Beginning on October 1, 2017, several new laws will go into effect in Maryland governing condominiums and homeowners associations ("HOA"). With so much of new residential real estate being developed as part of an HOA or a condominium regime, these new laws will affect many homeowners in Maryland.

HOA Resale Inspection Fee – Under this new bill, an HOA is now authorized to charge a fee of up to $50.00 to conduct an inspection in connection with the resale of a lot if the inspection is required by the HOA's governing documents. This new fee is in addition to any fees previously permitted by statute.

Amendments to Governing Documents (Condominium and HOA) – This new bill authorizes a condominium council of unit owners to amend the condominium bylaws upon the affirmative vote of at least 60% of the condominium unit owners in good standing, or by a lower percentage if required by the bylaws. The law also authorizes an HOA to amend its governing documents by the affirmative vote of at least 60% of the votes in the development by owners in "good standing", or by a lower percentage if permitted by the governing documents. For purposes of the law, "good standing" is defined as an owner not being more than 90 days in arrears in the payment of any assessment or charge due to the condominium or HOA.  (The bill does not apply to an HOA that issues bonds or other long-term debt secured in whole or in part by annual charges assessed in accordance with its governing documents or to a village or community association affiliated with the HOA.)

Notice of Sale of Common Elements and Common Areas – This new bill requires that the governing body of a condominium or HOA—or, if control has not yet transitioned from the developer to the unit owners or lot owners, the developer or declarant—give notice not less than 30 days before the sale, including a tax sale, of any common element or common area located on property that has been transferred to the condominium or HOA. The notice requirements may be satisfied by providing written notice to each unit owner or lot owner, or by posting a specified sign on the property to be sold and, if the condominium or HOA has a website, by providing notice on the website.

It is important for HOAs and condominium regimes, their governing bodies, and homeowners to be aware of and comply with these new laws, and to amend their governing documents as may be necessary.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.