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State Senate Passes Bill Requiring Notice To Owners Of Common Element Sales

By a vote of 47-0, the Maryland State Senate passed Senate Bill 809, which would require a condominium council of unit owners to provide at least 30-days notice to all unit owners of any sale, including a tax sale, of a common element.  The bill would add new Subsection 11-108(d) to the Maryland Condominium Act.  Additionally it would add new Subsection 14-804(e) to the Tax Article to provide that a council of unit owners must give notice to the unit owners when a tax lien has been imposed on a common element.  The final version that passed added language imposing the same notice requirement a developer where the developer maintains control prior to formation of the council of unit owners.

The proposed law would create a similar notice requirement for homeowner associations with respect to a sale of any common area in the community by adding new Section 11B-106.2 to the Maryland Homeowner Association Act. Proposed new Subsection 14-804(e) of the Tax Article would also require notice by a homeowner association when a tax lien is imposed on any common area.  The final version included an amendment imposing the notice requirement on a declarant where the governing body of the association has not yet formed.