by Raymond Daniel Burke | Apr 15, 2015
Versions of a bill that was originally intended to limit fees charged by condominium associations for providing resale certificates has passed both houses of the Maryland General Assembly with amendments that limit the association’s liability for inaccurate information contained in those certificates. The Maryland Senate has joined the House of Delegates in passing an amended version of House Bill 1007, which limits the liability of a council of unit owners or a homeowners association for errors and omissions in the content of the resale certificate to the amount of the fees paid for the certificate. As originally proposed, HB 1007 would have limited the fee charged by condominium councils of unit owners for providing required information in connection with the resale of a unit. It also provided that required resale disclosure information to be furnished by a homeowners association as part of the sale of a home in the community. These requirements were retained in the amended bill passed by both houses, with an amendment that limits the fees charged to “the lesser of $175 or the actual cost.” But the amended version goes much further. In addition to providing for two additional fees associated with the resale process, the approved version of the bill provides that “[a]ny liability of the council of unit owners for an error or omission in the certificate shall be limited to the amount of the fees paid for the certificate.” This same limit on liability applies to the certificates now required to be furnished by homeowner associations. (more…)
by Raymond Daniel Burke | Apr 3, 2015
By a vote of 140-0, the Maryland House of Delegates passed an amended version of HB1007, which, as discussed in my prior post, was intended to limit the fee charged by condominium councils of unit owners for providing required information in connection with the resale of a unit. Most significantly, the amended version limits the liability of a council of unit owners for errors and omissions in the content of the resale certificate to the amount of the fees paid for the certificate. It makes not distinction as to whether such errors or omissions are intentional. This is contrary to, and is seemingly in response to, a ruling of the Maryland Court of Appeals. In a unanimous opinion filed on April 30, 2012, the Court of Appeals, in the case of MRA Property Management, Inc., et al. v. Armstrong, established that provisions the Maryland Consumer Protection Act apply to the information contained in a condominium resale certificate, and a council of unit owners and property manager can be liable for unfair and deceptive trade practices if the information has a tendency to mislead the purchaser, even though they are not party to the sales contract, and even if they have otherwise complied with the condominium resale disclosure requirements contained in Section 11-135 of the Maryland Condominium Act. The bill passed by the House would abrogate this ruling, and limit the council’s liability to “the amount paid for the certificate.” This would leave defrauded purchasers with recourse only against a management company. (more…)
by Raymond Daniel Burke | Mar 12, 2015
Legislation has been introduced in the Maryland House of Delegates that would limit the fee charged by condominium councils of unit owners for providing required information in connection with the resale of a unit. House Bill 1007 would also require requested information to be provided by a Homeowners Association as part of the sale of a home in the community.
Under Section 11-135(c) of the Maryland Condominium Act, within 20 days after receiving a written request from a unit owner, the council of unit owners is required to provide a certificate containing information concerning the community that is required to be disclosed to a potential purchaser under that section of the statute. The law presently provides that the council may charge the unit owner for its costs in furnishing the material. The proposed legislation would limit this charge to the lesser of $250 or the actual costs.
Under Section 11B-106(b) of the Maryland Homeowners Association Act, a homeowner who is selling their property is required to furnish the potential purchaser with certain information about the community. The proposed legislation would add a new subsection (c) to the statute that would require the homeowners association to provide that information upon request of the selling homeowner. It would impose the same limit of the fee charged for providing this material; i.e., the lesser of 250 or the actual cost. (more…)
by Raymond Daniel Burke | Oct 27, 2014
Thanks to all of the members of the Chesapeake Region Chapter of the Community Associations Institute who helped make the 2014 Annual Symposium & Expo a well- attended success. Ober Kaler was proud to serve as an event sponsor, and to also sponsor a bus so that Eastern Shore members could attend the October 21 event at Martin’s West in Baltimore County. Special thanks to all those whos stopped by the Ober Kaler table and discussed this blog.
by Raymond Daniel Burke | May 13, 2014
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. (more…)
by Raymond Daniel Burke | Apr 22, 2014
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. (more…)
