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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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amendment.
*hb1132*
HOUSE BILL 1132
N1 6lr3232
By: Delegates Terrasa, Lehman, Ruth, and Ziegler
Introduced and read first time: February 11, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2026
CHAPTER ______
AN ACT concerning 1
Condominiums and Homeowners Associations – Resale Contracts – Notice 2
Requirements 3
(Keeping Affordable Housing Affordable Act) 4
FOR the purpose of altering the deadline by which certain required notices in certain resale 5
contracts must be provided to a purchaser; requiring the seller in certain resale 6
contracts to provide notice of certain changes in mand atory fees and payments and 7
other required disclosures; altering certain fees a council of unit owners or a 8
homeowners association or its agent may charge for providing certain disclosures; 9
altering the time period within which a purchaser may cancel a certain contract; and 10
generally relating to resale contract notice requirements. 11
BY repealing and reenacting, with amendments, 12
Article – Real Property 13
Section 11–135(a) through and (c), and 11B–106(a) and (c), and 11B–108(b)(1) 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Real Property 18
Section 11–135(b) and 11B–108(b)(1) 19
Annotated Code of Maryland 20
(2023 Replacement Volume and 2025 Supplement) 21
2 HOUSE BILL 1132
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Real Property 3
11–135. 4
(a) Except as provided in subsection (b) of this section, a contract for the resale of 5
a unit by a unit owner other than a developer is not enforceable unless the contract of sale 6
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 7
section, and the unit owner furnishes to the purchaser [not later than 15 days prior to 8
closing] WITHIN 20 CALENDAR DAYS AFTER ENTERING INTO THE CONTRACT: 9
(1) A copy of the declaration (other than the plats); 10
(2) The bylaws; 11
(3) The rules or regulations of the condominium; 12
(4) A certificate containing: 13
(i) A statement disclosing the effect on the propose d conveyance of 14
any right of first refusal or other restraint on the free alienability of the unit other than 15
any restraint created by the unit owner; 16
(ii) A statement setting forth the amount of the common expense 17
assessment and any unpaid common expense or special assessment adopted by the council 18
of unit owners that is due and payable from the selling unit owner; 19
(iii) A statement of any other fees payable by the unit owners to the 20
council of unit owners; 21
(iv) A statement of any capital expenditures approved by the council 22
of unit owners planned at the time of the conveyance which are not reflected in the current 23
operating budget disclosed under item (vi) of this item; 24
(v) The most recent regularly prepared balance sheet and income 25
expense statement, if any, of the condominium; 26
(vi) The current operating budget of the condominium including the 27
current reserve study report or a summary of the report, a statement of the status and 28
amount of any reserve or replacement fund, or a statement that there is no reserve fund; 29
(vii) A statement of any unsatisfied judgments or pending lawsuits to 30
which the council of unit owners is a party, excluding assessment collection suits; 31
HOUSE BILL 1132 3
(viii) A statement generally describing any insurance policies provided 1
for the benefit of unit owners, a notice that copies of the policies are available for inspection, 2
stating the location at which the copies are available, and a notice that the terms of the 3
policy prevail over the description; 4
(ix) A statement as to whether the council of unit owners has actual 5
knowledge of any violation of the health or building codes with respect to the common 6
elements of the condominium; 7
(x) A description of any recreational or other facilities which are to 8
be used by the unit owners or maintained by them or the council of unit owners, and a 9
statement as to whether or not they are to be a part of the common elements; and 10
(xi) 1. A statement as to whether the council of unit owners has 11
entered into any agreement t hat settles or releases the council of unit owners’ claims 12
related to common element warranties under § 11–131 of this title; and 13
2. A statement as to whether the board of directors has 14
disclosed to the council of unit owners in accordance with § 11 –134.1(c)(2) of this title, the 15
board’s intention to enter into an agreement for the purpose of settling a disputed common 16
element warranty claim under § 11–131 of this title; 17
(5) A statement by the unit owner as to whether the unit owner has 18
knowledge: 19
(i) That any alteration to the unit or to the limited common 20
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 21
regulations; 22
(ii) Of any violation of the health or building codes with respect to 23
the unit or the limited common elements assigned to the unit; 24
(iii) That the unit is subject to an extended lease under § 11 –137 of 25
this title or under local law, and if so, a copy of the lease must be provided; and 26
(iv) Of the presence of asbestos in the unit, including a description of 27
the location of the asbestos, and whether abatement has been performed in the unit during 28
the occupancy of the owner; [and] 29
(6) A written notice of the unit owner’s responsibility for the council of unit 30
owners’ property insurance deductible and the amount of the deductible; AND 31
(7) A WRITTEN NOTICE OF AN Y CHANGE IN MANDATOR Y FEES OR 32
PAYMENTS EXCEEDING 10% OF THE AMOUNT PREVIOUSLY STATED TO EXIST OR ANY 33
OTHER SUBSTANTIAL AND MATERIAL CHANGE TO A DISCLOSURE REQUIRED UNDER 34
THIS SUBSECTION AFTER IT BECOMES KNOWN TO THE SELLER. 35
4 HOUSE BILL 1132
(b) A contract for the resale by a unit owner other than a developer of a unit in a 1
condominium containing less than 7 units is not enforceable unless the contract of sale 2
contains in conspicuous ty pe a notice in the form specified in subsection (g)(2) of this 3
section, and the unit owner furnishes to the purchaser [not later than 15 days prior to 4
closing] WITHIN 20 CALENDAR DAYS AFTER ENTERING INTO THE CONTRACT: 5
(1) A copy of the declaration (other than the plats); 6
(2) The bylaws; 7
(3) The rules and regulations of the condominium; 8
(4) A statement by the unit owner of the unit owner’s expenses during the 9
preceding 12 months relating to the common elements; and 10
(5) A written notice of the unit owner’s responsibility for the council of unit 11
owners’ property insurance deductible and the amount of the deductible. 12
(c) (1) (I) [Except as provided in paragraph (4) of this subsection, the] THE 13
council of unit owners, within [20] 10 days after a written request by a unit owner and 14
receipt of a reasonable fee therefor, not to exceed the cost to the council of unit owners, if 15
any, up to a maximum of [$250] $100, shall furnish a certificate containing the information 16
necessary to enable the unit owner to comply with subsection (a) of this section. 17
(II) A unit owner providing a certificate under subsection (a) of this 18
section is not liable to the purchaser for any erroneous information provided by the council 19
of unit owners and included in the certificate. 20
(2) In addition to the fee under paragraph (1) of this subsection, the council 21
of unit owners [is entitled to a] MAY CHARGE ONLY THE FOLLOWING FEES: 22
(I) A reasonable fee not to exceed $100 for an inspection of the unit 23
owner’s unit, if required; 24
(II) A REASONABLE FEE NOT TO EXCEED $50 FOR DELIVERY OF 25
THE CERTIFICATE WITHIN 5 DAYS AFTER THE REQUEST FOR THE CERTIFICATE; OR 26
(III) A REASONABLE FEE NOT TO EXCEED $50 FOR A FINANCIAL 27
UPDATE ORDERED BY A SETTLEMENT AGENT. 28
[(3) In addition to the fees under paragraphs (1) and (2) of this subsection, 29
the council of unit owners is entitled to a reasonable fee: 30
(i) Not to exceed $50 for delivery of the certificate within 14 days 31
after the request for the certificate; and 32
HOUSE BILL 1132 5
(ii) Not to exceed $100 for delivery of the certificate within 7 days 1
after the request for the certificate. 2
(4) (i) The Department of Housing and Community Development shall 3
adjust the maximum fee authorized under paragraph (1) of this subsection every 2 yea rs, 4
beginning October 1, 2018, to reflect any aggregate increase in the Consumer Price Index 5
for All Urban Consumers (CPI–U) for the Washington Metropolitan Area, or any successor 6
index, for the previous 2 years. 7
(ii) The Department of Housing and Community Development shall 8
maintain on its website a list of the maximum fees authorized under paragraph (1) of this 9
subsection as adjusted every 2 years in accordance with subparagraph (i) of this 10
paragraph.] 11
[(5)] (3) With respect to the remaining information that the unit owner is 12
required to disclose under subsection (a) of this section that is not provided by the council 13
of unit owners and included in the certificate, a unit owner: 14
(i) Except as provided in item (ii) of this paragraph, is liable to the 15
purchaser under this section for damages proximately caused by: 16
1. An untrue statement about a material fact; and 17
2. An omission of a material fact that is necessary to make 18
the statements made not misleading, in light of the circumstances u nder which the 19
statements were made; and 20
(ii) Is not liable to the purchaser under this section if the owner had, 21
after reasonable investigation, reasonable grounds to believe, and did believe, at the time 22
the information was provided to the purchaser, that the statements were true and that 23
there was no omission to state a material fact necessary to make the statements made not 24
misleading, in light of the circumstances under which the statements were made. 25
11B–106. 26
(a) A contract for the resale of a lot within a development, or for the initial sale of 27
a lot within a development containing 12 or fewer lots, to a member of the public who 28
intends to occupy or rent the lot for residential purposes, is not enforceable by the vendor 29
unless: 30
(1) The purchaser is given, on or before entering into the contract for the 31
sale of [such] THE lot, or within 20 calendar days of entering into the contract NOT LATER 32
THAN 15 DAYS BEFORE CLOSING, the disclosures set forth in subsection (b) of this section; 33
6 HOUSE BILL 1132
(2) The purchaser is given any changes in mandatory fees and payments 1
exceeding 10 percent of the amount previously stated to exist and any other substantial 2
and material amendment to the disclosures after they become known to the vendor; and 3
(3) The contract of sale contains a notice in conspicuous type, which shall 4
include bold and underscored type, in a form substantially the same as the following: 5
“This sale is subject to the requirements of the Maryland Homeowners Association 6
Act (the “Act”). The Act requ ires that the seller disclose to you at or before the time the 7
contract is entered into, or within 20 calendar days of entering into the contract NOT LATER 8
THAN 15 DAYS BEFORE CLOSING , certain information concerning the development in 9
which the lot you are purchasing is located. The content of the information to be disclosed 10
is set forth in § 11B–106(b) of the Act (the “MHAA information”) as follows: 11
(The notice shall include at this point the text of § 11B–106(b) in its entirety). 12
If you have not received all of the MHAA information [5] 7 5 calendar days or more 13
before entering into the contract, you have [5] 7 5 calendar days to cancel this contract 14
after receiving all of the MHAA information. You must cancel the contract in writing, but 15
you do not hav e to state a reason. The seller must also provide you with notice of any 16
changes in mandatory fees exceeding 10% of the amount previously stated to exist and 17
copies of any other substantial and material amendment to the information provided to 18
you. You have 3 calendar days to cancel this contract after receiving notice of any changes 19
in mandatory fees, or copies of any other substantial and material amendment to the 20
MHAA information which adversely affects you. If you do cancel the contract you will be 21
entitled to a refund of any deposit you made on account of the contract. However, unless 22
you return the MHAA information to the seller when you cancel the contract, the seller 23
may keep out of your deposit the cost of reproducing the MHAA information, or $100, 24
whichever amount is less. 25
By purchasing a lot within this development, you will automatically be subject to 26
various rights, responsibilities, and obligations, including the obligation to pay certain 27
assessments to the homeowners association within the de velopment. The lot you are 28
purchasing may have restrictions on: 29
(1) Architectural changes, design, color, landscaping, or appearance; 30
(2) Occupancy density; 31
(3) Kind, number, or use of vehicles; 32
(4) Renting, leasing, mortgaging, or conveying property; 33
(5) Commercial activity; or 34
(6) Other matters. 35
HOUSE BILL 1132 7
You should review the MHAA information carefully to ascertain your rights, 1
responsibilities, and obligations within the development.” 2
(c) (1) [Except as provided in paragraph (4) of this subsection, within 20 ] 3
WITHIN 10 days after a written request by a lot owner other than a declarant and receipt 4
of a reasonable fee, not to exceed the cost to the homeowners association, if any, up to a 5
maximum of [$250] $100, the homeowners association, t he management agent of the 6
homeowners association, or any other authorized officer or agent of the homeowners 7
association, shall provide the information listed under subsection (b) of this section. 8
(2) In addition to the fee under paragraph (1) of this subsection, the 9
homeowners association [is entitled to a] MAY CHARGE ONLY THE FOLLOWING FEES: 10
(I) A reasonable fee not to exceed $50 for an inspection of the lot 11
owner’s lot if the inspection is required by the governing documents of the homeowners 12
association; 13
(II) A REASONABLE FEE NOT TO EXCEED $50 FOR DELIVERY OF 14
THE CERTIFICATE DISCLOSURE INFORMATION WITHIN 5 DAYS AFTER THE REQUEST 15
FOR THE CERTIFICATE DISCLOSURE INFORMATION; AND 16
(III) A REASONABLE FEE NOT TO EXCEED $50 FOR A FINANCIAL 17
UPDATE ORDERED BY A SETTLEMENT AGENT. 18
[(3) In addition to the fees under paragraphs (1) and (2) of this subsection, 19
the homeowners association is entitled to a reasonable fee: 20
(i) Not to exceed $50 for delivery of the information within 14 days 21
after the request for the information; and 22
(ii) Not to exceed $100 for delivery of the information within 7 days 23
after the request for the information. 24
(4) (i) The Department of Housing and Community Development shall 25
adjust the maximum fee authorized under p aragraph (1) of this subsection every 2 years, 26
beginning on October 1, 2018, to reflect any aggregate increase in the Consumer Price Index 27
for All Urban Consumers (CPI–U) for the Washington Metropolitan Area, or any successor 28
index, for the previous 2 years. 29
(ii) The Department of Housing and Community Development shall 30
maintain on its website a list of the maximum fees authorized under paragraph (1) of this 31
subsection as adjusted every 2 years in accordance with subparagraph (i) of this 32
paragraph.] 33
11B–108. 34
8 HOUSE BILL 1132
(b) (1) Any purchaser who has not received all of the disclosures required 1
under § 11B –105 or § 11B –106 of this title, as applicable, [5] 7 5 calendar days or more 2
before the contract was entered into, within [5] 7 5 calendar days following receipt by the 3
purchaser of the disclosures required by § 11B –105(a) and (b) or § 11B –106(a) and (b) of 4
this title, as applicable, may cancel in writing the contract without stating a reason and 5
without liability on the part of the purchaser. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2026. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.