduce the required percentage vote for an amendment of the bylaws from two-thirds to 60 percent. The original version of the bill called for a reduction to 55%, but that was ultimately rejected in the final version. However, the bill authorizes the bylaws themselves to provide for a percentage lower than 60%. The law would also limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears with regard to assessment payments.
The approved legislation contains similar provisions to reduce the percentage vote required for bylaw amendments under the Maryland Homeowners Association Act.
