by Raymond Daniel Burke | Mar 12, 2013
The Maryland General Assembly is considering a bill that would require that condominium unit owners, under certain qualifying circumstances, be permitted to rent their units even where the condominium governing documents limit the number of units that can be rented. House Bill 1195 would add new Section 11-111.4 to the Maryland Condominium Act, and provide that unit owners who had experienced a “financial event” be allowed to rent their units despite a provision in the governing documents limiting the number or percentage of units that can be rented. (more…)
by Raymond Daniel Burke | Mar 11, 2013
House Bill 1141, now pending in the Maryland General Assembly, would prevent 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. It would add new Section 11-134.1 to the Maryland Condominium Act, which would make certain provisions in governing unenforceable, and would limit the scope of others. (more…)
by Raymond Daniel Burke | Mar 6, 2013
House Bill 811, now pending before the Maryland General Assembly, would establish new notice requirements before a condominium, cooperative housing corporation or homeowner association would be able to pursue lien foreclosure for unpaid assessments. The proposed enactment of new Section 7-105.13 of the Real Property Article of the Annotated Code of Maryland would require that an action to foreclose a lien may not be filed until 45 days after written notice of intent to foreclose is provided. A complaint foreclose a lien would have to be accompanied by an affidavit establishing the debt owed and a copy of the notice of intent to foreclose. A foreclosure sale could not occur until at least 45 days after service of the complaint and supporting documents. (more…)
by Raymond Daniel Burke | Mar 5, 2013
The Maryland General Assembly is considering a bill that would clarify the language of the Maryland Contract Lien Act regarding the right to maintain a suit for monetary damages in addition to foreclosure. The proposed revisions in House Bill 628 would make clear that a lien holder, including liens for unpaid assessments held by a condominium council of unit owners, could be subject to a monetary suit for damages, even if the lien has not been foreclosed; that such suits for monetary damages may include costs and attorney’s fees; and that, after foreclosure, a suit for monetary judgment could be brought for any deficiency either within the foreclosure proceeding or as a separate suit. (more…)
by Raymond Daniel Burke | Feb 28, 2013
A bill now pending in the Maryland Legislature would prevent condominium’s, cooperative housing corporations, and homeowner associations from including in a lien foreclosure action amounts due for fines and attorney’s fees incurred in recovering fines. Instead, under House Bill 286, foreclosure of a lien could only involve delinquent monthly or special assessments. (more…)
by Raymond Daniel Burke | Feb 25, 2013
House Bill 23, now before the Maryland General Assembly, would require information concerning “potential” special assessments to be included in resale contracts for both condominium units and properties subject to a homeowers association. Perhaps in response to the protracted litigation in MRA Property Management, Inc. v. Armstrong, 426 Md. 83, 43 A. 3d 397 (2012), which concerned the alleged failure to disclose knowledge of defects that would ultimately require special assessments to repair, the proposed legislation would amend Section 11-135 of the Maryland Condominium Act and Section 11B-106 of the Maryland Homeowners Association Act to require that any resale contract include a notice of “any potential special assessment that is referenced within the preceding 12 months in” (1) the agenda or minutes of any meeting of the board of directors of a condominium, or the governing body of a homeowners association; or (2) a vote at a meeting of a condominium’s council of unit owners or a homeowners association. As proposed, the new requirement would apply to a mere reference to the possibility of a special assessment, and not to just actual special assessment proposals or enactments.
