Category Archives: Residential Condominiums

New Court of Appeals Decision Holds That a False and Misleading Resale Disclosure Certificate Violates the Consumer Protection Protection Act — Yours Truly Quoted By The Court

In its recent decsion in MRA Property Management, Inc., et al. v. Armstrong, No. 93, Sept. Term 2007, filed on October 25, 2011, a majority of the Maryland Court of Appeals held that the Maryland Consumer Protection Act applies to purchases of condominium units with respect to the information required to be provided by a council [...]

Award of Attorney’s Fees Under the Consumer Protection Act May Not Be Subject To An Arbitration Agreement

I obtained a noteworthy ruling this morning in the Circuit Court for Montgomery County while representing a condominium unit owner in a construction defect suit.  The sales agreement provided for arbitration of claims, and contained a provision that precludes the arbitration panel from awarding attorney’s fees.  Under Md. Cts. & Jud. Proc Code Ann.  Sec. 3-221, an arbitration [...]

Maryland Appellate Court Rules That Individual Unit Owners Have a Right of Action Against the Council of Unit Owners For Failing To File a Timely Suit Against the Developer For Defects In The Common Elements

Anyone who follows this blog knows that I have often warned condominium councils about the consequences of failing to take timely legal action to protect the unit owners when there is evidence of construction defects in the common elements.  The most significant consequence, of course, is that, if a contribution to repair costs is not [...]

Title 11 Condominium Warranties May Not Be Excluded Or Modified

Unlike the Title 10 warranties that are applicable to the sales of all new homes in Maryland, including condominiums, the Title 11 condominium warranties “may not be excluded or modified” by any action or written document.   In other words, the purchaser cannot be required to agree to eliminate these statutory warranties, or change the terms of the [...]

Warranties Under The Maryland Condominium Act

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 [...]

Legislature Limits Condominium Purchaser’s Rescission Rights For Amended Condominium Documents

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 [...]

Legislature Passes Measure Authorizing Condominiums to Require Unit Owner Insurance

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 [...]

Maryland General Assembly Passes Limited Relief For Unpaid Assessments In Foreclosure Actions

Pursuant to legislation passed in the closing hours of this year’s session of the Maryland General Assembly, four (4) months of unpaid assessments due to condominiums and homeowner associations, up to a maximum of $1,200, will now receive priority over mortgages, but only those recorded after October 1, 2011.  As reported in my post of March 18, legislation [...]

FHA Issues Waiver On Leasing Restrictions

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 [...]

Maryland General Assembly Again Considers Limited Relief For Unpaid Assessments In Foreclosure Actions

Associations continue to suffer from an epidemic of unpaid assessments.  Such delinquent owners are often also behind in their mortgage payments, which can lead to the lender foreclosing.  Once the lender forecloses and takes title, it becomes responsible for assessments going forward, but not for past due assessments.  As in last year’s session, the legislature [...]