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Maryland Governor Signs Legislation Permitting Closed Condominium Board Meetings To Discuss Business Transactions

Governor Martin O’Mally has signed legislation passed by the Maryland Senate and House of Delegates that permits closed condominium board meetings for the purpose of discussion business transactions.  House Bill 388 and Senate Bill 197 were both approved by unanimous votes in each house of the Maryland General Assembly.  The new law amends Section 11-109.1 of the Maryland Condominium Act to provide that the board of directors of a condominium council of unit owners may meet in closed session for “consideration of the terms or conditions of a business transaction in the negotiation stage if disclosure could adversely affect the economic interests of the council of unit owners.”  The Governor signed the bill into law on April 9, 2013, and the amendment will take effect on October 1, 2013. (more…)

Maryland Governor Signs Bill Requiring Liens To Be Based Only Deliquent Assessments And Not Other Charges Such As Fines

Governor Martin O’Malley has signed into law legislation passed by the Maryland General Assembly that amends the Maryland Contract Lien Act as it relates to the foreclosure of liens by condominiums and homeowners associations.  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.” (more…)

Maryland General Assembly Passes Limits On Lien Foreclosures

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…)

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 Senate Passes Amendment To Provisions For Termiantion Of Developer Contracts

By a vote of 37 – 7, the Maryland Senate passed SB 162, which provides for amendments to the current provisions applicable to the rights of condominiums and homeowners associations to terminate contracts that were entered into by the developer prior to the property owners having assumed control of the community.  The legislation expands the developer contracts now subject to termination by a subsequently elected independent governing body to include contracts providing “telecommunications, internet, cable, or other video services” in addition to utility services and communications systems. (more…)