EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0052*
HOUSE BILL 52
N1 3lr0993
(PRE–FILED)
By: Delegate Foley
Requested: November 20, 2022
Introduced and read first time: January 11, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Sales Contracts – Asbestos Disclosure 2
FOR the purpose of establishing the unenforceability of contracts for the sale of 3
condominium units that do not contain certain notice relating to the presence of 4
asbestos; and generally relating to contracts for the sale of condominium units. 5
BY repealing and reenacting, with amendments, 6
Article – Real Property 7
Section 11–126(a) and 11–135(a)(4)(x) and (xi) and (5) and (g)(1) 8
Annotated Code of Maryland 9
(2015 Replacement Volume and 2022 Supplement) 10
BY adding to 11
Article – Real Property 12
Section 11–135(a)(4)(xii) 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2022 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MA RYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Real Property 18
11–126. 19
(a) A contract for the initial sale of a unit to a member of the public is not 20
enforceable by the vendor unless: 21
(1) The purchaser is given on or before the time a contract is entered into 22
between the vendor and the purchaser, a current public offering statement as amended and 23 2 HOUSE BILL 52
registered with the Secretary of State containing all of the information set forth in 1
subsection (b) of this section; and 2
(2) The contract of sale contains, in conspicuous type, a notice of: 3
(i) The purchaser’s right to receive a public offering statement and 4
his rescission rights under this section; [and] 5
(ii) 1. The warranties provided by § 11–131 of this title; and 6
2. Whether the council of unit owners has entered into any 7
agreement that settles or releases the council of unit owners’ claims related to common 8
element warranties under § 11–131 of this title; AND 9
(III) A STATEMENT AS TO WHETHER THE VENDOR HAS ACTUAL 10
KNOWLEDGE OF THE PRESENCE OF ASBESTOS ON THE SITE , INCLUDING A 11
DESCRIPTION OF THE L OCATION OF THE ASBESTOS , WHETHER ABATEMENT HAS 12
BEEN PERFORMED , AND THE DATE OF ANY ABATEMENT . 13
11–135. 14
(a) Except as provided in subsection (b) of this section, a contract for the resale of 15
a unit by a unit owner other than a developer is not enforceable unless the contract of sale 16
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 17
section, and the unit owner furnishes to the purchaser not later than 15 days prior to 18
closing: 19
(4) A certificate containing: 20
(x) A description of any recreational or other facilities which are to 21
be used by the unit owners or maintained by them or the council of unit owners, and a 22
statement as to whether or not they are to be a part of the common elements; [and] 23
(xi) 1. A statement as to whether the council of unit owners has 24
entered into any agreement that settles or releases the council of unit owners’ claims 25
related to common element warranties under § 11–131 of this title; and 26
2. A statement as to whether the board of directors has 27
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 28
board’s intention to enter into an agreement for the purpose of settling a disputed common 29
element warranty claim under § 11–131 of this title; AND 30
(XII) A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 31
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE, 32
INCLUDING A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, WHETHER 33
ABATEMENT HAS BEEN PERFORMED , AND THE DATE OF ANY ABATEMENT ; 34 HOUSE BILL 52 3
(5) A statement by the unit owner as to whether the unit owner has 1
knowledge: 2
(i) That any alteration to the unit or to the limited common 3
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 4
regulations; 5
(ii) Of any violation of the health or building codes with respect to 6
the unit or the limited common elements assigned to the unit; [and] 7
(iii) That the unit is subject to an extended lease under § 11–137 of 8
this title or under local law, and if so, a copy of the lease must be provided; and 9
(IV) OF THE PRESENCE OF AS BESTOS ON THE SITE , INCLUDING 10
A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, WHETHER ABATEMENT HAS 11
BEEN PERFORMED, AND THE DATE OF ANY ABATEMENT ; AND 12
(g) (1) A notice given as required by subsection (a) of this section shall be 13
sufficient for the purposes of this section if it is in substantially the following form: 14
“NOTICE 15
The seller is required by law to furnish to you not later than 15 days prior to closing 16
certain information concerning the condominium which is described in § 11–135 of the 17
Maryland Condominium Act. This information must include at least the following: 18
(i) A copy of the declaration (other than the plats); 19
(ii) A copy of the bylaws; 20
(iii) A copy of the rules and regulations of the condominium; 21
(iv) A certificate containing: 22
1. A statement disclosing the effect on the proposed 23
conveyance of any right of first refusal or other restraint on the free alienability of the unit, 24
other than any restraint created by the unit owner; 25
2. A statement of the amount of the monthly common 26
expense assessment and any unpaid common expense or special assessment currently due 27
and payable from the selling unit owner; 28
3. A statement of any other fees payable by the unit owners 29
to the council of unit owners; 30
4. A statement of any capital expenditures approved by the 31 4 HOUSE BILL 52
council of unit owners or its authorized designee planned at the time of the conveyance 1
which are not reflected in the current operating budget included in the certificate; 2
5. The most recently prepared balance sheet and income and 3
expense statement, if any, of the condominium; 4
6. The current operating budget of the condominium, 5
including details concerning the amount of the reserve fund for repair and replacement and 6
its intended use, or a statement that there is no reserve fund; 7
7. A statement of any judgments against the condominium 8
and the existence of any pending suits to which the council of unit owners is a party; 9
8. A statement generally describing any insurance policies 10
provided for the benefit of the unit owners, a notice that the policies are available for 11
inspection stating the location at which they are available, and a notice that the terms of 12
the policy prevail over the general description; 13
9. A statement as to whether the council of unit owners has 14
knowledge that any alteration or improvement to the unit or to the limited common 15
elements assigned to the unit violates any provision of the declaration, bylaws, or rules or 16
regulations; 17
10. A statement as to whether the council of unit owners has 18
knowledge of any violation of the health or building codes with respect to the unit, the 19
limited common elements assigned to the unit, or any other portion of the condominium; 20
11. A statement of the remaining term of any leasehold estate 21
affecting the condominium and the provisions governing any extension or renewal of it; 22
12. A description of any recreational or other facilities which 23
are to be used by the unit owners or maintained by them or the council of unit owners, and 24
a statement as to whether or not they are to be a part of the common elements; [and] 25
13. A. A statement as to whether the council of unit 26
owners has entered into any agreement that settles or releases the council of unit owners’ 27
claims related to common element warranties under § 11–131 of this title; and 28
B. A statement as to whether the board of directors has 29
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 30
board’s intention to enter into an agreement for the purpose of settling a disputed common 31
element warranty claim under § 11–131 of this title; and 32
14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 33
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE, 34
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 35
ABATEMENT WAS PERFOR MED, AND THE DATE OF ANY ABATEMENT ; AND 36 HOUSE BILL 52 5
(v) A statement by the unit owner as to whether the unit owner has 1
knowledge: 2
1. That any alteration to the unit or to the limited common 3
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 4
regulations. 5
2. Of any violation of the health or building codes with 6
respect to the unit or the limited common elements assigned to the unit. 7
3. That the unit is subject to an extended lease under § 8
11–137 of this title or under local law, and if so, a copy of the lease must be provided. 9
4. OF THE PRESENCE OF AS BESTOS ON THE SITE , 10
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 11
ABATEMENT HAS BEEN PERFORMED , AND THE DATE OF ANY ABATEMENT . 12
You will have the right to cancel this contract without penalty, at any time within 7 13
days following delivery to you of all of this information. However, once the sale is closed, 14
your right to cancel the contract is terminated.”. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2023. 17