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Maryland Senate and House Both Have Bills To Limit Collection Of Attorney Fees In Actions Against Homeowners

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…)

Maryland Senate Passes Bill Precluding Limits On The Rights Of Condominiums Councils And Unit Owners To Sue

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…)

Maryland House Passes Revisions to Contract Lien Act

By a unanimous vote, the Maryland House of Delegates passed HB 628, which amends and clarifies the Maryland Contract Lien Act.  The legislation establishes that a party entitled to enforce a lien may also bring suit for money damages without waiving their rights with respect to the lien, and can bring an action to recover any deficiency after foreclosure, either in the foreclosure proceeding or as a separate suit. (more…)

Maryland House And Senate Pass Differing Versions of Bills Precluding Lien Foreclosures Based On Fines

Bills passed in the Maryland House of Delegates and Senate would limit lien foreclosures to claims for delinquent assessments only, and would preclude foreclosure actions based fines and related fees imposed by an association.  The House passed HB 286 by a unanimous vote of 138 – 0, and the Senate passed SB 161 by a vote of 37 – 7.  The primary difference in the two bills is that the House version applies to condominiums and homeowners associations, while the Senate version would also apply to cooperative housing corporations. (more…)

Maryland Senate Versions of House Bills

The following are Maryland General Assembly Senate versions of House bills discussed in previous posts:

Licensing and regulation of property managers – SB 794

Precluding limits on causes of action – SB 167

Limiting liens to delinquent assessments and not fine – SB 161

Resale notice of potential special assessment – SB 176

Closed meetings to consider business transactions – SB 197

Maryland Legislature Considers Limits On Attorney’s Fees Charged To Homeowners

Legislation pending in the Maryland General Assembly would limit attorney’s fees recoverable by condominiums from unit owners, and by homeowners associations from lot owners, in connection with collecting assessments or fines.  House Bill 1532 would add new Section 11-110.1 to the Maryland Condominium Act and new Section 11B-117.1 to the Homeowners Association Act.  It would prohibit a council of unit owners or homeowners association from demanding, collecting or seeking to recover attorney’s fees from a unit owner “unless the amount of the attorney’s fees is reasonable in relation to the amount in controversy or the nature of the non-monetary violation. (more…)