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 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 | 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…)
by Raymond Daniel Burke | Apr 9, 2013
The Maryland General Assembly has passed amendments to the Maryland Contract Lien Act that effect the foreclosure of liens by condominiums and homeowners associations. The changes to Section 14-204 of the Real Property Article of the Maryland Annotated Code 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”. (more…)
by Raymond Daniel Burke | Apr 4, 2013
Bills introduced late in both houses of the Maryland General Assembly would limit the rights of condominiums and homeowners associations to recover attorney’s fees from homeowners. Senate Bill 1062 and House Bill 1532 would apply to actions by councils of unit owners and homeowners associations against individual owners for delinquent assessments or to enforce a nonmonetary violation of the governing documents. The Bills would preclude a condominium or homeowners association from demanding, collecting or seeking to recover attorney’s fees “unless the amount of the attorney’s fees is reasonable in relation to the amount in controversy or the nature of the nonmonetary violation.” (more…)
by Raymond Daniel Burke | Mar 26, 2013
By a unanimous vote, the Maryland Senate approved SB 167, which would prevent residential condominium developers from including provisions in declarations, bylaws, sales contracts or other instruments that limit the rights of condominium councils and unit owners to bring claims, specifically targeting warranty claims against the developer. It would add new Section 11-134.1 to the Maryland Condominium Act, which would make certain provisions of this nature unenforceable, and would limit the scope of others. (more…)
