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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.

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.

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. (more…)

Ocean City Condo Show This Weekend

The Ocean City Condo Show is this weekend at the R.E. Powell Ocean City Convention Center, Saturday, October 26 and Sunday, October 27.  Please look for the ad for this  blog in the show program and in this  week’s edition of The Bayside Gazette  and Ocean City Today.

Contracts For The Initial Sale of Condominium Units In Maryland Are Invalid If the Public Offering Statement Has Not Been Registered

Under Section 11-127 of the Maryland Condominium Act, devel0pers  of condominiums are required to file a Public Offering Statement with the Maryland Secretary of State.  Until the Public Offering Statement is registered, and until 10 days after all amendments have been filed, a contract for the sale of any unit may not be entered into, and any such contracts are void.  Additionally, under Section 11-126 of the Maryland Condominium Act, the initial purchaser of a condominium unit must receive a copy of the Public Offering Statement at or before the time the contract of sale is entered into, or the contract is unenforceable by the seller.  Such contracts of sale are also required to contain, in conspicuous type, a notice of the purchaser’s right to receive a Public Offering Statement.

Maryland Court Of Appeals Affirms Exclusion of “Differential Diagnosis” In Mold Exposure Claims

The Maryland Court of Appeals has affirmed a decsion of the Court of Special Appeals ruling that certain expert testimony is not admissible to support medical clams arising from exposure to mold and other environmental byproducts of damp buildings.  Such claims are often supported by a medical analysis known as “differential diagnosis” and sometimes referred to as “repetitive exposure protocol,” which as been used by physicians to attribute various medical symptoms to inhalation of mold in water-damaged buildings.  Rather than demonstrating a specific exposure to a specific mold resulting in a specific reaction,  differential diagnosis uses a process that “rules out” or “rules in” possible causes of symptoms a patient is experiencing to determine that their symptoms are related to exposure to mold.  Differential diagnosis has been frequently used to show an association between exposure to mold in wet buildings and certain human health effects.  In its opinion in the case of Montgomery Mutual Insurance Co. v. Chesson, the Maryland Court of Special Appeals held that this method is not sufficiently accepted in the scientific community so as to be used as a basis for medical testimony in mold cases.  The Court of Special Appeals reversed a trial court ruling that found such medical testimony to be reliable and admissible.  Maryland’s highest court, the Court of Appeals, has now affirmed the Court of Special Appeals decision.  Chesson v. Montgomery Mutual Insurance Co., Case No. 97, Sept. Term 2012. (more…)