EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0143*
HOUSE BILL 143
N1 (4lr0920)
ENROLLED BILL
— Environment and Transportation/Judicial Proceedings —
Introduced by Delegate Foley Delegates Foley, Holmes, and Ruth
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
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) 11–135(a)(5) and (g)(1) 8
Annotated Code of Maryland 9
(2023 Replacement Volume) 10
BY adding to 11
Article – Real Property 12
Section 11–135(a)(4)(xii) 13 2 HOUSE BILL 143
Annotated Code of Maryland 1
(2023 Replacement Volume) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Real Property 5
11–126. 6
(a) A contract for the initial sale of a unit to a member of the public is not 7
enforceable by the vendor unless: 8
(1) The purchaser is given on or before the time a contract is entered into 9
between the vendor and the purchaser, a current public offering statement as amended and 10
registered with the Secretary of State containing all of the information set forth in 11
subsection (b) of this section; and 12
(2) The contract of sale contains, in conspicuous type, a notice of: 13
(i) The purchaser’s right to receive a public offering statement and 14
his rescission rights under this section; [and] 15
(ii) 1. The warranties provided by § 11–131 of this title; and 16
2. Whether the council of unit owners has entered into any 17
agreement that settles or releases the council of unit owners’ claims related to common 18
element warranties under § 11–131 of this title; AND 19
(III) A STATEMENT AS TO WHET HER THE VENDOR HAS A CTUAL 20
KNOWLEDGE OF THE PRE SENCE OF ASBESTOS ON THE SITE IN THE CONDOMINIUM , 21
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 22
ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT . 23
11–135. 24
(a) Except as provided in subsection (b) of this section, a contract for the resale of 25
a unit by a unit owner other than a developer is not enforceable unless the contract of sale 26
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 27
section, and the unit owner furnishes to the purchaser not later than 15 days prior to 28
closing: 29
(4) A certificate containing: 30
HOUSE BILL 143 3
(x) A description of any recreational or other facilities which are to 1
be used by the unit owners or maintained by them or the council of unit owners, and a 2
statement as to whether or not they are to be a part of the common elements; [and] 3
(xi) 1. A statement as to whether the council of unit owners has 4
entered into any agreement that settles or releases the council of unit owners’ claims 5
related to common element warranties under § 11–131 of this title; and 6
2. A statement as to whether the board of directors has 7
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 8
board’s intention to enter into an agreement for the purpose of settling a disputed common 9
element warranty claim under § 11–131 of this title; AND 10
(XII) A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 11
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE IN 12
THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE 13
ASBESTOS, WHETHER ABATEMENT HA S BEEN PERFORMED , AND THE DATE OF ANY 14
ABATEMENT ; 15
(5) A statement by the unit owner as to whether the unit owner has 16
knowledge: 17
(i) That any alteration to the unit or to the limited common 18
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 19
regulations; 20
(ii) Of any violation of the health or building codes with respect to 21
the unit or the limited common elements assigned to the unit; [and] 22
(iii) That the unit is subject to an extended lease under § 11–137 of 23
this title or under local law, and if so, a copy of the lease must be provided; and 24
(IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING 25
A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER ABATEMENT 26
HAS BEEN PERFORMED I N THE UNIT DURING TH E OCCUPANCY OF THE O WNER; AND 27
(g) (1) A notice given as required by subsection (a) of this section shall be 28
sufficient for the purposes of this section if it is in substantially the following form: 29
“NOTICE 30
The seller is required by law to furnish to you not later than 15 days prior to closing 31
certain information concerning the condominium which is described in § 11–135 of the 32
Maryland Condominium Act. This information must include at least the following: 33
(i) A copy of the declaration (other than the plats); 34 4 HOUSE BILL 143
(ii) A copy of the bylaws; 1
(iii) A copy of the rules and regulations of the condominium; 2
(iv) A certificate containing: 3
1. A statement disclosing the effect on the proposed 4
conveyance of any right of first refusal or other restraint on the free alienability of the unit, 5
other than any restraint created by the unit owner; 6
2. A statement of the amount of the monthly common 7
expense assessment and any unpaid common expense or special assessment currently due 8
and payable from the selling unit owner; 9
3. A statement of any other fees payable by the unit owners 10
to the council of unit owners; 11
4. A statement of any capital expenditures approved by the 12
council of unit owners or its authorized designee planned at the time of the conveyance 13
which are not reflected in the current operating budget included in the certificate; 14
5. The most recently prepared balance sheet and income and 15
expense statement, if any, of the condominium; 16
6. The current operating budget of the condominium, 17
including details concerning the amount of the reserve fund for repair and replacement and 18
its intended use, or a statement that there is no reserve fund; 19
7. A statement of any judgments against the condominium 20
and the existence of any pending suits to which the council of unit owners is a party; 21
8. A statement generally describing any insurance policies 22
provided for the benefit of the unit owners, a notice that the policies are available for 23
inspection stating the location at which they are available, and a notice that the terms of 24
the policy prevail over the general description; 25
9. A statement as to whether the council of unit owners has 26
knowledge that any alteration or improvement to the unit or to the limited common 27
elements assigned to the unit violates any provision of the declaration, bylaws, or rules or 28
regulations; 29
10. A statement as to whether the council of unit owners has 30
knowledge of any violation of the health or building codes with respect to the unit, the 31
limited common elements assigned to the unit, or any other portion of the condominium, 32 HOUSE BILL 143 5
INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES RELAT ED TO 1
ASBESTOS; 2
11. A statement of the remaining term of any leasehold estate 3
affecting the condominium and the provisions governing any extension or renewal of it; 4
12. A description of any recreational or other facilities which 5
are to be used by the unit owners or maintained by them or the council of unit owners, and 6
a statement as to whether or not they are to be a part of the common elements; [and] 7
13. A. A statement as to whether the council of unit 8
owners has entered into any agreement that settles or releases the council of unit owners’ 9
claims related to common element warranties under § 11–131 of this title; and 10
B. A statement as to whether the board of directors has 11
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 12
board’s intention to enter into an agreement for the purpose of settling a disputed common 13
element warranty claim under § 11–131 of this title; and 14
14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 15
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE IN 16
THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE 17
ASBESTOS, WHETHER ABATEMENT WA S PERFORMED , AND THE DATE OF ANY 18
ABATEMENT ; AND 19
(v) A statement by the unit owner as to whether the unit owner has 20
knowledge: 21
1. That any alteration to the unit or to the limited common 22
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 23
regulations. 24
2. Of any violation of the health or building codes with 25
respect to the unit or the limited common elements assigned to the unit. 26
3. That the unit is subject to an extended lease under § 27
11–137 of this title or under local law, and if so, a copy of the lease must be provided. 28
4. OF THE PRESENCE OF AS BESTOS IN THE UNIT , 29
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , AND WHETHER 30
ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE 31
OWNER. 32
You will have the right to cancel this contract without penalty, at any time within 7 33
days following delivery to you of all of this information. However, once the sale is closed, 34
your right to cancel the contract is terminated.”. 35 6 HOUSE BILL 143
SECTION 2. AND BE IT FURTHER ENACTED, T hat this Act shall take effect 1
October 1, 2024. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.