
If you’re considering moving to Maryland and buying a condo, understanding the Maryland Condominium Act is essential. This legislation not only requires sellers to provide a detailed Resale Package, including important documents, but it also gives you a 15-day rescission period to evaluate those materials.
Knowing your rights and responsibilities can significantly impact your investment and living experience. How can these regulations affect everything from maintenance costs to your association’s governance? Let’s explore what you need to keep in mind before making that commitment.
5 Highlights of the Maryland Condominium Act
- To ensure informed decision-making, buyers must receive a Resale Package, including essential documents, at least 15 days before closing.
- A 15-day rescission period allows buyers to review the Resale Package and cancel the purchase if necessary.
- The Resale Package includes the declaration, bylaws, and financial statements, which are crucial for understanding the condo association’s operations.
- Buyers should be aware of their maintenance responsibilities, which include maintaining the interiors of their units and the shared common areas managed by the association.
- Reviewing financial statements helps buyers anticipate future costs, such as condo fees and potential special assessments for repairs.
What Is the Maryland Condominium Act?
The Maryland Condominium Act, established under MD Code, Real Property §§ 11-101 to 11-143, is the legal foundation for condominiums in the state.
This Act governs condominium associations’ formation, management, and operation, guaranteeing compliance with established rules.
A key aspect of the Maryland Condominium Act is that the seller must provide a Resale Package with essential governing documents, such as the declaration and bylaws.
Additionally, the Act mandates that the purchaser has 15 days to review the Resale Package and cancel the contract if they wish.
Understanding these provisions can help protect your investment and navigate potential disputes.
Why It Matters for Anyone Buying a Condo
Understanding the Maryland Condominium Act is essential for anyone buying a condo. The Act requires sellers to provide key disclosures that protect buyers’ interests.
After receiving the Resale Disclosure Certificate, you’ll benefit from a 15-day rescission period, giving you time to review important documents.
This law also clarifies maintenance responsibilities, outlines fees and assessment rules, and sets standards for how the condo board should manage shared amenities, ensuring you know what to expect as a homeowner.
Requires Essential Disclosures by Sellers
Knowing about the required disclosures can significantly impact your experience and investment when buying a condo for the first time.
Under Maryland law, sellers must provide a Resale Package with the declaration, bylaws, rules and regulations, various financial details, and other relevant information, ensuring you have indispensable information about the condominium. Section 11-135 details the required disclosures and states that the seller must provide the information at least 15 days before closing.
Be aware that incomplete documentation, undisclosed amendments, or other failures to comply with the Act can lead to misunderstandings and give buyers grounds for legal recourse.
Implements a 15-Day Rescission Period

After receiving the Resale Package, buyers have a 15-day rescission period, allowing them to reconsider their purchase. Before 2013, this period was seven days.
This cooling-off period starts either when the buyer receives the complete Resale Package or after signing the purchase contract, whichever is later. However, if you proceed to closing, the right to rescind is void.
If any of the information in the Resale Package changes between signing and closing, there’s an additional rescission period. Upon receiving information about the change, the buyer has five days to rescind their purchase.
In either case, the buyer may rescind their purchase without giving a reason and still receive their earnest money deposit back.
For buyers, this rescission period is a crucial consumer protection measure, giving you time to review the information and assess any potential issues with the condominium association.
Always verify you receive the Resale Package at least 15 days before closing to take full advantage of this critical rescission period, safeguarding your investment and facilitating informed decision-making.
Establishes Code of Conduct for Managing Board and Shared Amenities
Once you’ve navigated the 15-day rescission period, it’s important to contemplate the established code of conduct for the condominium association’s managing board and shared amenities.
This code outlines how the board of directors should operate, ensuring fair and transparent management. It governs interactions between residents and the board, promoting accountability while managing shared amenities like pools and fitness centers.
By adhering to this code, the homeowners association helps mitigate disputes over usage, setting clear guidelines for behavior, maintenance responsibilities, and hours of operation.
Clarifies Responsibilities for Maintenance and Repairs
The Maryland Condominium Act divides maintenance responsibilities between individual unit owners and the condo association.
You’ll be responsible for your unit’s interior while all owners share the upkeep of common areas. Reviewing the governing documents to understand specific obligations and any associated costs is vital, as these can significantly affect your financial health.
Additionally, special assessments may arise for unexpected repairs in common areas, so evaluating the condo association’s financial health is critical. This knowledge will help you navigate potential disputes and guarantee you’re prepared for the responsibilities of condo ownership.
Outlines Rules for Condo Fees and Special Assessments
In Maryland, homeowners associations must establish a budget detailing expected expenses, resulting in monthly condo fees that cover maintenance, utilities, and amenities.
Special assessments may be levied for unexpected costs or major repairs. Owners are responsible for these in addition to their regular fees.
The Maryland Condominium Act requires associations to provide written notice of proposed special assessments, ensuring transparency.
Review the financial statements in the Resale Package carefully to make informed decisions. They reveal the association’s reserve funds and history of special assessments.
Frequently Asked Questions
What Are the New Rules of the Maryland Condominium Act?
Among other amendments to the Act, the new 2024 rules of the Maryland Condominium Act require sellers to disclose any known asbestos presence and related actions. The Act has been amended multiple times throughout the years, so investigate any recent changes before your purchase.
What Is Section 11-109.4 of the Maryland Condominium Act?
Section 11-109.4 requires condominium associations to maintain a reserve fund for repairs and replacements. It mandates a reserve study every five years, ensuring financial preparedness and transparency for you as a condominium owner.
What Is Section 11-135 of the Maryland Condominium Act?
Section 11-135 requires sellers to provide you with a Resale Package at least 15 days before closing. This package includes essential documents, and you can review and cancel the contract within 15 days if necessary.
What Is Section 11-111 of the Maryland Condominium Act?
Section 11-111 outlines how condominium associations operate and under what circumstances rules may be proposed and enacted, such as notice periods and voting timelines.
Understanding the Maryland Condominium Act
The Maryland Condominium Act guarantees you receive necessary disclosures, allows time to review important documents, and clarifies maintenance responsibilities and financial obligations. By familiarizing yourself with these regulations, you can make informed decisions, avoid potential pitfalls, and protect your investment in a shared living environment like rowhouses or condos. Always take the time to review the Resale Package and ask questions if something isn’t clear before proceeding with your purchase.