Condominiums and Homeowners Associations - Resale Contracts - Notice Requirements (Keeping Affordable Housing Affordable Act)
HB1132 revises Maryland’s condominium and homeowners association resale disclosure rules. The bill changes when sellers must provide required resale documents and notices, moving the deadline from no later than 15 days before closing to within 20 calendar days after entering into the contract for both condominium and HOA sales. It also requires sellers to disclose any later changes in mandatory fees or payments that exceed 10% of the amount previously stated, along with any other substantial and material changes to required disclosures once known to the seller.
The bill also shortens the time for councils of unit owners and homeowners associations to provide disclosure certificates or information after a written request, from 20 days to 10 days, while revising the fee structure they may charge. It caps certain fees at lower amounts, including fees for expedited delivery and financial updates ordered by a settlement agent, and removes prior provisions that allowed higher expedited fees and CPI-based fee adjustments. In addition, it extends the purchaser’s right to cancel a contract after receiving late disclosures from 5 to 7 calendar days, and similarly extends the cancellation period after receiving adverse changes in fees or material amendments.
In practical terms, the bill amends several sections of the Real Property Article, including § 11-135 for condominiums and §§ 11B-106 and 11B-108 for homeowners associations. It affects sellers, buyers, condominium councils, homeowners associations, management agents, and settlement agents by changing disclosure timing, fee limits, and cancellation rights in resale transactions. The title indicates a policy goal of keeping housing affordable by limiting disclosure-related costs and ensuring buyers receive updated information earlier in the transaction process.
The overall sentiment appears strongly favorable. The House committee reported the bill favorably with amendments, the House adopted it, and the recorded third reading vote was unanimous at 125-0. No committee transcript or recorded floor debate is provided, so there is no evidence of substantial opposition in the available materials.
The main points of contention suggested by the text are administrative burden versus consumer protection. On one side, the bill reduces fees and compresses the time associations have to produce disclosures, which may concern condominium and HOA administrators and their agents. On the other side, it strengthens buyer protections by requiring notice of post-contract fee increases and material changes and by extending cancellation rights, which benefits purchasers and supports transparency in resale transactions.
HB1132 amends the Maryland Real Property Article provisions governing condominium and homeowners association resale disclosures. It changes disclosure timing, fee caps, and cancellation periods in §§ 11-135, 11B-106, and 11B-108, thereby affecting the enforceability of resale contracts and the obligations of sellers, councils of unit owners, homeowners associations, and their agents. The bill also removes prior fee-escalation provisions tied to expedited delivery and CPI adjustments, replacing them with lower fixed fee limits and new notice requirements for material changes.
The available legislative history shows broad support for the bill. The House committee reported it favorably with amendments, the House adopted it, and the third reading vote was unanimous (125 yeas, 0 nays). No transcripts or recorded objections are provided, so the bill appears to have moved with little visible opposition in the materials supplied.
The likely tension in HB1132 is between consumer protection and the operational costs imposed on associations and sellers. Supporters would favor earlier and updated disclosure of fee changes, lower disclosure charges, and longer cancellation rights for purchasers. Potentially affected parties such as condominium councils, homeowners associations, management agents, and settlement agents may view the shortened response times and reduced fee authority as burdensome, especially where expedited disclosures or financial updates are needed.