Maryland Condo Law Blog
An online resource for condominium and homeowner associations and their members, and for developers, builders, contractors, architects, engineers and others in the building industry.
Maryland’s Statute Of Repose Prevents Some Construction Defect Claims In Properties More Than 10-Years-Old And Bars All Claims After 20 Years
In terms of the accrual of causes of action, Maryland abides by the discovery rule, through which a cause of action arsies when it is disovered or should have been discovered in the exercise of reasonable diligence. Once discovered, a claim must then be instituted within 3 years under Maryland’s general statute of limitations. However, where construction defects are concerned, the discovery rule does not permit building defect claims in older properties. Under Maryland’s Statute of Repose, construction defect claims are absolutely barred after 20 years, regardless of when they were or could have been discovered. Additionally, architects, professional engineers and contractors can be held liable for building defects for just 10 years after construction. The full statute is set forth in the Courts & Judicial Proceedings Code of the Annotated Code of Maryland at Section 5-108.
Maryland General Assembly Declines To Enact Proposals To Regulate Residential Property Managers
Both houses of the Maryland General Assembly rejected bills that would have created a regulatory system for property managers. Senate Bill 274 died in the Judicial Proceedings Committee, while House Bill 10 suffered the same result in the Environmental Matters Committee. Each bill would have brought residential property managers for condominiums, cooperatives and homewoner associations under the jurisdiction of the Maryland Department of Licensing and Regulation. The Senate bill called for a registration process, while the more broad House version would have established a formal licensing procedure. read more…
Maryland House of Delegates Fails To Pass Senate Approved Legislation To Limit Condo Developer Liability
The Maryland House of Delegates failed to take action on House Bill 259, which would have prevented residential condominium developers from including certain provisions in the project’s governing documents or sales contracts that limit the developer’s liability for construction defects. The Maryland Senate, by a vote of 36 – 11, passed Senate Bill 207, which would prohibit provisions in the declaration, bylaws or rules and regulations that limit the ability of a council of unit owners to file suit on behalf of itself or the unit owners or enforce warranty claims. However, the House version died the Environmental Matters Committee. read more…
Bill To Remove Limit On Condo Rentals In Hardship Cases Fails in Maryland General Assembly
The Maryland General Assembly failed to take action on a bill that would require condominiums to remove limits on the number or percentage of units that can be rented, if the unit owner demonstrates “financial hardship” and meets certain other requirements. House Bill 1039 proposed to establish new Section 11-111.4 in the Maryland Condominium Act, and provide that unit owners who meet one of the bill’s six definitions of financial hardship may request a waiver from any rental limitations applicable to the community. The unit must be the owner’s primary residence, and the appraised value of the unit must be less than 90% of what is owed.
Maryland House and Senate Fail To Agree On Versions of HOA Disclosure Requirements And Related Fees
Both the Maryland Senate and House of Delegates passed bills that would require Homeowners Associations to make re-sale disclosure information available upon written request of a lot owner. However, the two houses were unable to agree on a portion of the proposed new law that placed limits on the fees that can be charged by a howeowners association or a condominium council of unit owners for providing resale disclosure information. The Senate version would limit those fees to the lesser of $50 or the actual cost of furnishing the information. The House version would set a limit of $250. The Senate, which was the first to pass SB 229, refused to accept HB 412. The House then refused the Senate’s request to agree to the Senate version. read more…
Maryland Senate Passes Bill Requiring HOAs To Provide Resale Disclosure Information And Limiting Fees Charged By HOAs and Condos
By a vote of 45 – 2, the Maryland Senate has passed SB 229, which would require Homeowners Associations to make re-sale disclosure information available upon written request of a lot owner. Presently, Section 11B-106 of the Maryland Homeowners Association Act provides that certain information be provided to a prospective purchaser in the community, and that specific information be included in the contract of sale. The approved bill provides that, within twenty days of receiving a written request from the selling owner, the homeowners association must provide the information necessary for the owner to comply with the disclosure requirements. It also limits the fee that could be charged to the owner for preparing the information to the actual cost up to a maximum of $50. It also would impose this same $50 limit in charges by condominium councils of unit owners for furnishing the re-sale disclosure information they are required to provide under Section 11-135 of the Maryland Condominium Act. A companion bill is pending before the House of Delegates as HB 412.
Ocean City Home and Condo Show This Weekend
Please look for the ad for this blog in the program for this weekend’s Home and Condo Show in Ocean City. The show begins today and runs through Sunday at the R.E. Powell Convention Center. Hours are Friday Noon – 6:00 pm, Saturday 10:00 am – 6:00 pm, and Sunday 10:30 am – 3:30 pm.
My Commentary In Today’s Baltimore Sun
Here is a link to my opinion/commentary piece in today’s Baltimore Sun: http://www.baltimoresun.com/news/opinion/oped/bs-ed-corvette-economics-20140319,0,1019974.story
Maryland General Assembly Considers Legislation That Would Revise Disclosure Requirements In Condo Sales
House Bill 1080, now pending in the Maryland House of Delegates, would establish revised disclosure requirements and procedures in both initial sales and re-sales of residential condominium units. The most extensive changes would impact re-sale contracts. In addition to providing purchasers with additional rights of rescission, councils of unit owners would be required to furnish information requested by a seller to be disclosed to a purchaser with seven days after the request rather than the current twenty days. In particular, purchasers would be entitled to receive notice of any significant change in the disclosure information once it is provided. With regard to re-sales of existing condominium units, the proposed new law would amend Section 11-135 of the Maryland Condominium Act, which requires certain disclosures to purchasers by both the council of unit owners and the selling unit owner. The bill would also add new Section 11-135.1 to exclusively apply to condominiums having less than seven units. With regard to initial sales of new condominium units, the proposed law would amend Section 11-126, and impose certain new disclosure requirements on developers. read more…
Proposed Maryland Legisation Would Remove Limits On Condo Unit Rentals In Hardship Cases
The Maryland General Assembly is considering a bill that would require condominiums to remove limits on the number or percentage of units that can be rented, if the unit owner demonstrates “financial hardship” and meets certain other requirements. House Bill 1039 would establish new Section 11-111.4 in the Maryland Condominium Act, and provide that unit owners who meet one of the bill’s six definitions of financial hardship may request a waiver from any rental limitations applicable to the community. The unit must be the owner’s primary residence, and the appraised value of the unit must be less than 90% of what is owed. The exception to rental restrictions would be for a term of three years. read more…
ABOUT
The Maryland Condo Law Blog is written by Raymond Daniel Burke. One of the region's top construction and real estate development lawyers, Ray has more than 35 years of experience in matters relating to condominium and other multi-use development matters.