EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0837*
HOUSE BILL 837
N1 3lr2873
CF 3lr2875
By: Delegate Holmes
Introduced and read first time: February 9, 2023
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Condominiums and Homeowners Associations – Residential Property 2
Foreclosure Sales – Purchaser Requirements 3
FOR the purpose of requiring a purchaser in a foreclosure sale of residential property in a 4
condominium or homeowners association to immediately record an instrument of 5
writing transferring the residential property; requiring the purchaser to 6
immediately begin payment of certain regular assessments until a certain condition 7
is met; and generally relating to residential property in a condominium or 8
homeowners association. 9
BY repealing and reenacting, with amendments, 10
Article – Real Property 11
Section 7–105.16 12
Annotated Code of Maryland 13
(2015 Replacement Volume and 2022 Supplement) 14
BY adding to 15
Article – Real Property 16
Section 7–105.19 17
Annotated Code of Maryland 18
(2015 Replacement Volume and 2022 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Real Property 22
7–105.16. 23
(a) (1) In this section the following words have the meanings indicated. 24 2 HOUSE BILL 837
(2) “Instrument of writing” has the meaning stated in § 12–101 of the Tax 1
– Property Article. 2
(3) (i) “Residential property” means real property improved by a 3
dwelling unit that is designed principally and is intended for human habitation. 4
(ii) “Residential property” includes: 5
1. A residential condominium unit; and 6
2. A unit in a cooperative project, as defined in § 5–6B–01 of 7
the Corporations and Associations Article. 8
(4) “Tax” has the meaning stated in § 14–801 of the Tax – Property Article. 9
(b) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this section, 10
if residential property is purchased at a sale in an action to foreclose a mortgage or deed of 11
trust on the residential property, the purchaser shall provide a copy of the court order 12
ratifying the foreclosure sale to the supervisor of assessments for the county in which the 13
residential property is located by the later of: 14
(1) 60 days after the entry of the court order ratifying the foreclosure sale; 15
or 16
(2) If a motion is filed under Maryland Rule 2–535 before the expiration of 17
the time period set forth in item (1) of this subsection, 30 days after the entry of a court 18
order that resolves the motion without nullifying the ratification order. 19
(c) Subsection (b) of this section does not apply if: 20
(1) An instrument of writing transferring the residential property has been 21
recorded in the land records of the county in which the residential property is located before 22
the expiration of the time period set forth in subsection (b) of this section; or 23
(2) The foreclosure sale is subject to: 24
(i) A pending appeal of the ratification order; 25
(ii) A bankruptcy stay; or 26
(iii) An unexpired right of redemption in favor of the United States 27
or any agency or department of the United States. 28
(D) IF RESIDENTIAL PROPERTY IN A CONDOMINIUM OR HOMEO WNERS 29
ASSOCIATION IS PURCHASED AT A FORECLOSURE SALE , THE PURCHASER SHALL 30
IMMEDIATELY RECORD A N INSTRUMENT OF WRIT ING TRANSFERRING THE 31 HOUSE BILL 837 3
RESIDENTIAL PROPERTY IN THE LAND RECORDS OF THE COUNTY IN WHI CH THE 1
RESIDENTIAL PROPERTY IS LOCATED. 2
[(d)] (E) The supervisor of assessments shall provide a receipt to the person 3
providing a copy of the ratification order. 4
[(e)] (F) If a copy of the ratification order is not provided to the supervisor of 5
assessments as required under subsection (b) of this section, any reduction in property tax 6
received by the residential property because of its status as an owner–occupied principal 7
residence from the date of the entry of the ratification order until the earlier of the receipt 8
by the supervisor of assessments of a copy of the ratification order or the recordation in the 9
land records of an instrument of writing transferring the property to a third party shall 10
remain due and collectable as a property tax under Title 14 of the Tax – Property Article. 11
7–105.19. 12
(A) IN THIS SECTION , “GOVERNING BODY ” MEANS A PERSON WITH THE 13
AUTHORITY TO ENFORCE A DECLARATION , BYLAWS, RULES, OR REGULATIONS OF A 14
CONDOMINI UM OR HOMEOWNERS ASSOCI ATION. 15
(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF 16
RESIDENTIAL PROPERTY SUBJECT TO A CONDOMI NIUM REGIME OR HOMEO WNERS 17
ASSOCIATION IS PURCHASED AT A SALE IN AN ACTION TO FORE CLOSE A MORTGAGE 18
OR DEED OF TRUST ON THE RESIDENTIAL PROP ERTY, THE PURCHASER SHALL 19
IMMEDIATELY BEGIN PAYMENT TO THE GOVERNING BODY O F A CONDOMINIUM OR 20
HOMEOWNERS ASSOCIATI ON IN WHICH THE RESIDEN TIAL PROPERTY IS LOC ATED OF 21
ANY REGULAR ASSESSMENTS FOR COMMON EXPENSES THAT ARE LEVIED IN 22
ACCORDANCE WITH THE REQUIREMENTS OF THE GOVERNING DOCUMENTS OF THE 23
CONDOMINIUM OR HOMEOWNERS ASSOCI ATION. 24
(2) THE PURCHASER SHALL P AY REGULAR ASSESSMENTS LEVIED IN 25
ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE CONDOMINIUM O R 26
HOMEOWNERS ASSOCIATI ON UNTIL THE TITLE TO T HE RESIDENTIAL PROPE RTY IS 27
RECORDED BY A NEW OW NER. 28
(C) IF A PURCHASER FAILS TO PAY REGULAR ASSES SMENTS AS REQUIRED 29
UNDER SUBSECTION (B) OF THIS SECTION , THE GOVERNING BODY OF A 30
CONDOMINIUM OR HOMEO WNERS ASSOCIATION MAY CHARGE THE PURCHASER A 31
FINE OF UP TO $500 PER MONTH THAT THE P URCHASER FAILS TO PA Y THE 32
ASSESSMENT . 33
SECTION 2. AND BE IT FURTHER ENACTED, That this Act sha ll take effect 34
October 1, 2023. 35