WES MOORE, Governor Ch. 292
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Chapter 292
(House Bill 143)
AN ACT concerning
Condominiums – Sales Contracts – Asbestos Disclosure
FOR the purpose of establishing the unenforceability of contracts for the sale of
condominium units that do not contain certain notice relating to the presence of
asbestos; and generally relating to contracts for the sale of condominium units.
BY repealing and reenacting, with amendments,
Article – Real Property
Section 11–126(a) and 11–135(a)(4)(x) and (xi) and (5) 11–135(a)(5) and (g)(1)
Annotated Code of Maryland
(2023 Replacement Volume)
BY adding to
Article – Real Property
Section 11–135(a)(4)(xii)
Annotated Code of Maryland
(2023 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Real Property
11–126.
(a) A contract for the initial sale of a unit to a member of the public is not
enforceable by the vendor unless:
(1) The purchaser is given on or before the time a contract is entered into
between the vendor and the purchaser, a current public offering statement as amended and
registered with the Secretary of State containing all of the information set forth in
subsection (b) of this section; and
(2) The contract of sale contains, in conspicuous type, a notice of:
(i) The purchaser’s right to receive a public offering statement and
his rescission rights under this section; [and]
(ii) 1. The warranties provided by § 11–131 of this title; and
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2. Whether the council of unit owners has entered into any
agreement that settles or releases the council of unit owners’ claims related to common
element warranties under § 11–131 of this title; AND
(III) A STATEMENT AS TO WHET HER THE VENDOR HAS A CTUAL
KNOWLEDGE OF THE PRE SENCE OF ASBESTOS ON THE SITE IN THE CONDOMINIUM ,
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER
ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT .
11–135.
(a) Except as provided in subsection (b) of this section, a contract for the resale of
a unit by a unit owner other than a developer is not enforceable unless the contract of sale
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this
section, and the unit owner furnishes to the purchaser not later than 15 days prior to
closing:
(4) A certificate containing:
(x) 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; [and]
(xi) 1. A statement as to whether the council of unit owners has
entered into any agreement that settles or releases the council of unit owners’ claims
related to common element warranties under § 11–131 of this title; and
2. A statement as to whether the board of directors has
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the
board’s intention to enter into an agreement for the purpose of settling a disputed common
element warranty claim under § 11–131 of this title; AND
(XII) A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON THE SITE IN
THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE
ASBESTOS, WHETHER ABATEMENT HA S BEEN PERFORMED , AND THE DATE OF ANY
ABATEMENT ;
(5) A statement by the unit owner as to whether the unit owner has
knowledge:
(i) 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;
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(ii) Of any violation of the health or building codes with respect to
the unit or the limited common elements assigned to the unit; [and]
(iii) 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
(IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING
A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER ABATEMENT
HAS BEEN PERFORMED I N THE UNIT DURING TH E OCCUPANCY OF THE O WNER; AND
(g) (1) A notice given as required by subsection (a) of this section shall be
sufficient for the purposes of this section if it is in substantially the following form:
“NOTICE
The seller is required by law to furnish to you not later than 15 days prior to closing
certain information concerning the condominium which is described in § 11–135 of the
Maryland Condominium Act. This information must include at least the following:
(i) A copy of the declaration (other than the plats);
(ii) A copy of the bylaws;
(iii) A copy of the rules and regulations of the condominium;
(iv) A certificate containing:
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 of the amount of the mo nthly 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 or its authorized designee planned at the time of the conveyance
which are not reflected in the current operating budget included in the certificate;
5. The most recently prepared balance sheet and income and
expense statement, if any, of the condominium;
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6. The current operating budget of the condominium,
including details concerning the amount of 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 the unit owners, a notice that the policies are available for
inspection stating the location at which they are available, and a notice that the terms of
the policy prevail over the general 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,
INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES REL ATED TO
ASBESTOS;
11. A statement of the remaining term of any leasehold estate
affecting the condominium and the provisions governing any extension or renewal of it;
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; [and]
13. A. A statement as to whether the council of unit
owners has entered into any agreement that settles or releases the council of unit owners’
claims related to common element warranties under § 11–131 of this title; and
B. A statement as to whether the board of directors has
disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the
board’s intention to enter into an agreement for the purpose of settling a disputed common
element warranty claim under § 11–131 of this title; and
14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT
OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESEN CE OF ASBESTOS ON TH E SITE IN
THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE
ASBESTOS, WHETHER ABATEMENT WA S PERFORMED , AND THE DATE OF ANY
ABATEMENT ; AND
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(v) 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.
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.
4. OF THE PRESENCE OF ASBESTOS IN THE UNIT ,
INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , AND WHETHER
ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE
OWNER.
You will have the right to cancel this contract without penalty, at any time within 7
days following delivery to you of all of this information. However, once the sale is closed,
your right to cancel the contract is terminated.”.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, April 25, 2024.