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 Senate Passes Bill Limiting Restrictions On Condominium Claims Against Developers
The Maryland Senate, by a vote of 36 – 11, has passed legislation that would prevent 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. As dicussed in an earlier post on this blog, Senate Bill 207 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. The proposed new law would also preclude limits on the rights of condominium councils or individual unit owners to bring claims relating to an alleged failure of the developer to comply with building codes, county approved plans and specifications, product manufacturer’s installation instructions, and other construction industry standards. Proposed new Section 11-134.1 of the Maryland Condominium Act would prohibit provisions designed to prevent the filing of a claim within the applicable period of limitations or prevent claims from accruing pursuant to the “discovery rule.” The new law would also preclude provisions requiring a vote of the unit owners approving the initiation of a claim, unless such a requirement is adopted after the unit owners assume control of the community from the developer.
However, a companion bill in the House of Delegates, HB 259 received an unfavorable vote in the House Environmental Matters Committee. It remains to be seen whether compromise between the two houses on a joint bill can be accomplished.
Maryland Senate Bill Would Require That Residential Property Managers Be Registered
Senate Bill 274, now pending before the Maryland General Assembly, would require that residential property managers for condominiums, cooperatives and homewoner associations be registered with the Maryland Department of Licensing and Regulation. Unlike House Bill 10, which calls for a licensing process, the Senate proposal would have the Department issue registration certificates that would be renewed every two years. An applicant, in addition to paying a registration fee, would be requried to identify all of the communities that they mangage, and certify that they are covered by fidelity insurance. The Department would be authorized to establish other requirements for registrants, and to investigate complaints alleging a failure to comply with the applicable provisions, or refer complaints to the State’s Attorney’s Office.. Failures to comply could result in misdemeanor and fine.
Proposed Maryland Legislation Would Preclude Limitations On Condominium Owner’s Construction Defect Claims Against Developers
The Maryland General Assembly is again considering legislation that would prevent 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. Senate Bill 207 and House Bill 258 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. The proposed new law would also preclude limits on the rights of condominium councils or individual unit owners to bring claims relating to an alleged failure of the developer to comply with building codes, county approved plans and specifications, product manufacturer’s installation instructions, and other construction industry standards. Proposed new Section 11-134.1 of the Maryland Condominium Act would prohibit provisions designed to prevent the filing of a claim within the applicable period of limitations or prevent claims from accruing pursuant to the “discovery rule.” The new law would also preclude provisions requiring a vote of the unit owners approving the initiation of a claim, unless such a requirement is adopted after the unit owners assume control of the community from the developer. read more…
Proposed Maryland Legislation Would Require HOA Disclosure Statements and Limit Fees Charged by HOAs and Condos
Legislation pending the the Maryland General Assembly would require Homeowners Associations to provide information needed by a lot owner in connection with a pending re-sale of their home. House Bill 412 and Senate Bill 229 would both 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 certain information be included in the contract of sale. The proposed legislation provides that, within twenty days of receiving a written request from the selling owner, the 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 Fifty Dollars. Both bills also would impose this same Fifty Dollar 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.
Proposed Maryland Legislation To Regulate Property Managers Includes Bond or Insurance Requirements
Legislation pending in the 2014 session of the Maryland General Assembly to regulate property managers of residential communities includes provisions that would require property managers to file a fidelity bond or proof of insurance with the Secretary of the Department of Licensing and Regulation. House Bill 10, in addition to requiring that property managers be licensed, would require that any property manager entering into a contract to provide management services to a condominium, cooperative or homeowners association file proof of a fidelity bond, theft insurance, or other comparable written insurance as may be required by the proposed State Board of Common Ownership Community Managers. The bond or insurance would be required to provide coverage in the lesser amount of $2 million or the highest aggregate amount of the operating and reserve balances of the community under the contract during the prior three months.
Condominium Insurance Basics
Maybe it is the weather, but we have been receiving a number of questions about condominium insurance coverage as between the common elements and units. Here is a summary: A condominium master policy must, at a minimum, cover property damage to all of the condominium structure, including both the common elements and units as originally constructed and finished by the developer, with the unit owners providing individual insurance for their improvements and personal contents. Section 11-114 of the Maryland Condominium Act states that the council of unit owners is required to maintain insurance “[f]or property and casualty losses to the common elements and the units, exclusive of improvements and betterments installed in the units by the unit owners other than the developer.” read more…
Maryland General Assembly To Again Consider Licensing and Regulation of Property Managers
As occurred previously in the most recent legislative sessions, a bill has been filled in the 2014 Maryland General Assembly that propose to establish provisions for the licensing and regulation of property managers of residential communities. House Bill 10 would both amend the Business Occupations and Professions Article of the Maryland Annotated Code to create a State Board of Common Ownership Community Managers in the Department of Licensing and Regulation to issue licenses to the managers of “common ownership communities,” which include condominiums, cooperatives and homeowner associations. Such a license would be required before any individual would be permitted to provide property management services to communities in the State. Applicants would be required to complete a training program and pass an examination, along with paying a licensing fee. The licenses would be issued for two years, and would be renewable upon submission of a renewal applciation and fee.
Reprint of My JFK Remembrance
I have been asked to reprint my opinion/commentary that appeared in The Baltimore Sun on November 22, 2013:
The walk home from school is what I remember most. It should have been a lighthearted schoolboy stroll for a sixth grader on a cloudy and mild Friday in late November, filled with visions of the weekend ahead and the long Thanksgiving holiday just a few days away. Instead, it was a mournful plodding along a route I had walked daily, yet, on that afternoon, my surroundings seemed somehow alien. The remnants of crisp fallen leaves crackling under foot served as constant reminders that, with each step, my childhood was palpably draining out of me and being left behind to evaporate into memory. I felt it tug at me as I trudged forward, but I dared not turn around to take one final look, for fear of the heartbreak the sight would surely induce. Better to keep my eyes ahead and march on stoically into the inevitable that would be all too vividly displayed on my home’s television screen.
It is not my intent to make more of John F. Kennedy than he was, or imbue him with some idealized cloak of perfection. But if you were of a certain impressionable age, and disposed to dream of the grand things you and your compatriots might accomplish, President Kennedy was a charming catalyst for youthful imagination. The sickly Boston boy had who spent so many weeks in bed devouring history books grew up to demonstrate that knowledge was cool, words could be used powerfully, and intellect offered the path to changing the world. The child of privilege, who became a genuine war hero in the same theater where my own father had served, showed us that service to others and to county is honorable and gives meaning to who we are as a people. read more…
Maryland 2014 Super Lawyers
I am pleased to report that I have been named among Maryland’s Super Lawyers for the eighth consecutive year for construction and real estate law. I am also happy to note that four associates in our litigation and construction practice groups, with whom I work regularly on condominium and homeowner association matters, have been named to the list of rising stars: Jack Boyd, Ian Friedman, Kelly Preteroti and Matt Vocci. Congratulations to them on their well-deserved recognition.
More On The New Law Limiting The Basis For Lien Foreclosure
I have received some questions regarding the new law, which took effect on October 1, 2013, that limits the basis for foreclosure of a lien on a condominium unit by the council of unit owners and foreclosure of a lien on a property by a homeowners association. The new law modifies Section 14-204 of the Real Property Article of the Maryland Annotated Code to prohibit condominiums and homeowners associations from foreclosing on liens for anything other than delinquent periodic or special assessments; meaning that unpaid fines may not be the basis for a lien foreclosure. Additionally, the new law requires that related costs and fees be limited to “reasonable costs and attorney’s fees directly related to the filing of the lien and not exceeding the amount of the delinquent assessments.” Unpaid fines and other charges may still form the basis of a lien, but the lien may not be foreclosed on the basis. read more…
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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.