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.
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by Raymond Daniel Burke | Mar 26, 2013
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…)
by Raymond Daniel Burke | Mar 26, 2013
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…)
by Raymond Daniel Burke | Mar 22, 2013
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…)
