Maryland 2023 Regular Session

Maryland House Bill HB837 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0837
6	6
7	7	HOUSE BILL 837
8	8	N1 3lr2873
9	9	CF 3lr2875
10	10	By: Delegate Holmes
11	11	Introduced and read first time: February 9, 2023
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Condominiums and Homeowners Associations – Residential Property 2
19	19	Foreclosure Sales – Purchaser Requirements 3
20	20
21	21	FOR the purpose of requiring a purchaser in a foreclosure sale of residential property in a 4
22	22	condominium or homeowners association to immediately record an instrument of 5
23	23	writing transferring the residential property; requiring the purchaser to 6
24	24	immediately begin payment of certain regular assessments until a certain condition 7
25	25	is met; and generally relating to residential property in a condominium or 8
26	26	homeowners association. 9
27	27
28	28	BY repealing and reenacting, with amendments, 10
29	29	Article – Real Property 11
30	30	Section 7–105.16 12
31	31	Annotated Code of Maryland 13
32	32	(2015 Replacement Volume and 2022 Supplement) 14
33	33
34	34	BY adding to 15
35	35	Article – Real Property 16
36	36	Section 7–105.19 17
37	37	Annotated Code of Maryland 18
38	38	(2015 Replacement Volume and 2022 Supplement) 19
39	39
40	40	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
41	41	That the Laws of Maryland read as follows: 21
42	42
43	43	Article – Real Property 22
44	44
45	45	7–105.16. 23
46	46
47	47	(a) (1) In this section the following words have the meanings indicated. 24 2 HOUSE BILL 837
48	48
49	49
50	50
51	51	(2) “Instrument of writing” has the meaning stated in § 12–101 of the Tax 1
52	52	– Property Article. 2
53	53
54	54	(3) (i) “Residential property” means real property improved by a 3
55	55	dwelling unit that is designed principally and is intended for human habitation. 4
56	56
57	57	(ii) “Residential property” includes: 5
58	58
59	59	1. A residential condominium unit; and 6
60	60
61	61	2. A unit in a cooperative project, as defined in § 5–6B–01 of 7
62	62	the Corporations and Associations Article. 8
63	63
64	64	(4) “Tax” has the meaning stated in § 14–801 of the Tax – Property Article. 9
65	65
66	66	(b) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this section, 10
67	67	if residential property is purchased at a sale in an action to foreclose a mortgage or deed of 11
68	68	trust on the residential property, the purchaser shall provide a copy of the court order 12
69	69	ratifying the foreclosure sale to the supervisor of assessments for the county in which the 13
70	70	residential property is located by the later of: 14
71	71
72	72	(1) 60 days after the entry of the court order ratifying the foreclosure sale; 15
73	73	or 16
74	74
75	75	(2) If a motion is filed under Maryland Rule 2–535 before the expiration of 17
76	76	the time period set forth in item (1) of this subsection, 30 days after the entry of a court 18
77	77	order that resolves the motion without nullifying the ratification order. 19
78	78
79	79	(c) Subsection (b) of this section does not apply if: 20
80	80
81	81	(1) An instrument of writing transferring the residential property has been 21
82	82	recorded in the land records of the county in which the residential property is located before 22
83	83	the expiration of the time period set forth in subsection (b) of this section; or 23
84	84
85	85	(2) The foreclosure sale is subject to: 24
86	86
87	87	(i) A pending appeal of the ratification order; 25
88	88
89	89	(ii) A bankruptcy stay; or 26
90	90
91	91	(iii) An unexpired right of redemption in favor of the United States 27
92	92	or any agency or department of the United States. 28
93	93
94	94	(D) IF RESIDENTIAL PROPERTY IN A CONDOMINIUM OR HOMEO WNERS 29
95	95	ASSOCIATION IS PURCHASED AT A FORECLOSURE SALE , THE PURCHASER SHALL 30
96	96	IMMEDIATELY RECORD A N INSTRUMENT OF WRIT ING TRANSFERRING THE 31 HOUSE BILL 837 3
97	97
98	98
99	99	RESIDENTIAL PROPERTY IN THE LAND RECORDS OF THE COUNTY IN WHI CH THE 1
100	100	RESIDENTIAL PROPERTY IS LOCATED. 2
101	101
102	102	[(d)] (E) The supervisor of assessments shall provide a receipt to the person 3
103	103	providing a copy of the ratification order. 4
104	104
105	105	[(e)] (F) If a copy of the ratification order is not provided to the supervisor of 5
106	106	assessments as required under subsection (b) of this section, any reduction in property tax 6
107	107	received by the residential property because of its status as an owner–occupied principal 7
108	108	residence from the date of the entry of the ratification order until the earlier of the receipt 8
109	109	by the supervisor of assessments of a copy of the ratification order or the recordation in the 9
110	110	land records of an instrument of writing transferring the property to a third party shall 10
111	111	remain due and collectable as a property tax under Title 14 of the Tax – Property Article. 11
112	112
113	113	7–105.19. 12
114	114
115	115	(A) IN THIS SECTION , “GOVERNING BODY ” MEANS A PERSON WITH THE 13
116	116	AUTHORITY TO ENFORCE A DECLARATION , BYLAWS, RULES, OR REGULATIONS OF A 14
117	117	CONDOMINI UM OR HOMEOWNERS ASSOCI ATION. 15
118	118
119	119	(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF 16
120	120	RESIDENTIAL PROPERTY SUBJECT TO A CONDOMI NIUM REGIME OR HOMEO WNERS 17
121	121	ASSOCIATION IS PURCHASED AT A SALE IN AN ACTION TO FORE CLOSE A MORTGAGE 18
122	122	OR DEED OF TRUST ON THE RESIDENTIAL PROP ERTY, THE PURCHASER SHALL 19
123	123	IMMEDIATELY BEGIN PAYMENT TO THE GOVERNING BODY O F A CONDOMINIUM OR 20
124	124	HOMEOWNERS ASSOCIATI ON IN WHICH THE RESIDEN TIAL PROPERTY IS LOC ATED OF 21
125	125	ANY REGULAR ASSESSMENTS FOR COMMON EXPENSES THAT ARE LEVIED IN 22
126	126	ACCORDANCE WITH THE REQUIREMENTS OF THE GOVERNING DOCUMENTS OF THE 23
127	127	CONDOMINIUM OR HOMEOWNERS ASSOCI ATION. 24
128	128
129	129	(2) THE PURCHASER SHALL P AY REGULAR ASSESSMENTS LEVIED IN 25
130	130	ACCORDANCE WITH THE GOVERNING DOCUMENTS OF THE CONDOMINIUM O R 26
131	131	HOMEOWNERS ASSOCIATI ON UNTIL THE TITLE TO T HE RESIDENTIAL PROPE RTY IS 27
132	132	RECORDED BY A NEW OW NER. 28
133	133
134	134	(C) IF A PURCHASER FAILS TO PAY REGULAR ASSES SMENTS AS REQUIRED 29
135	135	UNDER SUBSECTION (B) OF THIS SECTION , THE GOVERNING BODY OF A 30
136	136	CONDOMINIUM OR HOMEO WNERS ASSOCIATION MAY CHARGE THE PURCHASER A 31
137	137	FINE OF UP TO $500 PER MONTH THAT THE P URCHASER FAILS TO PA Y THE 32
138	138	ASSESSMENT . 33
139	139
140	140	SECTION 2. AND BE IT FURTHER ENACTED, That this Act sha ll take effect 34
141	141	October 1, 2023. 35