MD
Maryland Senate Bill SB46

Maryland 2024 Regular Session

Maryland Senate Bill SB46 Compare Versions

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1- WES MOORE, Governor Ch. 291
21
3-– 1 –
4-Chapter 291
5-(Senate Bill 46)
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+ *sb0046*
810
9-Condominiums – Sales Contracts – Asbestos Disclosure
11+SENATE BILL 46
12+N1 (4lr0921)
13+ENROLLED BILL
14+— Judicial Proceedings/Environment and Transportation —
15+Introduced by Senator Waldstreicher
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+President.
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. 291 2024 LAWS OF MARYLAND
47+BY adding to 11
48+ Article – Real Property 12
49+Section 11–135(a)(4)(xii) 13 2 SENATE BILL 46
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 ,
85-INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER
86-ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT ;
72+ (i) The purchaser’s right to receive a public offering statement and 14
73+his rescission rights under this section; [and] 15
8774
88- (5) A statement by the unit owner as to whether the unit owner has
89-knowledge:
75+ (ii) 1. The warranties provided by § 11–131 of this title; and 16
9076
91- (i) That any alteration to the unit or to the limited common
92-elements assigned to the unit violates any provision of the declaration, bylaws, or rules and
93-regulations;
94- WES MOORE, Governor Ch. 291
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
9580
96-– 3 –
97- (ii) Of any violation of the health or building codes with respect to
98-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
9985
100- (iii) That the unit is subject to an extended lease under § 11–137 of
101-this title or under local law, and if so, a copy of the lease must be provided; and
86+11–135. 24
10287
103- (IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING
104-A DESCRIPTION OF THE L OCATION OF THE ASBES TOS, AND WHETHER ABATEMENT
105-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
10693
107- (g) (1) A notice given as required by subsection (a) of this section shall be
108-sufficient for the purposes of this section if it is in substantially the following form:
94+ (4) A certificate containing: 30
95+ SENATE BILL 46 3
10996
110-“NOTICE
11197
112- The seller is required by law to furnish to you not later than 15 days prior to closing
113-certain information concerning the condominium which is described in § 11–135 of the
114-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
115101
116- (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
117105
118- (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
119110
120- (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, 12
113+INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 13
114+ABATEMENT HAS BEEN P ERFORMED , AND THE DATE OF ANY ABATEMENT ; 14
121115
122- (iv) A certificate containing:
116+ (5) A statement by the unit owner as to whether the unit owner has 15
117+knowledge: 16
123118
124- 1. A statement disclosing the effect on the proposed
125-conveyance of any right of first refusal or other restraint on the free alienability of the unit,
126-other than any restraint created by the unit owner;
119+ (i) That any alteration to the unit or to the limited common 17
120+elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 18
121+regulations; 19
127122
128- 2. A statement of the amount of the monthly common
129-expense assessment and any unpaid common expense or special assessment currently due
130-and payable from the selling unit owner;
123+ (ii) Of any violation of the health or building codes with respect to 20
124+the unit or the limited common elements assigned to the unit; [and] 21
131125
132- 3. A statement of any other fees payable by the unit owners
133-to the council of unit owners;
126+ (iii) That the unit is subject to an extended lease under § 11–137 of 22
127+this title or under local law, and if so, a copy of the lease must be provided; and 23
134128
135- 4. A statement of any capital expenditures approved by the
136-council of unit owners or its authorized designee planned at the time of the conveyance
137-which are not reflected in the current operating budget included in the certificate;
129+ (IV) OF THE PRESENCE OF AS BESTOS IN THE UNIT , INCLUDING 24
130+A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER ABATEMENT 25
131+HAS BEEN PERFORMED I N THE UNIT DURING TH E OCCUPANCY OF THE O WNER; AND 26
138132
139- 5. The most recently prepared balance sheet and income and
140-expense statement, if any, of the condominium;
141- Ch. 291 2024 LAWS OF MARYLAND
133+ (g) (1) A notice given as required by subsection (a) of this section shall be 27
134+sufficient for the purposes of this section if it is in substantially the following form: 28
142135
143-– 4 –
144- 6. The current operating budget of the condominium,
145-including details concerning the amount of the reserve fund for repair and replacement and
146-its intended use, or a statement that there is no reserve fund;
136+“NOTICE 29
147137
148- 7. A statement of any judgments against the condominium
149-and the existence of any pending suits to which the council of unit owners is a party;
138+ The seller is required by law to furnish to you not later than 15 days prior to closing 30
139+certain information concerning the condominium which is described in § 11–135 of the 31
140+Maryland Condominium Act. This information must include at least the following: 32
150141
151- 8. A statement generally describing any insurance policies
152-provided for the benefit of the unit owners, a notice that the policies are available for
153-inspection stating the location at which they are available, and a notice that the terms of
154-the policy prevail over the general description;
142+ (i) A copy of the declaration (other than the plats); 33
143+ 4 SENATE BILL 46
155144
156- 9. A statement as to whether the council of unit owners has
157-knowledge that any alteration or improvement to the unit or to the limited common
158-elements assigned to the unit violates any provision of the declaration, bylaws, or rules or
159-regulations;
160145
161- 10. A statement as to whether the council of unit owners has
162-knowledge of any violation of the health or building codes with respect to the unit, the
163-limited common elements assigned to the unit, or any other portion of the condominium,
164-INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES RELAT ED TO
165-ASBESTOS;
146+ (ii) A copy of the bylaws; 1
166147
167- 11. A statement of the remaining term of any leasehold estate
168-affecting the condominium and the provisions governing any extension or renewal of it;
148+ (iii) A copy of the rules and regulations of the condominium; 2
169149
170- 12. A description of any recreational or other facilities which
171-are to be used by the unit owners or maintained by them or the council of unit owners, and
172-a statement as to whether or not they are to be a part of the common elements; [and]
150+ (iv) A certificate containing: 3
173151
174- 13. A. A statement as to whether the council of unit
175-owners has entered into any agreement that settles or releases the council of unit owners’
176-claims related to common element warranties under § 11–131 of this title; and
152+ 1. A statement disclosing the effect on the proposed 4
153+conveyance of any right of first refusal or other restraint on the free alienability of the unit, 5
154+other than any restraint created by the unit owner; 6
177155
178- B. A statement as to whether the board of directors has
179-disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the
180-board’s intention to enter into an agreement for the purpose of settling a disputed common
181-element warranty claim under § 11–131 of this title; and
156+ 2. A statement of the amount of the monthly common 7
157+expense assessment and any unpaid common expense or special assessment currently due 8
158+and payable from the selling unit owner; 9
182159
183- 14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT
184-OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESENCE OF A SBESTOS ON THE SITE ,
185-INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER
186-ABATEMENT WAS PERFOR MED, AND THE DATE OF ANY ABATEMENT ; AND
187- WES MOORE, Governor Ch. 291
160+ 3. A statement of any other fees payable by the unit owners 10
161+to the council of unit owners; 11
188162
189-– 5 –
190- (v) A statement by the unit owner as to whether the unit owner has
191-knowledge:
163+ 4. A statement of any capital expenditures approved by the 12
164+council of unit owners or its authorized designee planned at the time of the conveyance 13
165+which are not reflected in the current operating budget included in the certificate; 14
192166
193- 1. That any alteration to the unit or to the limited common
194-elements assigned to the unit violates any provision of the declaration, bylaws, or rules and
195-regulations.
167+ 5. The most recently prepared balance sheet and income and 15
168+expense statement, if any, of the condominium; 16
196169
197- 2. Of any violation of the health or building codes with
198-respect to the unit or the limited common elements assigned to the unit.
170+ 6. The current operating budget of the condominium, 17
171+including details concerning the amount of the reserve fund for repair and replacement and 18
172+its intended use, or a statement that there is no reserve fund; 19
199173
200- 3. That the unit is subject to an extended lease under §
201-11–137 of this title or under local law, and if so, a copy of the lease must be provided.
174+ 7. A statement of any judgments against the condominium 20
175+and the existence of any pending suits to which the council of unit owners is a party; 21
202176
203- 4. OF THE PRESENCE OF AS BESTOS IN THE UNIT ,
204-INCLUDING A DESCRIPTION OF THE LOCATION OF THE ASBE STOS, AND WHETHER
205-ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE
206-OWNER.
177+ 8. A statement generally describing any insurance policies 22
178+provided for the benefit of the unit owners, a notice that the policies are available for 23
179+inspection stating the location at which they are available, and a notice that the terms of 24
180+the policy prevail over the general description; 25
207181
208- You will have the right to cancel this contract without penalty, at any time within 7
209-days following delivery to you of all of this information. However, once the sale is closed,
210-your right to cancel the contract is terminated.”.
182+ 9. A statement as to whether the council of unit owners has 26
183+knowledge that any alteration or improvement to the unit or to the limited common 27
184+elements assigned to the unit violates any provision of the declaration, bylaws, or rules or 28
185+regulations; 29
211186
212- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
213-October 1, 2024.
187+ 10. A statement as to whether the council of unit owners has 30
188+knowledge of any violation of the health or building codes with respect to the unit, the 31
189+limited common elements assigned to the unit, or any other portion of the condominium, 32
190+INCLUDING ANY VIOLAT ION OF THE HEALTH OR BUILDING CODES RELAT ED TO 33
191+ASBESTOS; 34 SENATE BILL 46 5
214192
215-Approved by the Governor, April 25, 2024.
193+
194+
195+ 11. A statement of the remaining term of any leasehold estate 1
196+affecting the condominium and the provisions governing any extension or renewal of it; 2
197+
198+ 12. A description of any recreational or other facilities which 3
199+are to be used by the unit owners or maintained by them or the council of unit owners, and 4
200+a statement as to whether or not they are to be a part of the common elements; [and] 5
201+
202+ 13. A. A statement as to whether the council of unit 6
203+owners has entered into any agreement that settles or releases the council of unit owners’ 7
204+claims related to common element warranties under § 11–131 of this title; and 8
205+
206+ B. A statement as to whether the board of directors has 9
207+disclosed to the council of unit owners in accordance with § 11–134.1(c)(2) of this title, the 10
208+board’s intention to enter into an agreement for the purpose of settling a disputed common 11
209+element warranty claim under § 11–131 of this title; and 12
210+
211+ 14. A STATEMENT AS TO WHET HER THE COUNCIL OF U NIT 13
212+OWNERS HAS ACTUAL KN OWLEDGE OF THE PRESE NCE OF ASBESTOS ON T HE SITE, 14
213+INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , WHETHER 15
214+ABATEMENT WAS PERFOR MED, AND THE DATE OF ANY ABATEMENT ; AND 16
215+
216+ (v) A statement by the unit owner as to whether the unit owner has 17
217+knowledge: 18
218+
219+ 1. That any alteration to the unit or to the limited common 19
220+elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 20
221+regulations. 21
222+
223+ 2. Of any violation of the health or building codes with 22
224+respect to the unit or the limited common elements assigned to the unit. 23
225+
226+ 3. That the unit is subject to an extended lease under § 24
227+11–137 of this title or under local law, and if so, a copy of the lease must be provided. 25
228+
229+ 4. OF THE PRESENCE OF AS BESTOS IN THE UNIT , 26
230+INCLUDING A DESCRIPT ION OF THE LOCATION OF THE ASBESTOS , AND WHETHER 27
231+ABATEMENT HAS BEEN P ERFORMED IN THE UNIT DURING THE OCCUPANCY OF THE 28
232+OWNER. 29
233+
234+ You will have the right to cancel this contract without penalty, at any time within 7 30
235+days following delivery to you of all of this information. However, once the sale is closed, 31
236+your right to cancel the contract is terminated.”. 32
237+
238+ SECTION 2. AND BE IT FURTHER ENACTED, T hat this Act shall take effect 33
239+October 1, 2024. 34