MD
Maryland House Bill HB143

Maryland 2024 Regular Session

Maryland House Bill HB143 Compare Versions

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1- WES MOORE, Governor Ch. 292
21
3-– 1 –
4-Chapter 292
5-(House Bill 143)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb0143*
810
9-Condominiums – Sales Contracts – Asbestos Disclosure
11+HOUSE BILL 143
12+N1 (4lr0920)
13+ENROLLED BILL
14+— Environment and Transportation/Judicial Proceedings —
15+Introduced by Delegate Foley Delegates Foley, Holmes, and Ruth
1016
11-FOR the purpose of establishing the unenforceability of contracts for the sale of
12-condominium units that do not contain certain notice relating to the presence of
13-asbestos; and generally relating to contracts for the sale of condominium units.
17+Read and Examined by Proofreaders:
1418
15-BY repealing and reenacting, with amendments,
16- Article – Real Property
17-Section 11–126(a) and 11–135(a)(4)(x) and (xi) and (5) 11–135(a)(5) and (g)(1)
18- Annotated Code of Maryland
19- (2023 Replacement Volume)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2023
21-BY adding to
22- Article – Real Property
23-Section 11–135(a)(4)(xii)
24- Annotated Code of Maryland
25- (2023 Replacement Volume)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
2625
27- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
28-That the Laws of Maryland read as follows:
26+_______ day of _______________ at ________________________ o’clock, ________M.
2927
30-Article – Real Property
28+______________________________________________
29+Speaker.
3130
32-11–126.
31+CHAPTER ______
3332
34- (a) A contract for the initial sale of a unit to a member of the public is not
35-enforceable by the vendor unless:
33+AN ACT concerning 1
3634
37- (1) The purchaser is given on or before the time a contract is entered into
38-between the vendor and the purchaser, a current public offering statement as amended and
39-registered with the Secretary of State containing all of the information set forth in
40-subsection (b) of this section; and
35+Condominiums – Sales Contracts – Asbestos Disclosure 2
4136
42- (2) The contract of sale contains, in conspicuous type, a notice of:
37+FOR the purpose of establishing the unenforceability of contracts for the sale of 3
38+condominium units that do not contain certain notice relating to the presence of 4
39+asbestos; and generally relating to contracts for the sale of condominium units. 5
4340
44- (i) The purchaser’s right to receive a public offering statement and
45-his rescission rights under this section; [and]
41+BY repealing and reenacting, with amendments, 6
42+ Article – Real Property 7
43+Section 11–126(a) and 11–135(a)(4)(x) and (xi) and (5) 11–135(a)(5) and (g)(1) 8
44+ Annotated Code of Maryland 9
45+ (2023 Replacement Volume) 10
4646
47- (ii) 1. The warranties provided by § 11–131 of this title; and
48- Ch. 292 2024 LAWS OF MARYLAND
47+BY adding to 11
48+ Article – Real Property 12
49+Section 11–135(a)(4)(xii) 13 2 HOUSE BILL 143
4950
50-– 2 –
51- 2. Whether the council of unit owners has entered into any
52-agreement that settles or releases the council of unit owners’ claims related to common
53-element warranties under § 11–131 of this title; AND
5451
55- (III) A STATEMENT AS TO WHET HER THE VENDOR HAS A CTUAL
56-KNOWLEDGE OF THE PRE SENCE OF ASBESTOS ON THE SITE IN THE CONDOMINIUM ,
57-INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER
58-ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT .
52+ Annotated Code of Maryland 1
53+ (2023 Replacement Volume) 2
5954
60-11–135.
55+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
56+That the Laws of Maryland read as follows: 4
6157
62- (a) Except as provided in subsection (b) of this section, a contract for the resale of
63-a unit by a unit owner other than a developer is not enforceable unless the contract of sale
64-contains in conspicuous type a notice in the form specified in subsection (g)(1) of this
65-section, and the unit owner furnishes to the purchaser not later than 15 days prior to
66-closing:
58+Article – Real Property 5
6759
68- (4) A certificate containing:
60+11–126. 6
6961
70- (x) A description of any recreational or other facilities which are to
71-be used by the unit owners or maintained by them or the council of unit owners, and a
72-statement as to whether or not they are to be a part of the common elements; [and]
62+ (a) A contract for the initial sale of a unit to a member of the public is not 7
63+enforceable by the vendor unless: 8
7364
74- (xi) 1. A statement as to whether the council of unit owners has
75-entered into any agreement that settles or releases the council of unit owners’ claims
76-related to common element warranties under § 11–131 of this title; and
65+ (1) The purchaser is given on or before the time a contract is entered into 9
66+between the vendor and the purchaser, a current public offering statement as amended and 10
67+registered with the Secretary of State containing all of the information set forth in 11
68+subsection (b) of this section; and 12
7769
78- 2. A statement as to whether the board of directors has
79-disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the
80-board’s intention to enter into an agreement for the purpose of settling a disputed common
81-element warranty claim under § 11–131 of this title; AND
70+ (2) The contract of sale contains, in conspicuous type, a notice of: 13
8271
83- (XII) A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT
84-OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON THE SITE IN
85-THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE
86-ASBESTOS, WHETHER ABATEMENT HA S BEEN PERFORMED , AND THE DATE OF ANY
87-ABATEMENT ;
72+ (i) The purchaser’s right to receive a public offering statement and 14
73+his rescission rights under this section; [and] 15
8874
89- (5) A statement by the unit owner as to whether the unit owner has
90-knowledge:
75+ (ii) 1. The warranties provided by § 11–131 of this title; and 16
9176
92- (i) That any alteration to the unit or to the limited common
93-elements assigned to the unit violates any provision of the declaration, bylaws, or rules and
94-regulations;
95- WES MOORE, Governor Ch. 292
77+ 2. Whether the council of unit owners has entered into any 17
78+agreement that settles or releases the council of unit owners’ claims related to common 18
79+element warranties under § 11–131 of this title; AND 19
9680
97-– 3 –
98- (ii) Of any violation of the health or building codes with respect to
99-the unit or the limited common elements assigned to the unit; [and]
81+ (III) A STATEMENT AS TO WHET HER THE VENDOR HAS A CTUAL 20
82+KNOWLEDGE OF THE PRE SENCE OF ASBESTOS ON THE SITE IN THE CONDOMINIUM , 21
83+INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 22
84+ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT . 23
10085
101- (iii) That the unit is subject to an extended lease under § 11–137 of
102-this title or under local law, and if so, a copy of the lease must be provided; and
86+11–135. 24
10387
104- (IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING
105-A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER ABATEMENT
106-HAS BEEN PERFORMED I N THE UNIT DURING TH E OCCUPANCY OF THE O WNER; AND
88+ (a) Except as provided in subsection (b) of this section, a contract for the resale of 25
89+a unit by a unit owner other than a developer is not enforceable unless the contract of sale 26
90+contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 27
91+section, and the unit owner furnishes to the purchaser not later than 15 days prior to 28
92+closing: 29
10793
108- (g) (1) A notice given as required by subsection (a) of this section shall be
109-sufficient for the purposes of this section if it is in substantially the following form:
94+ (4) A certificate containing: 30
95+ HOUSE BILL 143 3
11096
111-“NOTICE
11297
113- The seller is required by law to furnish to you not later than 15 days prior to closing
114-certain information concerning the condominium which is described in § 11–135 of the
115-Maryland Condominium Act. This information must include at least the following:
98+ (x) A description of any recreational or other facilities which are to 1
99+be used by the unit owners or maintained by them or the council of unit owners, and a 2
100+statement as to whether or not they are to be a part of the common elements; [and] 3
116101
117- (i) A copy of the declaration (other than the plats);
102+ (xi) 1. A statement as to whether the council of unit owners has 4
103+entered into any agreement that settles or releases the council of unit owners’ claims 5
104+related to common element warranties under § 11–131 of this title; and 6
118105
119- (ii) A copy of the bylaws;
106+ 2. A statement as to whether the board of directors has 7
107+disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 8
108+board’s intention to enter into an agreement for the purpose of settling a disputed common 9
109+element warranty claim under § 11–131 of this title; AND 10
120110
121- (iii) A copy of the rules and regulations of the condominium;
111+ (XII) A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 11
112+OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE IN 12
113+THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE 13
114+ASBESTOS, WHETHER ABATEMENT HA S BEEN PERFORMED , AND THE DATE OF ANY 14
115+ABATEMENT ; 15
122116
123- (iv) A certificate containing:
117+ (5) A statement by the unit owner as to whether the unit owner has 16
118+knowledge: 17
124119
125- 1. A statement disclosing the effect on the proposed
126-conveyance of any right of first refusal or other restraint on the free alienability of the unit,
127-other than any restraint created by the unit owner;
120+ (i) That any alteration to the unit or to the limited common 18
121+elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 19
122+regulations; 20
128123
129- 2. A statement of the amount of the mo nthly common
130-expense assessment and any unpaid common expense or special assessment currently due
131-and payable from the selling unit owner;
124+ (ii) Of any violation of the health or building codes with respect to 21
125+the unit or the limited common elements assigned to the unit; [and] 22
132126
133- 3. A statement of any other fees payable by the unit owners
134-to the council of unit owners;
127+ (iii) That the unit is subject to an extended lease under § 11–137 of 23
128+this title or under local law, and if so, a copy of the lease must be provided; and 24
135129
136- 4. A statement of any capital expenditures approved by the
137-council of unit owners or its authorized designee planned at the time of the conveyance
138-which are not reflected in the current operating budget included in the certificate;
130+ (IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING 25
131+A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER ABATEMENT 26
132+HAS BEEN PERFORMED I N THE UNIT DURING TH E OCCUPANCY OF THE O WNER; AND 27
139133
140- 5. The most recently prepared balance sheet and income and
141-expense statement, if any, of the condominium;
142- Ch. 292 2024 LAWS OF MARYLAND
134+ (g) (1) A notice given as required by subsection (a) of this section shall be 28
135+sufficient for the purposes of this section if it is in substantially the following form: 29
143136
144-– 4 –
145- 6. The current operating budget of the condominium,
146-including details concerning the amount of the reserve fund for repair and replacement and
147-its intended use, or a statement that there is no reserve fund;
137+“NOTICE 30
148138
149- 7. A statement of any judgments against the condominium
150-and the existence of any pending suits to which the council of unit owners is a party;
139+ The seller is required by law to furnish to you not later than 15 days prior to closing 31
140+certain information concerning the condominium which is described in § 11–135 of the 32
141+Maryland Condominium Act. This information must include at least the following: 33
151142
152- 8. A statement generally describing any insurance policies
153-provided for the benefit of the unit owners, a notice that the policies are available for
154-inspection stating the location at which they are available, and a notice that the terms of
155-the policy prevail over the general description;
143+ (i) A copy of the declaration (other than the plats); 34 4 HOUSE BILL 143
156144
157- 9. A statement as to whether the council of unit owners has
158-knowledge that any alteration or improvement to the unit or to the limited common
159-elements assigned to the unit violates any provision of the declaration, bylaws, or rules or
160-regulations;
161145
162- 10. A statement as to whether the council of unit owners has
163-knowledge of any violation of the health or building codes with respect to the unit, the
164-limited common elements assigned to the unit, or any other portion of the condominium,
165-INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES REL ATED TO
166-ASBESTOS;
167146
168- 11. A statement of the remaining term of any leasehold estate
169-affecting the condominium and the provisions governing any extension or renewal of it;
147+ (ii) A copy of the bylaws; 1
170148
171- 12. A description of any recreational or other facilities which
172-are to be used by the unit owners or maintained by them or the council of unit owners, and
173-a statement as to whether or not they are to be a part of the common elements; [and]
149+ (iii) A copy of the rules and regulations of the condominium; 2
174150
175- 13. A. A statement as to whether the council of unit
176-owners has entered into any agreement that settles or releases the council of unit owners’
177-claims related to common element warranties under § 11–131 of this title; and
151+ (iv) A certificate containing: 3
178152
179- B. A statement as to whether the board of directors has
180-disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the
181-board’s intention to enter into an agreement for the purpose of settling a disputed common
182-element warranty claim under § 11–131 of this title; and
153+ 1. A statement disclosing the effect on the proposed 4
154+conveyance of any right of first refusal or other restraint on the free alienability of the unit, 5
155+other than any restraint created by the unit owner; 6
183156
184- 14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT
185-OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESEN CE OF ASBESTOS ON TH E SITE IN
186-THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE
187-ASBESTOS, WHETHER ABATEMENT WA S PERFORMED , AND THE DATE OF ANY
188-ABATEMENT ; AND
189- WES MOORE, Governor Ch. 292
157+ 2. A statement of the amount of the monthly common 7
158+expense assessment and any unpaid common expense or special assessment currently due 8
159+and payable from the selling unit owner; 9
190160
191-– 5 –
192- (v) A statement by the unit owner as to whether the unit owner has
193-knowledge:
161+ 3. A statement of any other fees payable by the unit owners 10
162+to the council of unit owners; 11
194163
195- 1. That any alteration to the unit or to the limited common
196-elements assigned to the unit violates any provision of the declaration, bylaws, or rules and
197-regulations.
164+ 4. A statement of any capital expenditures approved by the 12
165+council of unit owners or its authorized designee planned at the time of the conveyance 13
166+which are not reflected in the current operating budget included in the certificate; 14
198167
199- 2. Of any violation of the health or building codes with
200-respect to the unit or the limited common elements assigned to the unit.
168+ 5. The most recently prepared balance sheet and income and 15
169+expense statement, if any, of the condominium; 16
201170
202- 3. That the unit is subject to an extended lease under §
203-11–137 of this title or under local law, and if so, a copy of the lease must be provided.
171+ 6. The current operating budget of the condominium, 17
172+including details concerning the amount of the reserve fund for repair and replacement and 18
173+its intended use, or a statement that there is no reserve fund; 19
204174
205- 4. OF THE PRESENCE OF ASBESTOS IN THE UNIT ,
206-INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , AND WHETHER
207-ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE
208-OWNER.
175+ 7. A statement of any judgments against the condominium 20
176+and the existence of any pending suits to which the council of unit owners is a party; 21
209177
210- You will have the right to cancel this contract without penalty, at any time within 7
211-days following delivery to you of all of this information. However, once the sale is closed,
212-your right to cancel the contract is terminated.”.
178+ 8. A statement generally describing any insurance policies 22
179+provided for the benefit of the unit owners, a notice that the policies are available for 23
180+inspection stating the location at which they are available, and a notice that the terms of 24
181+the policy prevail over the general description; 25
213182
214- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
215-October 1, 2024.
183+ 9. A statement as to whether the council of unit owners has 26
184+knowledge that any alteration or improvement to the unit or to the limited common 27
185+elements assigned to the unit violates any provision of the declaration, bylaws, or rules or 28
186+regulations; 29
216187
217-Approved by the Governor, April 25, 2024.
188+ 10. A statement as to whether the council of unit owners has 30
189+knowledge of any violation of the health or building codes with respect to the unit, the 31
190+limited common elements assigned to the unit, or any other portion of the condominium, 32 HOUSE BILL 143 5
191+
192+
193+INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES RELAT ED TO 1
194+ASBESTOS; 2
195+
196+ 11. A statement of the remaining term of any leasehold estate 3
197+affecting the condominium and the provisions governing any extension or renewal of it; 4
198+
199+ 12. A description of any recreational or other facilities which 5
200+are to be used by the unit owners or maintained by them or the council of unit owners, and 6
201+a statement as to whether or not they are to be a part of the common elements; [and] 7
202+
203+ 13. A. A statement as to whether the council of unit 8
204+owners has entered into any agreement that settles or releases the council of unit owners’ 9
205+claims related to common element warranties under § 11–131 of this title; and 10
206+
207+ B. A statement as to whether the board of directors has 11
208+disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 12
209+board’s intention to enter into an agreement for the purpose of settling a disputed common 13
210+element warranty claim under § 11–131 of this title; and 14
211+
212+ 14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 15
213+OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE IN 16
214+THE CONDOMINIUM , INCLUDING A DESCRIPT ION OF THE LOCATION OF THE 17
215+ASBESTOS, WHETHER ABATEMENT WA S PERFORMED , AND THE DATE OF ANY 18
216+ABATEMENT ; AND 19
217+
218+ (v) A statement by the unit owner as to whether the unit owner has 20
219+knowledge: 21
220+
221+ 1. That any alteration to the unit or to the limited common 22
222+elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 23
223+regulations. 24
224+
225+ 2. Of any violation of the health or building codes with 25
226+respect to the unit or the limited common elements assigned to the unit. 26
227+
228+ 3. That the unit is subject to an extended lease under § 27
229+11–137 of this title or under local law, and if so, a copy of the lease must be provided. 28
230+
231+ 4. OF THE PRESENCE OF AS BESTOS IN THE UNIT , 29
232+INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , AND WHETHER 30
233+ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE 31
234+OWNER. 32
235+
236+ You will have the right to cancel this contract without penalty, at any time within 7 33
237+days following delivery to you of all of this information. However, once the sale is closed, 34
238+your right to cancel the contract is terminated.”. 35 6 HOUSE BILL 143
239+
240+
241+
242+ SECTION 2. AND BE IT FURTHER ENACTED, T hat this Act shall take effect 1
243+October 1, 2024. 2
244+
245+
246+
247+Approved:
248+________________________________________________________________________________
249+ Governor.
250+________________________________________________________________________________
251+ Speaker of the House of Delegates.
252+________________________________________________________________________________
253+ President of the Senate.