by Raymond Daniel Burke | Feb 2, 2018
Both the Senate and House of Delegates are considering legislation that would preclude a condominium developer from including provisions in the community’s governing documents or the sales contracts that limit the ability of the council of unit owners or individual unit owners to bring claims against the developer for construction defects. Senate Bill 258 and House Bill 77 are similar to legislation that was introduced and passed in the House during the 2017 legislative session. The proposed new law would cover claims relating to the developer’s failure to comply with applicable building codes; approved plans and specifications; product manufacturer’s installation instructions; or the implied warranties provided under Maryland law. The legislation would prevent a developer from including language in the condominium’s governing documents or in the purchase agreements that (1) shortens the applicable statute of limitations; (2) waives the application of the discovery rule or other means of determining the claim’s accrual date; (3) requires that the claim be submitted to arbitration within a period shorter than the applicable statute of limitations; or (4) operates to prevent the assertion of a claim within the applicable statute of limitations. (more…)
by Raymond Daniel Burke | Jul 14, 2017
Section 11-133 of the Maryland Condominium Act gives a council of unit owners the right to terminate leases, management contracts, employment contracts, and other contracts entered into by the developer during the period that the developer had control of a majority of the votes in the council. However, that right of termination must be exercised within three (3) years from the date on which majority control of the council passed from the developer to the unit owners. Termination of such contracts, if timely exercised, is effective upon thirty (30) days written notice of termination. Grants to any governmental entity or public utility are not subject to termination. Also, the right of termination exists only for residential, and not commercial, condominiums.
by Raymond Daniel Burke | Jun 23, 2017
Maryland Governor, Larry Hogan, has signed into law legislation passed in the General Assembly that requires a condominium council of unit owners or a homeowners association to provide at least 30-days notice to all owners of any sale, including a tax sale, of a common element in the condominium or common area in the HOA. What had been Senate Bill 809 and House Bill 1369 in the 2017 session will add new Subsection 11-108(d) to the Maryland Condominium Act, and new Section 11B-106.2 to the Maryland Homeowner Association Act. The notice required to be given must include written notice to every homeowner; posting of a sign on the property; and, if the association has a website, a notice on the home page.
by Raymond Daniel Burke | Jun 22, 2017
Beginning in October, Maryland homeowner associations will have the right to collect a fee relating to inspections during the resale process. What had been House Bill 34 in the 2017 session of the General Assembly, and has now been enacted, entitles an HOA to charge “a reasonable fee not to exceed $50 for an inspection of the lot if required.” Under Section 11B-106 of the Maryland Homeowner Association Act, sellers are required to provide certain information to prospective purchasers, much of which is often provided by the Association. Under the statute, the Association can charge “a reasonable fee” for providing this information up to certain limits provided in the statute. The new law adds an additional fee charge for costs relating to an inspection of the property as part of the resale process.
by Raymond Daniel Burke | May 15, 2017
The Maryland Senate failed to vote on SB 670, which would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring claims for building defect issues. The House of Delegates version of the bill was approved by a vote of 136-0, but the Senate version did not make to the floor for a vote. The legislation was intended to prevent condominium developers from limiting the ability of a council of unit owners and individual unit owners to bring claims for building issues. The proposed law would prevent developers from including certain provisions in condominium governing documents or contracts of sale that act as an impediment to claims alleging the failure of the developer to comply with (1) applicable building codes; (2) plans and specifications for the project approved by the local governing authority; (3) manufacturer’s installation instructions for building products used the condominium; and (4) warranty provisions under Sections 10-203 and 11-131 of the Real Property Article. Under the bill passed by the House, a developer would be precluded from including provisions that: (a) shorten the statute of limitations for filing claims; (b) waive application of the “discovery rule” for purposes of determining when a claim accrued; (c) require the council or a unit owner in an arbitration proceeding to assert a claim within a period shorter than the applicable statute of limitations; or (d) operate to prevent a council or unit owner from filing a law suit, initiating arbitration proceedings, or otherwise asserting a claim within the applicable statute of limitations.
by Raymond Daniel Burke | May 5, 2017
Maryland Governor, Larry Hogan, has signed into law a bill which will reduce the number votes required to amend condominium and homeowner association bylaws. What originated as House Bill 789, (now Chapter 480 of the 2017 legislative session), provides for a reduction in the required percentage vote for an amendment of the bylaws from two-thirds to 60 percent. The original version of the bill passed by the House of Delegates called for a reduction to 55%, but that was ultimately amended in the final version that was passed in both houses of the General Assembly. Additionally, the bill authorizes adopted bylaws to provide for a percentage lower than 60%. The new law will also limit the voting to members in “good standing, ” which is defined as not being more than 90 days in arrears with regard to assessment payments.
The new provisions will take effect on October 1, 2017.
