§ 11B-101.
Definitions
(a) In this title the following words
have the meanings indicated, unless the context requires otherwise.
(b)
"Common areas" means property which is owned or leased by a homeowners
association.
(c)
"Declarant" means any person who subjects property to a declaration.
(d)(1)
"Declaration" means an instrument, however denominated, recorded among the land
records of the county in which the property of the declarant is located, that creates the authority for a
homeowners association to impose on lots, or on the owners or occupants of lots,
or on another homeowners association, condominium, or cooperative housing
corporation any mandatory fee in connection with the provision of services or
otherwise for the benefit of some or all of the lots, the owners or occupants of
lots, or the common areas.
(2)
"Declaration" includes any amendment or supplement to the instruments described
in paragraph (1) of this subsection.
(3)
"Declaration" does not include a private right-of-way or similar agreement
unless it requires a mandatory fee payable annually or at more frequent
intervals.
(e)
"Depository" or "homeowners association depository" means the document file
created by the clerk of the court of each county and the City of Baltimore where
a homeowners association may periodically deposit information as required by
this title.
(f)(1)
"Development" means property subject to a declaration.
(2)
"Development" includes property comprising a condominium or cooperative housing
corporation to the extent that the property is part of a
development.
(3)
"Development" does not include a cooperative housing corporation or a
condominium.
(g)
"Electronic transmission" means any form of communication, not directly
involving the physical transmission of paper, that creates a record
that:
(1)
May be retained, retrieved, and reviewed by a recipient of the
communication; and
(2)
May be reproduced directly in paper form by a recipient through an automated
process.
(h)
"Governing body" means the homeowners association, board of directors, or other
entity established to govern the development.
(i)(1)
"Homeowners association" means a person having the authority to enforce the
provisions of a declaration.
(2)
"Homeowners association" includes an incorporated or unincorporated
association.
(j)(1)
"Lot" means any plot or parcel of land on which a dwelling is located or will be
located within a development.
(2)
"Lot" includes a unit within a condominium or cooperative housing corporation if
the condominium or cooperative housing corporation is part of a
development.
(k)
"Primary development" means a development such that the purchaser of a lot will
pay fees directly to its homeowners association.
(l)
"Recorded covenants and restrictions" means any instrument of writing which is
recorded in the land records of the jurisdiction within which a lot is located,
and which instrument governs or otherwise legally restricts the use of such
lot.
(m)
"Related development" means a development such that the purchaser of a lot will
pay fees to the homeowners association of such development through the
homeowners association of a primary development or another
development.
(n)
"Unaffiliated declarant" means a person who is not affiliated with the vendor of
a lot but who has subjected such property to a declaration required to be
disclosed by this title.
§ 11B-102. Circumstances in which title
applicable
(a) Except as expressly provided in this
title, the provisions of this title apply to all homeowners associations that
exist in the State after July 1, 1987.
(b)
The provisions of § § 11B-105
and 11B-108
of this title do not apply to the initial sale of lots within the development to
members of the public if on July 1, 1987:
(1)
More than 50 percent of the lots included within or to be included within the
development have been sold under a bona fide arm's length contract to members of
the public who intend to occupy or rent the lots for residential purposes; and
(2)
Less than 100 lots included within or to be included within the development have
not been sold under a bona fide arm's length contract to members of the public
who intend to occupy or rent the lots for residential purposes.
(c)
The provisions of § 11B-110
of this title do not apply to common area improvements substantially completed
before July 1, 1987.
(d)
The provisions of § 11B-105
of this title do not apply to developments containing 12 or fewer lots or in
which 12 or fewer lots remain to be sold as of July 1, 1987.
(e)
Except as provided in § 11B-101(f)
of this title, this title does not apply to any property which is:
(1)
Part of a condominium regime governed by Title 11 of this article;
(2)
Part of a cooperative housing corporation;
or
(3)
To be occupied and used for nonresidential purposes.
(f)
For any contract for the sale of a lot that is entered into before July 1, 1987,
the provisions of § § 11B-105,
11B-106,
11B-107,
and 11B-108
of this title do not apply.
§ 11B-103. Variation by agreement
prohibited
Except
as expressly provided in this title, the provisions of this title may not be
varied by agreement, and rights conferred by this title may not be waived. A declarant or vendor may not act under
a power of attorney or use any other device to evade the requirements,
limitations, or prohibitions of this title.
§ 11B-104. Building code, zoning laws
applicable
(a) The provisions of all laws,
ordinances, and regulations concerning building codes or zoning shall have full
force and effect to the extent that they apply to a development and shall be
construed and applied with reference to the overall nature and use of the
property without regard to whether the property is part of a
development.
(b)
A local government may not enact any law, ordinance, or regulation which
would:
(1)
Impose a burden or restriction on property which is part of a development
because it is part of a development;
(2)
Require that additional disclosures relating to the development be made to
purchasers of lots within the development, other than the disclosures required
by § 11B-105,
§ 11B-106,
or § 11B-107
of this title;
(3)
Provide that the disclosures required by § 11B-105,
§ 11B-106,
or § 11B-107
of this title be registered or otherwise subject to the approval of any
governmental agency;
(4)
Provide that additional cancellation rights be provided to purchasers, other
than the cancellation rights under § 11B-108(b) and
(c)
of this title;
(5)
Create additional implied warranties or require additional express warranties on
improvements to common areas other than those warranties described in
§ 11B-110
of this title; or
(6)
Expand the open meeting requirements of § 11B-111
of this title or open record requirements of § 11B-112
of this title.
(c)
Subject to the provisions of this title, a code home rule county located in the
Southern Maryland class, as identified in Article 25B, § 2 of the Code,
may establish a homeowners association commission with the authority to hear and
resolve disputes between a homeowners association and a homeowner regarding the
enforcement of the recorded covenants or restrictions of the homeowners
association by providing alternative dispute resolution services, including
binding arbitration.
§ 11B-105. Larger developments; initial
sale (text removed as OP no longer in this
category.
§ 11B-106. Resale, smaller developments,
initial sale
(a) A contract for the resale of a lot
within a development, or for the initial sale of a lot within a development
containing 12 or fewer lots, to a member of the public who intends to occupy or
rent the lot for residential purposes, is not enforceable by the vendor
unless:
(1)
The purchaser is given, on or before entering into the contract for the sale of
such lot, or within 20 calendar days of entering into the contract, the
disclosures set forth in subsection (b) of this section;
(2)
The purchaser is given any changes in mandatory fees and payments exceeding 10
percent of the amount previously stated to exist and any other substantial and
material amendment to the disclosures after they become known to the
vendor; and
(3)
The contract of sale contains a notice in conspicuous type, which shall include
bold and underscored type, in a form substantially the same as the
following:
"This
sale is subject to the requirements of the Maryland Homeowners Association Act
(the "Act"). The Act requires that the seller disclose to you at or before the
time the contract is entered into, or within 20 calendar days of entering into
the contract, certain information concerning the development in which the lot
you are purchasing is located. The
content of the information to be disclosed is set forth in § 11B-106(b) of the Act (the "MHAA
information") as follows: (The
notice shall include at this point the text of § 11B-106(b) in its entirety).
If
you have not received all of the MHAA information 5 calendar days or more before
entering into the contract, you have 5 calendar days to cancel this contract
after receiving all of the MHAA information. You must cancel the contract in writing,
but you do not have to state a reason.
The seller must also provide you with notice of any changes in mandatory
fees exceeding 10% of the amount previously stated to exist and copies of any
other substantial and material amendment to the information provided to
you. You have 3 calendar days to
cancel this contract after receiving notice of any changes in mandatory fees, or
copies of any other substantial and material amendment to the MHAA information
which adversely affects you. If you
do cancel the contract you will be entitled
to a refund of any deposit you made on account of the contract. However, unless you return the MHAA
information to the seller when you cancel the contract, the seller may keep out
of your deposit the cost of reproducing the MHAA information, or $100, whichever
amount is less.
By
purchasing a lot within this development, you will automatically be subject to
various rights, responsibilities, and obligations, including the obligation to
pay certain assessments to the homeowners association within the
development. The lot you are
purchasing may have restrictions on:
(1)
Architectural changes, design, color, landscaping, or appearance;
(2)
Occupancy density;
(3)
Kind, number, or use of vehicles;
(4)
Renting, leasing, mortgaging, or conveying property;
(5)
Commercial activity; or
(6)
Other matters.
You
should review the MHAA information carefully to ascertain your rights,
responsibilities, and obligations within the development."
(b)
The vendor shall provide the purchaser the following information in
writing:
(1)
A statement as to whether the lot is located within a development;
(2)(i)
The current monthly fees or assessments imposed by the homeowners association
upon the lot;
(ii)
The total amount of fees, assessments, and other charges imposed by the
homeowners association upon the lot during the prior fiscal year of the
homeowners association;
and
(iii)
A statement of whether any of the fees, assessments, or other charges against
the lot are delinquent;
(3)
The name, address, and telephone number of the management agent of the
homeowners association, or other officer or agent authorized by the homeowners
association to provide to members of the public, information regarding the
homeowners association and the development, or a statement that no agent or
officer is presently so authorized by the homeowners association;
(4)
A statement as to whether the owner has actual knowledge of:
(i)
The existence of any unsatisfied judgments or pending lawsuits against the homeowners association; and
(ii)
Any pending claims, covenant violations actions, or notices of default against
the lot; and
(5)
A copy of:
(i)
The articles of incorporation, the declaration, and all recorded covenants and
restrictions of the primary development, and of other related developments to
the extent reasonably available, to which the purchaser shall become obligated
on becoming an owner of the lot, including a statement that these obligations
are enforceable against an owner's tenants, if applicable; and
(ii)
The bylaws and rules of the primary development, and of other related
developments to the extent reasonably available, to which the purchaser shall
become obligated on becoming an owner of the lot, including a statement that
these obligations are enforceable against an owner and the owner's tenants, if
applicable.
(c)(1)
Within 30 calendar days of any resale transfer of a lot within a development,
the transferor shall notify the homeowners association for the primary
development of the transfer.
(2)
The notification shall include, to the extent reasonably available, the name and address of the transferee, the name and
forwarding address of the transferor, the date of transfer, the name and address
of any mortgagee, and the proportionate amount of any outstanding homeowners
association fee or assessment assumed by each of the parties to the
transaction.
(d)
The requirements of subsection (b) of this section shall be deemed to have been
fulfilled if the information required to be disclosed is provided to the
purchaser in writing in a clear and concise manner. The disclosures may be summarized or
produced in any collection of documents, including plats, the declaration, or
the organizational documents of the homeowners association, provided those
documents effectively convey the required information to the
purchaser.
(e)
In satisfying the requirements of subsection (b) of this section, the vendor
shall be entitled to rely upon the disclosures contained in the depository after
June 30, 1989.
(f)
The provisions of subsections (a), (b), (d), and (e) of this section do not apply to the sale of a lot in an action to
foreclose a mortgage or deed of trust.
§ 11B-107. Nonresidential lot; initial
sale (text removed)
§ 11B-108. Rescission of
contract
(a) A person who enters into a contract
as a purchaser but who has not received all of the disclosures required by
§ 11B-105,
§ 11B-106,
or § 11B-107
of this title, as applicable, shall, prior to settlement, be entitled to cancel
the contract and to the immediate return of deposits made on account of the
contract.
(b)(1)
Any purchaser who has not received all of the disclosures required under
§ 11B-105
or § 11B-106
of this title, as applicable, 5 calendar days or more before the contract was
entered into, within 5 calendar days following receipt by the purchaser of the
disclosures required by § 11B-105(a) and
(b)
or § 11B-106(a) and
(b)
of this title, as applicable, may cancel in writing the contract without stating
a reason and without liability on the part of the purchaser.
(2)
The purchaser shall be entitled to the return of any deposits made on account of the contract, except that the vendor
shall be entitled to retain the cost of reproducing the information specified in
§ 11B-105(b),
§ 11B-106(b),
or § 11B-107(b)
of this title, as applicable, or $100, whichever amount is less, if the
disclosures are not returned to the vendor at the time the contract is
cancelled.
(c)
Any purchaser may within 3 calendar days following receipt by the purchaser of a
change in mandatory fees and payments exceeding 10 percent of the amount
previously stated to exist or any other substantial and material amendment to
the disclosures required by § 11B-105
or § 11B-106
of this title, as applicable, which adversely affects the purchaser, cancel in
writing the contract without stating a reason and without liability on the part
of the purchaser, and the purchaser shall be entitled to the return of deposits
made on account of the contract.
(d)
The rights of a purchaser under this section may not be waived in the contract
and any attempted waiver is void.
However, if any purchaser proceeds to settlement, the purchaser's right
to cancel under this section is terminated.
(e)
In satisfying the requirements of subsection (b) of this section, the vendor
shall be entitled to rely upon the disclosures contained in the depository after
June 30, 1989.
(f)
The provisions of this section do not apply to a sale of a lot in an action to
foreclose a mortgage or deed of trust.
§ 11B-109. Seller's false statements or
omissions
(a) Any vendor, required under
§ 11B-105,
§ 11B-106,
or § 11B-107
of this title to disclose information to a purchaser, who makes an untrue
statement of a material fact, or who omits to state a material fact necessary in
order to make the statements made, in the light of the circumstances under which
they were made, not misleading, shall be liable for damages proximately caused
by the untrue statement or omission to the person purchasing a lot from that
vendor. However, an action may not
be maintained to enforce a liability created under this section unless brought
within one year after the facts constituting the cause of action have or should
have been discovered.
(b)
A vendor may not be liable under subsection (a) if the vendor had, after
reasonable investigation, reasonable grounds to believe, and did believe, at the
time the information required to be disclosed under § 11B-105,
§ 11B-106,
or § 11B-107
of this title was provided to the purchaser, that the statements were true and
that there was no omission to state a material fact necessary to make the statements not
misleading.
(c)
The provisions of this section do not apply to trustees, mortgagees, assignees
of mortgagees or other persons selling a lot in an action to foreclose a
mortgage or deed of trust.
§ 11B-110. Notice of defect; applicable
warranties
(a)(1) In addition to the implied
warranties on private dwelling units under
§ 10-203
of this article and the express warranties on private dwelling units under
§ 10-202
of this article, there shall be an implied warranty to the homeowners
association that the improvements to common areas are:
(i)
Free from faulty materials;
(ii)
Constructed in accordance with sound engineering standards; and
(iii)
Constructed in a workmanlike manner.
(2)(i)
Subject to the provisions of subparagraph (ii) of this paragraph, if the
improvements to the common areas were constructed by the vendor, its agents,
servants, employees, contractors, or subcontractors, then the warranty on
improvements shall be from the vendor of the lots within the
development.
(ii)
If the improvements to the common areas were constructed on the common areas
prior to its conveyance to the homeowners association, then the warranty on
improvements shall be from the grantor of the common areas.
(3)
The warranty on improvements to the common areas begins with the first transfer of title to a lot to a member of the
public by the vendor of the lot. The warranty on improvements to common areas
not completed at that time shall begin with the completion of the improvement or
with its availability for use by lot owners, whichever occurs later. The warranty extends for a period of one
year.
(4)
Suit for enforcement of the warranty on improvements to the common areas may be
brought by either the homeowners association or by an individual lot
owner.
(b)
Notice of a defect shall be given within the warranty period and suit for
enforcement of the warranty shall be brought within one year of the expiration
of the warranty period.
(c)
Warranties shall not apply to defects caused through abuse or failure to perform
maintenance by a lot owner or the homeowners association.
§ 11B-111. Association
meetings
Except
as provided in this title, and notwithstanding anything contained in any of the
documents of the homeowners association:
(1)
Subject to the provisions of paragraph (4) of this section, all meetings of the
homeowners association, including meetings of the board of directors or other
governing body of the homeowners association or a committee of the homeowners
association, shall be open to all members of the homeowners association or their
agents;
(2)
All members of the homeowners association shall be given reasonable notice of
all regularly scheduled open meetings of the homeowners association;
(3)(i)
This paragraph does not apply to any meeting of a governing body that occurs at
any time before the lot owners, other than the developer, have a majority of
votes in the homeowners association, as provided in the declaration;
(ii)
Subject to subparagraph (iii) of this paragraph and to reasonable rules adopted
by a governing body, a governing body shall provide a designated period of time during a meeting to allow lot owners an
opportunity to comment on any matter relating to the homeowners
association;
(iii)
During a meeting at which the agenda is limited to specific topics or at a
special meeting, the lot owners' comments may be limited to the topics listed on
the meeting agenda; and
(iv)
The governing body shall convene at least one meeting each year at which the
agenda is open to any matter relating to the homeowners association;
(4)
A meeting of the board of directors or other governing body of the homeowners
association or a committee of the homeowners association may be held in closed
session only for the following purposes:
(i)
Discussion of matters pertaining to employees and personnel;
(ii)
Protection of the privacy or reputation of individuals in matters not related to
the homeowners association's business;
(iii)
Consultation with legal counsel;
(iv)
Consultation with staff personnel, consultants, attorneys, or other persons in
connection with pending or potential litigation;
(v)
Investigative proceedings concerning possible or actual criminal
misconduct;
(vi)
Consideration of the terms or conditions of a business transaction in the
negotiation stage if the disclosure could adversely affect the economic interests of the homeowners
association;
(vii)
Compliance with a specific constitutional, statutory, or judicially imposed
requirement protecting particular proceedings or matters from public
disclosure; or
(viii)
On an individually recorded affirmative vote of two-thirds of the board or
committee members present, some other exceptional reason so compelling as to
override the general public policy in favor of open meetings; and
(5)
If a meeting is held in closed session under paragraph (4) of this
section:
(i)
An action may not be taken and a matter may not be discussed if it is not
permitted by paragraph (4) of this section; and
(ii)
A statement of the time, place, and purpose of a closed meeting, the record of
the vote of each board or committee member by which the meeting was closed, and
the authority under this section for closing a meeting shall be included in the
minutes of the next meeting of the board of directors or the committee of the
homeowners association.
§ 11B-111.1. Using residence for day
care
(a)(1) In this section, the following
words have the meanings indicated.
(2)
"Day care provider" means the adult who has primary responsibility for the
operation of a family day care home.
(3)
"Family day care home" means a unit registered under Title 5, Subtitle 5 of the
Family Law Article.
(4)
"No-impact home-based business" means a business that:
(i)
Is consistent with the residential character of the dwelling unit;
(ii)
Is subordinate to the use of the dwelling unit for residential purposes and
requires no external modifications that detract from the residential appearance
of the dwelling unit;
(iii)
Uses no equipment or process that creates noise, vibration, glare, fumes, odors,
or electrical or electronic interference detectable by neighbors or that causes
an increase of common expenses that can be solely and directly attributable to a
no-impact home-based business;
and
(iv)
Does not involve use, storage, or disposal of any grouping or classification of materials that the United
States Secretary of Transportation or the State or any local governing body
designates as a hazardous material.
(b)(1)
The provisions of this section relating to family day care homes do not apply to
a homeowners association that is limited to housing for older persons, as
defined under the federal Fair Housing Act. [FN1]
(2)
The provisions of this section relating to no-impact home-based businesses do
not apply to a homeowners association that has adopted, prior to July 1, 1999,
procedures in accordance with its covenants, declaration, or bylaws for the
prohibition or regulation of no-impact home-based businesses.
(c)(1)
Subject to the provisions of subsections (d) and (e)(1) of this section, a
recorded covenant or restriction, a provision in a declaration, or a provision
of the bylaws or rules of a homeowners association that prohibits or restricts
commercial or business activity in general, but does not expressly apply to
family day care homes or no-impact home-based businesses, may not be construed
to prohibit or restrict:
(i)
The establishment and operation of family day care homes or no-impact home-based businesses; or
(ii)
Use of the roads, sidewalks, and other common areas of the homeowners
association by users of the family day care home.
(2)
Subject to the provisions of subsections (d) and (e)(1) of this section, the
operation of a family day care home or no-impact home-based business shall
be:
(i)
Considered a residential activity;
and
(ii)
A permitted activity.
(d)(1)(i)
Except as provided in subparagraph (ii) of this paragraph and subject to the
provisions of paragraphs (2) and (3) of this subsection, a homeowners
association may include in its declaration, bylaws, or recorded covenants and
restrictions a provision expressly prohibiting the use of a residence as a
family day care home or no-impact home-based business.
