§ 11-126. Disclosure requirements
West's Annotated Code of MarylandReal PropertyEffective: October 1, 2011
Effective: October 1, 2011
MD Code, Real Property, § 11-126
§ 11-126. Disclosure requirements
(a) A contract for the initial sale of a unit to a member of the public is not enforceable by the vendor unless:
(b) The public offering statement required by subsection (a) of this section shall be sufficient for the purposes of this section if it contains at least the following:
(4) A copy of any proposed management contract, insurance contract, employment contract, or other contract affecting the use of, maintenance of, or access to all or part of the condominium to which it is anticipated the unit owners or the council of unit owners will be a party, and a statement of the right of the council of unit owners to terminate contracts entered into during the developer control period under § 11-133 of this title;
(ii) The number of unsatisfied liens currently recorded against unit owners under the Maryland Contract Lien Act;1
(13) In the case of a condominium containing buildings substantially completed more than 5 years prior to the filing of the application for registration under § 11-127 of this title, a statement of the physical condition and state of repair of the major structural, mechanical, electrical, and plumbing components of the improvements, to the extent reasonably ascertainable, and estimated costs of repairs for which a present need is disclosed in the statement and a statement of repairs which the vendor intends to make. The vendor is entitled to rely on the reports of architects or engineers authorized to practice their profession in this State;
(c) A person may not advertise or represent that the Secretary of State has approved or recommended the condominium, the public offering statement, or any of the documents contained in the application for registration.
(d)(1) Following execution of a contract of sale by a purchaser, the vendor may not amend any of the material required to be furnished by subsection (a) of this section without the approval of the purchaser if the amendment would affect materially the rights of the purchaser.
(e)(1) Any purchaser may at any time (i) within 15 days following receipt of all of the information required under subsection (b) of this section or the signing of the contract, whichever is later; and (ii) within 5 days following receipt of the information required under subsection (d) of this section, rescind in writing the contract of sale without stating any reason and without any liability on his part, and he shall be entitled to the return of any deposits made on account of the contract.
(f) Any vendor who, in disclosing the information required under subsections (a) and (b) of this section, makes any untrue statement of a material fact, or omits to state a material fact necessary in order to make the statements made, in the light of circumstances under which they were made, not misleading, shall be liable to any person purchasing a unit from the vendor for those damages proximately caused by the vendor's untrue statement or omission. However, an action may not be maintained to enforce any liability created under this section unless brought within 1 year after the facts constituting the cause of action are or should have been discovered.
(g) The rights of a purchaser under this section may not be waived in the contract of sale and any attempted waiver is void. However, if any purchaser proceeds to closing, his right under this section to rescind is terminated.
(h) This section does not apply to the sale of any unit which is to be occupied and used for nonresidential purposes.
(i) This section applies to the sale of any unit offered for sale in the State without regard to the location of the condominium.
Added as Real Property § 11-124 by Acts 1976, c. 348, § 3, eff. July 1, 1976. Amended by Acts 1980, c. 681, § 1, eff. July 1, 1980. Renumbered as Real Property § 11-126 and amended by Acts 1981, c. 246, § 1, eff. July 1, 2981. Amended by Acts 1982, c. 836, § 3; Acts 1984, c. 525; Acts 1985, c. 551; Acts 1986, c. 5, § 1; Acts 1986, c. 357; Acts 1986, c. 360; Acts 1989, c. 5, § 1; Acts 1989, c. 692; Acts 1990, c. 139; Acts 1991, c. 131; Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 1999, c. 66, § 1, eff. Oct. 1, 1999; Acts 2009, c. 522, § 1, eff. June 1, 2009; Acts 2009, c. 523, § 1, eff. June 1, 2009; Acts 2010, c. 72, § 1, eff. April 13, 2010; Acts 2011, c. 156, § 1, eff. Oct. 1, 2011.
HISTORICAL AND STATUTORY NOTES
Acts 2009, c. 522, § 2, and Acts 2009, c. 523, § 2, provide:
“SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General Assembly that this Act:
“(a) Overturn the Court of Appeals ruling in Diane Anderson, et al. v. Council of Unit Owners of The Gables on Tuckerman Condominium, et al., 404 Md. 560 (2008);
“(b) Place an affirmative duty on the council of unit owners of a condominium association to:
“(1) Repair damage or destruction to the condominium that originated in a unit; and
“(2) Purchase property insurance that reflects this duty; and
“(c) Make the cost of the property insurance purchased by the council of unit owners of a condominium association under this Act a common expense, except that in the case of damage or destruction originating from a unit, the payment of the property insurance deductible shall be the responsibility, up to the maximum amount provided under § 11-114(g) of the Real Property Article, of the owner of the unit where the cause of the damage or destruction originated.”
Real Property, § 14-201 et seq.
MD Code, Real Property, § 11-126, MD REAL PROP § 11-126
Current through all legislation from the 2019 Regular Session of the General Assembly.
|End of Document||© 2019 Thomson Reuters. No claim to original U.S. Government Works.|