Maryland General Assembly Fails to Pass Legislation Affecting Resale Disclosure Certificates

A bill that was originally intended to require homeowner associations to provide resale certificates, and to limit fees charged by condominium and homeowner associations for providing resale certificates, passed both houses of the Maryland General Assembly, but the two houses were unable to reconcile amendments, including one intended to limit the association’s liability for inaccurate information contained in those certificates.  The Maryland Senate and the House of Delegates both passed versions of House Bill 1007.  As originally proposed, HB 1007 would have limited the fee charged by condominium councils of unit owners for providing required information in connection with the resale of a unit.  It also provided that required resale disclosure information to be furnished by a homeowners association as part of the sale of a home in the community.  These requirements were retained in the amended versions passed by both houses.  One amendment changed the amount of the fee that could be charged.  Further amendments provided for two additional fees associated with the resale process.  A significant amendment provided that “[a]ny liability of the council of unit owners for an error or omission in the certificate shall be limited to the amount of the fees paid for the certificate.” Although versions of the bill were passed on the floor of both houses, a final version to reconcile the amendments was not produced before the session ended.