A new law, that will take effect on October 1, 2024, removes some of a council of unit owners’ resale disclosure requirements, and also provides that disclosure of knowledge concerning the presence of asbestos be made by the selling unit owner. Both houses of the General Assembly (House Bill 143 and Senate Bill 292), passed legislation, which has been signed into law by Governor Moore, amending Section 11-135 of the Condominium Act. The new provisions remove the current requirements that a resale certificate provided to a prospective purchaser by the council include (1) a description of any recreational or other facilities which are to be used by the unit owners or maintained by them or the council, and a statement as to whether or not they are to be a part of the common elements; (2) a statement as to whether the council has entered into any agreement that settles or releases the council’s claims related to common element warranties under § 11-131; and (3) a statement as to whether the board of directors has disclosed to the council the board’s intention to enter into an agreement for the purpose of settling a disputed common element warranty claim under § 11-131. These required disclosures will be deleted when the law takes effect.
Additionally, the new law removes the council’s disclosure requirement regarding knowledge of the presence of asbestos. Instead, it changes the council’s requirements under Section 11-135(g)(10) concerning disclosure of knowledge of health and building code violations to include asbestos. This provision will now require: “A statement as to whether the council of unit owners has
knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium, including any violation of the health or building codes related to asbestos.”
Also added is requirement that disclosure with regard to asbestos now be made by the selling unit owner under new Section 11-135(a)(5)(vii), which provides that the unit owner must disclose knowledge “of the presence of asbestos in the unit, including a description of the location of the asbestos, and whether abatement has been performed in the unit during the occupancy of the owner.”
Finally, the new legislation amends Section 11-126 of the Condominium Act to require that, in an initial sale of a unit, the developer must provide “a statement as to whether the vendor has actual knowledge of the presence of asbestos, including a description of the location of the asbestos, whether abatement has been performed, and the date of any abatement.”
