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Maryland Legislature Considers Bill To Require Information As To “Potential” Special Assessments In Resale Contracts

House Bill 23, now before the Maryland General Assembly, would require information concerning “potential” special assessments to be included in resale contracts for both condominium units  and properties subject to  a homeowers association.  Perhaps in response to the protracted litigation in MRA Property Management, Inc. v. Armstrong,  426 Md. 83, 43 A. 3d 397 (2012), which concerned the alleged failure to disclose knowledge of defects that would ultimately require special assessments to repair, the proposed legislation would amend Section 11-135 of the Maryland Condominium Act and Section 11B-106 of the Maryland Homeowners Association Act to require that any resale contract include a notice of “any potential special assessment that is referenced within the preceding 12 months in” (1) the agenda or minutes of any meeting of the board of directors of a condominium, or the governing body of a homeowners association; or (2) a vote at a meeting of a condominium’s council of unit owners or a homeowners association.  As proposed, the new requirement would apply to a mere reference to the possibility of a special assessment, and not to just actual special assessment proposals or enactments.