by Raymond Daniel Burke | Jan 23, 2014
Legislation pending in the 2014 session of the Maryland General Assembly to regulate property managers of residential communities includes provisions that would require property managers to file a fidelity bond or proof of insurance with the Secretary of the Department of Licensing and Regulation. House Bill 10, in addition to requiring that property managers be licensed, would require that any property manager entering into a contract to provide management services to a condominium, cooperative or homeowners association file proof of a fidelity bond, theft insurance, or other comparable written insurance as may be required by the proposed State Board of Common Ownership Community Managers. The bond or insurance would be required to provide coverage in the lesser amount of $2 million or the highest aggregate amount of the operating and reserve balances of the community under the contract during the prior three months.
by Raymond Daniel Burke | Jan 22, 2014
Maybe it is the weather, but we have been receiving a number of questions about condominium insurance coverage as between the common elements and units. Here is a summary: A condominium master policy must, at a minimum, cover property damage to all of the condominium structure, including both the common elements and units as originally constructed and finished by the developer, with the unit owners providing individual insurance for their improvements and personal contents. Section 11-114 of the Maryland Condominium Act states that the council of unit owners is required to maintain insurance “[f]or property and casualty losses to the common elements and the units, exclusive of improvements and betterments installed in the units by the unit owners other than the developer.” (more…)
by Raymond Daniel Burke | Jan 21, 2014
As occurred previously in the most recent legislative sessions, a bill has been filled in the 2014 Maryland General Assembly that propose to establish provisions for the licensing and regulation of property managers of residential communities. House Bill 10 would both amend the Business Occupations and Professions Article of the Maryland Annotated Code to create a State Board of Common Ownership Community Managers in the Department of Licensing and Regulation to issue licenses to the managers of “common ownership communities,” which include condominiums, cooperatives and homeowner associations. Such a license would be required before any individual would be permitted to provide property management services to communities in the State. Applicants would be required to complete a training program and pass an examination, along with paying a licensing fee. The licenses would be issued for two years, and would be renewable upon submission of a renewal applciation and fee.
by Raymond Daniel Burke | Dec 13, 2013
I have received some questions regarding the new law, which took effect on October 1, 2013, that limits the basis for foreclosure of a lien on a condominium unit by the council of unit owners and foreclosure of a lien on a property by a homeowners association. 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; 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.”
Unpaid fines and other charges may still form the basis of a lien, but the lien may not be foreclosed on the basis. (more…)
by Raymond Daniel Burke | Nov 5, 2013
The Maryland Condominium Act contains a somewhat unusual provision that expressly vests broad authority to address violations of the Act in the office of the Attorney General. Section 11-130 provides that, “[t]o the extent that a violation of any provision of this title affects a consumer, that violation shall be within the scope of the enforcement duties and powers of the Division of Consumer Protection of the Office of the Attorney General.” For purposes of this provision, a consumer is defined as “an actual or prospective purchaser, lessee, assignee or recipient of a condominium unit.” Also included as a consumer is any “co-oligor or surety for a consumer.” Accordingly, prospective purchasers and persons having an possessory interest in a condominium unit, alleged to be aggrieved by a violation of any provision of the Condominium Act, may seek the intervention of the Consumer Protection Division of the Attorney General’s Office.
by Raymond Daniel Burke | Oct 25, 2013
The Ocean City Condo Show is this weekend at the R.E. Powell Ocean City Convention Center, Saturday, October 26 and Sunday, October 27. Please look for the ad for this blog in the show program and in this week’s edition of The Bayside Gazette and Ocean City Today.
