June 6, 2011
Section 11-131 of the Maryland Condominium Act provides significant warranty protections for the purchasers for new condominium units. Section 11-131 (a) codified the ruling in Starfish, and established that new home warranties under Section 10-203 “apply to all sales by developers” of condominiums, and that “a newly constructed private dwelling unit means a newly constructed (...) [Read More]
April 27, 2011
The recent session of the Maryland General Assembly passed House Bill 887, which limits the right of recission belonging to purchasers of a new condominium units. The measure, which takes effect October 1, 2011, amends Section 11-126(e) of the Maryland Condominium Act. That statute gives new condominium purchasers the right to rescind their contracts after receiving certain condominium documents, or (...) [Read More]
April 25, 2011
The Maryland General Assembly passed House Bill 679, which permits condominiums to adopt a requirement that unit owners maintain insurance on their units. The bill was signed into law by the Governor on April 12, 2011, and takes effect October 1, 2011. The law adds new Section 11-114.2 to the Maryland Condominium Act to provide that condominium bylaws may include (...) [Read More]
April 11, 2011
Condominiums have previously been disqualified from FHA financing as a result of leasing restrictions contained in the community’s governing documents. FHA regulations have provided that a mortgatge is not eligible for FHA insurance if the mortgaged property is subject to legal restrictions on conveyance, which includes a restrtiction on leasing found in many condominium declarations or by-laws. 24 CFR (...) [Read More]
February 15, 2011
Section 11-131 of the Maryland Condominium Act provides significant warranty protections to the purchasers for new condominium units. Section 11-131 (a) codified the ruling in Starfish, and established that new home warranties under Section 10-203 “apply to all sales by developers” of condominiums, and that “a newly constructed private dwelling unit means a newly constructed (...) [Read More]
August 10, 2010
Pursuant to Md. Real Prop. Code Title 10, certain implied warranties are applicable to the sale of every newly constructed home in Maryland. These warranties are applicable to all “improvements,” which are defined as “every newly constructed private dwelling unit, and fixture and structure which is made part of a newly constructed private dwelling unit (...) [Read More]
June 29, 2010
Like the FHA, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have specific requirements when providing financing for condominium sales or refinancing. Fannie Mae involves the FHA, because it was established for the purpose of purchasing FHA loans from loan originators to provide liquidity for government-insured loans. (...) [Read More]
May 25, 2010
Like all housing, the sales of condominiums have been significantly impacted by the state of the housing market. Also effecting sales are new rules and regulations applicable to government backed loans, as well as those adopted by conventional lenders. In particular, new requirements for FHA financing directly concern condominium sales. As of February 1, (...) [Read More]
October 30, 2009
A would be condominium buyer has inquired about having heard that it is possible to buy a condominium unit without having the benefit of the three-year common element warranty, because it has already expired at the time of purchase. What that purchaser heard is absolutely correct. Maryland’s three-year statutory warranty on certain components of (...) [Read More]
August 19, 2009
If you have bought a new home in Maryland during the last several years, including a new condominium, your purchase likely included what are commonly referred to as “ten-year warranty” policies.” But a careful reading of the typical provisions of many of these policies reveals that the suggested coverage benefits are nearly non-existent. In (...) [Read More]
Marylandcondolaw.com is written by Raymond D. Burke, a principal in Ober|Kaler’s Construction Group. One of the region's top construction and real estate development lawyers, Ray has more than 25 years of experience in matters relating to condominium and other multi-use development matters.