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, with 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.

The information required to be furnished in connection with the resale of a condominium unit under Section 11-135(b) of the Maryland Condominium Act is as follows:

  1. A statement disclosing the effect on the proposed conveyance of any right of first refusal or other restraint on the free alienability of the unit other than any restraint created by the unit owner;
  2. A statement setting forth the amount of the monthly common expense assessment and any unpaid common expense or special assessment currently due and payable from the selling unit owner;
  3. A statement of any other fees payable by the unit owners to the council of unit owners;
  4. A statement of any capital expenditures approved by the council of unit owners planned at the time of the conveyance which are not reflected in the current operating budget disclosed under item (vi) of this item;
  5. The most recent regularly prepared balance sheet and income expense statement, if any, of the condominium;
  6. The current operating budget of the condominium including details concerning the reserve fund for repair and replacement and its intended use, or a statement that there is no reserve fund;
  7. A statement of any judgments against the condominium and the existence of any pending suits to which the council of unit owners is a party;
  8. A statement generally describing any insurance policies provided for the benefit of unit owners, a notice that copies of the policies are available for inspection, stating the location at which the copies are available, and a notice that the terms of the policy prevail over the description;
  9. A statement as to whether the council of unit owners has knowledge that any alteration or improvement to the unit or to the limited common elements assigned to the unit violates any provision of the declaration, bylaws, or rules or regulations;
  10. A statement as to whether the council of unit owners has knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium;
  11. A statement of the remaining term of any leasehold estate affecting the condominium and the provisions governing any extension or renewal thereof; and
  12. A description of any recreational or other facilities which are to be used by the unit owners or maintained by them or the council of unit owners, and a statement as to whether or not they are to be a part of the common elements;

(5) A statement by the unit owner as to whether the unit owner has knowledge:

  1. That any alteration to the unit or to the limited common elements assigned to the unit violates any provision of the declaration, bylaws, or rules and regulations;
  2. Of any violation of the health or building codes with respect to the unit or the limited common elements assigned to the unit; and
  3. That the unit is subject to an extended lease under § 11-137 of this title or under local law, and if so, a copy of the lease must be provided; and

(6) A written notice of the unit owner’s responsibility for the council of unit owners’ property insurance deductible and the amount of the deductible.

The information required to be furnished in connection with the resale of a property that is subject to a homeowners association under Section 11B-106(b) of the Maryland Condominium Act is as follows:

(1) A statement as to whether the lot is located within a development;

(2) (i) The current monthly fees or assessments imposed by the homeowners association upon the lot;

(ii) The total amount of fees, assessments, and other charges imposed by the homeowners association upon the lot during the prior fiscal year of the homeowners association; and

(iii) A statement of whether any of the fees, assessments, or other charges against the lot are delinquent;

(3) The name, address, and telephone number of the management agent of the homeowners association, or other officer or agent authorized by the homeowners association to provide to members of the public, information regarding the homeowners association and the development, or a statement that no agent or officer is presently so authorized by the homeowners association;

(4) A statement as to whether the owner has actual knowledge of:

  1. The existence of any unsatisfied judgments or pending lawsuits against the homeowners association; and
  2. Any pending claims, covenant violations actions, or notices of default against the lot; and

(5) A copy of:

  1. The articles of incorporation, the declaration, and all recorded covenants and restrictions of the primary development, and of other related developments to the extent reasonably available, to which the purchaser shall become obligated on becoming an owner of the lot, including a statement that these obligations are enforceable against an owner’s tenants, if applicable; and
  2. The bylaws and rules of the primary development, and of other related developments to the extent reasonably available, to which the purchaser shall become obligated on becoming an owner of the lot, including a statement that these obligations are enforceable against an owner and the owner’s tenants, if applicable.