Common Ownership Communities - Online Publication of Resale Disclosures

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1260*

HOUSE BILL 1260
N1, C1 6lr0635
HB 1221/25 – ENT
By: Delegate Feldmark
Introduced and read first time: February 12, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Common Ownership Communities – Online Publication of Resale Disclosures 2

FOR the purpose of requiring the governing body of a certain common ownership 3
community or the management agent of a homeowners association to ma intain 4
certain information about the common ownership community on its website in a 5
downloadable format and at no cost; altering the fees that certain common ownership 6
communities may charge for information relating to an individual unit or lot; and 7
generally relating to cooperative housing corporations, condominiums, and 8
homeowners associations. 9

BY repealing and reenacting, with amendments, 10
Article – Corporations and Associations 11
Section 5–6B–02 12
Annotated Code of Maryland 13
(2025 Replacement Volume) 14

BY repealing and reenacting, without amendments, 15
Article – Real Property 16
Section 11–135(a), (i), and (j) and 11B–106(b) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – Real Property 21
Section 11–135(c) and 11B–106(c) 22
Annotated Code of Maryland 23
(2023 Replacement Volume and 2025 Supplement) 24

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26

2 HOUSE BILL 1260

Article – Corporations and Associations 1

5–6B–02. 2

(a) A contract for the initial sale of a cooperative interest to a member of the public 3
for residential use is not enforceable against the initial purchaser unless: 4

(1) The initial purchaser is given at or before the time a contract is entered 5
into between the developer and the initial purchaser, a public offering statement containing 6
all of the information required by this section; and 7

(2) The contract contains, in conspicuous type, a notice of the initial 8
purchaser’s right to receive a public offering statement and the rescission rights provided 9
under this title. 10

(b) The public offering statement shall contain at least the following: 11

(1) The name and address of the developer; 12

(2) The following statements: 13

(i) A boundary survey or metes –and–bounds description of the 14
cooperative project together with a location survey of all improvements, including 15
recreational facilities, streets, and roads, and a drawing of any proposed improvements not 16
yet constructed within the cooperative project; 17

(ii) A statement of the form of ownership of all real and personal 18
property which is intended by the developer to be owned or leased by the cooperative 19
housing corporation; 20

(iii) A statement as to whether streets abutting th e cooperative 21
project are to be dedicated to public use or maintained by the cooperative housing 22
corporation; 23

(iv) A statement of the projected completion dates for proposed 24
improvements and, in the case of a contract for the initial sale of a cooperat ive interest in 25
a cooperative housing corporation which has not yet been formed, a statement of the 26
projected date of formation; 27

(v) A statement whether and under what conditions units may be 28
sublet or cooperative interests sold by members; 29

(vi) A description of the voting and other rights in the cooperative 30
housing corporation which attach to a cooperative interest as such rights are described in 31
§ 2–105 of this article; 32

HOUSE BILL 1260 3

(vii) An opinion, based on stated factual assumptions, as to whether 1
the m embers under current laws will be entitled to a pass –through of deductions from 2
federal and State income taxes for payments made by the cooperative housing corporation 3
for real estate taxes and interest on the property of the cooperative housing corporation; 4

(viii) A statement of the rights and responsibilities of members 5
regarding the blanket encumbrance and a statement as to the nature and extent of any 6
protection to the initial purchaser if the developer or cooperative housing corporation 7
defaults on such a blanket encumbrance after transfer or a statement that there is no such 8
protection; 9

(ix) A statement that a deposit made in connection with the purchase 10
of a cooperative interest will be held in an escrow account in the same manner as provided 11
in § 10 –301 of the Real Property Article in the case of sales of new, uncompleted single 12
family units; 13

(x) A statement of any fees required by the cooperative housing 14
corporation in connection with the transfer of membership or issuance of a proprietary 15
lease; 16

(xi) A statement of the common charges, known or anticipated, 17
however denominated, which may be levied against a member; 18

(xii) A statement of the cooperative interest associated with each unit 19
and the underlying debt responsibili ty associated with each unit on a pro rata basis, if 20
applicable; 21

(xiii) A statement as to whether the cooperative housing corporation 22
has or will obtain insurance coverage for casualty, property damage, and public liability 23
and if so, in what amounts; 24

(xiv) In the case of a cooperative housing corporation containing 25
buildings substantially completed more than 5 years prior to the date of the notice required 26
under § 5–6B–05 of this subtitle, a statement of the physical condition and state of repair 27
of the major structural, mechanical, electrical, and plumbing components of the 28
improvements, to the extent reasonably ascertainable, the estimated costs of repairs for 29
which a present need is disclosed in the statement, and a statement of repairs which the 30
developer intends to make. The developer is entitled to rely on the reports of architects or 31
engineers authorized to practice their profession in this State; and 32

(xv) A statement of all warranties and disclaimers being made to the 33
initial purchaser and to the cooperative housing corporation by the developer; 34

(3) Copies of the proposed or final: 35

(i) Contract of sale; 36

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(ii) Membership certificate; 1

(iii) Proprietary lease; 2

(iv) Articles of incorporation; 3

(v) Bylaws; 4

(vi) Rules, if any; 5

(vii) Floor plans; 6

(viii) Blanket encumbrances; 7

(ix) Member loan documents and any contract, note, mortgage given 8
to the developer, or other instrument to be entered into with the developer as part of the 9
initial sale; 10

(x) Any lease other than the proprietary lease to a third party of real 11
or personal property to which the cooperative housing corporation is a party; and 12

(xi) Any management contract, employment contract, or other 13
contract excluding contracts of insurance affecting the use, maintenance or access to all or 14
part of the real or personal property of the cooperative housing corporation; 15

(4) A copy of the projected annual operating budget for the cooperative 16
housing corporation including, where applicable: 17

(i) Insurance; 18

(ii) Administration; 19

(iii) Maintenance; 20

(iv) Utilities; 21

(v) General expenses; 22

(vi) Reserves; 23

(vii) Capital items; 24

(viii) Debt service; and 25

(ix) Taxes; and 26

HOUSE BILL 1260 5

(5) If applicable, a copy of the notice and materials required by § 5 –6B–05 1
of this subtitle, and a copy of the financial standards required to be established under § 2
5–6B–06(a)(2)(i) of this subtitle. 3

(c) Statements required in this section may be summariz ed or produced in a 4
collection of documents which effectively conveys the required information to the initial 5
purchaser. 6

(D) (1) THE GOVERNING BODY OF A COOPERATIVE HOUSIN G 7
CORPORATION SHALL MAINTAIN ON THE WEBSITE OF THE COOPERATIVE HOUSING 8
CORPORATION THE INFORMATION REQU IRED UNDER SUBSECTIO N (B) OF THIS 9
SECTION, NOT INCLUDING INFORMATION PERTAINING TO AN INDIVIDUAL UNIT. 10

(2) THE INFORMATION REQUI RED UNDER PARAGRAPH (1) OF THIS 11
SUBSECTION SHALL BE PROVIDED IN A DOWNLOADABLE FORMAT AND AT NO COST. 12

[(d)] (E) The requirements of this section do not apply to the sale of any 13
cooperative interest in a unit which is to be used and occupied for nonresidential purposes. 14

Article – Real Property 15

11–135. 16

(a) Except as provided in subsection (b) of this section, a contract for the resale of 17
a unit by a unit owner other than a developer is not enforceable unless the contract of sale 18
contains in conspicuous type a notice in the form specified in subsection (g)(1) of this 19
section, and the unit owner furnishes to the purchaser not later than 15 days prior to 20
closing: 21

(1) A copy of the declaration (other than the plats); 22

(2) The bylaws; 23

(3) The rules or regulations of the condominium; 24

(4) A certificate containing: 25

(i) A statement disclosing the effect on the proposed conveyance of 26
any right of first refusal or other restraint on the free alienability of the unit other than 27
any restraint created by the unit owner; 28

(ii) A statement setting forth the amount of the common expense 29
assessment and any unpaid common expense or special assessment adopted by the council 30
of unit owners that is due and payable from the selling unit owner; 31

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(iii) A statement of any other fees payable by the unit owners to the 1
council of unit owners; 2

(iv) A statement of any capital expenditures approved by the council 3
of unit owners planned at the time of the conveyance which are not reflected in the current 4
operating budget disclosed under item (vi) of this item; 5

(v) The most recent regularly prepared balance she et and income 6
expense statement, if any, of the condominium; 7

(vi) The current operating budget of the condominium including the 8
current reserve study report or a summary of the report, a statement of the status and 9
amount of any reserve or replacement fund, or a statement that there is no reserve fund; 10

(vii) A statement of any unsatisfied judgments or pending lawsuits to 11
which the council of unit owners is a party, excluding assessment collection suits; 12

(viii) A statement generally describing any insurance policies provided 13
for the benefit of unit owners, a notice that copies of the policies are available for inspection, 14
stating the location at which the copies are available, and a notice that the terms of the 15
policy prevail over the description; 16

(ix) A statement as to whether the council of unit owners has actual 17
knowledge of any violation of the health or building codes with respect to the common 18
elements of the condominium; 19

(x) A description of any recreational or other facilities which are to 20
be used by the unit owners or maintained by them or the council of unit owners, and a 21
statement as to whether or not they are to be a part of the common elements; and 22

(xi) 1. A statement as to whether the council of unit owners has 23
entered into any agreement that settles or releases the council of unit owners’ claims 24
related to common element warranties under § 11–131 of this title; and 25

2. A statement as to whether the board of directors has 26
disclosed to the council of unit owners in accord ance with § 11–134.1(c)(2) of this title, the 27
board’s intention to enter into an agreement for the purpose of settling a disputed common 28
element warranty claim under § 11–131 of this title; 29

(5) A statement by the unit owner as to whether the unit owner has 30
knowledge: 31

(i) That any alteration to the unit or to the limited common 32
elements assigned to the unit violates any provision of the declaration, bylaws, or rules and 33
regulations; 34

HOUSE BILL 1260 7

(ii) Of any violation of the health or building codes with respect to 1
the unit or the limited common elements assigned to the unit; 2

(iii) That the unit is subject to an extended lease under § 11 –137 of 3
this title or under local law, and if so, a copy of the lease must be provided; and 4

(iv) Of the presence of asbestos in the unit, including a description of 5
the location of the asbestos, and whether abatement has been performed in the unit during 6
the occupancy of the owner; and 7

(6) A written notice of the unit owner’s responsibility for the council of unit 8
owners’ property insurance deductible and the amount of the deductible. 9

(c) (1) (I) [Except as provided in paragraph (4) of this subsection, the 10
council of unit owners, within 20 days after a written request by a unit owner and receipt 11
of a reasonable fee therefor, not to exceed the cost to the council of unit owners, if any, up 12
to a maximum of $250, shall furnish a certificate containing the information necessary to 13
enable the unit owner to comply with subsection (a) of this section. A unit owner providing 14
a certificate under subsection (a) of this section is not liable to the purchaser for any 15
erroneous information provided by the council of unit owners and included in the 16
certificate] THE GOVERNING BODY OF A CONDOMINIUM SHALL MAINTAIN ON THE 17
CONDOMINIUM’S WEBSITE THE INFORM ATION REQUIRED UNDER SUBSECTION (A) 18
OF THIS SECTION , NOT INCLUDING INFORM ATION PERTAINING TO AN INDIVIDUAL 19
UNIT. 20

(II) THE GOVERNING BODY OF A CONDOMINIUM SHALL 21
PROVIDE THE INFORMAT ION DESCRIBED IN SUB PARAGRAPH (I) OF THIS 22
PARAGRAPH IN A DOWNLOADABLE FORMAT AND AT NO COST. 23

(2) (I) [In addition to the fee under paragraph (1) of this subsection, 24
the] THE council of unit owners is entitled to a reasonable fee not to exceed $100 for 25
INFORMATION PERTAINING TO AN INDIVIDUAL UNIT, INCLUDING an inspection of the 26
[unit owner’s] unit, if required. 27

(II) 1. THE GOVERNING BODY OF A CONDOMINIUM SHALL 28
PROVIDE THE INFORMAT ION PERTAINING TO AN INDIVIDUAL UNIT UNDE R 29
SUBPARAGRAPH (I) OF THIS PARAGRAPH WITHIN 14 DAYS AFTER THE REQUEST FOR 30
THE INFORMATION. 31

2. IF A UNIT OWNER REQUE STS EXPEDITED DELIVE RY 32
OF INFORMATION PERTA INING TO AN INDIVIDU AL UNIT, IN ADDITION TO THE FE E 33
DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COUNCIL OF UNIT 34
OWNERS IS ENTITLED T O A REASONABLE FEE N OT TO EXCEED $100 FOR THE 35
DELIVERY OF THE INFORMATION WITHIN 7 DAYS AFTER THE REQUE ST FOR THE 36
INFORMATION. 37
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(3) [In addition to the fees under paragraphs (1) and (2) of this subsection, 1
the] THE council of unit owners [is], THE GOVERNING BODY OF A CONDOMINIUM, OR 2
THEIR AGENTS ARE entitled ONLY to [a reasonable fee: 3

(i) Not to exceed $50 for delivery of the certificate within 14 days 4
after the request for the certificate; and 5

(ii) Not to exceed $100 for delivery of the certificate within 7 days 6
after the request for the certificate ] FEES ASSOCIATED WITH CREATING OR SENDING 7
THE INFORMATION DESCRIBED UNDER PARAGRAPH (2) OF THIS SUBSECTION. 8

(4) [(i) The Department of Housing and Community Development shall 9
adjust the maximum fee authorized under paragraph (1) of this subsection every 2 years, 10
beginning October 1, 2018, to reflect any aggregate increase in the Consumer Price Index 11
for All Urban Consumers (CPI–U) for the Washington Metropolitan Area, or any successor 12
index, for the previous 2 years. 13

(ii) The Department of Housing and Community Development shall 14
maintain on its website a list of the maximum fees authorized under paragraph (1) of this 15
subsection as adjusted every 2 years in accordance with subparagraph (i) of this paragraph. 16

(5)] With respect to the remaining information that the unit owner is 17
required to disclose under subsection (a) of this section that is not provided by the council 18
of unit owners and included in the certificate, a unit owner: 19

(i) Except as provided in item (ii) of this paragraph, is liable to the 20
purchaser under this section for damages proximately caused by: 21

1. An untrue statement about a material fact; and 22

2. An omission of a material fact that is necessary to make 23
the statements made not misleading, in light of the circumstances under which the 24
statements were made; and 25

(ii) Is not liable to the purchaser under this section if the owner had, 26
after reasonable investigation, reasonable grounds to believe, and did believe, at the time 27
the information was provided to the purchaser, that the statements were true and that 28
there was no omission to state a material fact necessary to make the statements made not 29
misleading, in light of the circumstances under which the statements were made. 30

(i) This section does not apply to the sale of any unit which is to be used and 31
occupied for nonresidential purposes. 32

(j) Subsections (a), (b), (c), (d), (e), (f), and (g) of this section do not apply to a sale 33
of a unit in an action to foreclose a mortgage or deed of trust. 34
HOUSE BILL 1260 9

11B–106. 1

(b) The vendor shall provide the purchaser the following information in writing: 2

(1) A statement as to whether the lot is located within a development; 3

(2) (i) The current monthly fees or assessments imposed by the 4
homeowners association upon the lot; 5

(ii) The total amount of fees, assessments, and other charges 6
imposed by the homeowners association upon the lot during the prior fiscal year of the 7
homeowners association; and 8

(iii) A statement of whether any of the fees, assessments, or other 9
charges against the lot are delinquent; 10

(3) The name, address, and telephone number of the management agent of 11
the homeowners association, or other officer or agent authorized by the homeowners 12
association to provide to members of the public, information regarding the homeowners 13
association and the development, or a statement that no agent or officer is presently so 14
authorized by the homeowners association; 15

(4) A statement as to whether the owner has actual knowledge of: 16

(i) The existence of any unsatisfied judgments or pending lawsuits 17
against the homeowners association; and 18

(ii) Any pending claims, covenant violations actions, or notices of 19
default against the lot; and 20

(5) A copy of: 21

(i) The articles of incorporation, the declaration, and all recorded 22
covenants and restrictions of the primary development, and of other related developments 23
to the extent reasonably available, to which the purchaser sha ll become obligated on 24
becoming an owner of the lot, including a statement that these obligations are enforceable 25
against an owner’s tenants, if applicable; and 26

(ii) The bylaws and rules of the primary development, and of other 27
related developments to the extent reasonably available, to which the purchaser shall 28
become obligated on becoming an owner of the lot, including a statement that these 29
obligations are enforceable against an owner and the owner’s tenants, if applicable. 30

(c) (1) (I) [Except as p rovided in paragraph (4) of this subsection, within 31
20 days after a written request by a lot owner other than a declarant and receipt of a 32
reasonable fee, not to exceed the cost to the homeowners association, if any, up to a 33
10 HOUSE BILL 1260

maximum of $250, the] THE homeowners association[,] OR the management agent of the 1
homeowners association [, or any other authorized officer or agent of the homeowners 2
association, shall provide the information listed under subsection (b) of this section] SHALL 3
MAINTAIN ON THE WEBSITE OF THE HOMEOWNERS ASSOCIATION OR MANAGEMENT 4
AGENT OF THE HOMEOWNERS ASSOCIATION ALL INFORMATION PERTAINING TO THE 5
HOMEOWNERS ASSOCIATION REQUIRED UNDER SUBSECTION (B) OF THIS SECTION, 6
NOT INCLUDING INFORMATION PERTAINING TO AN INDIVIDUAL LOT. 7

(II) THE HOMEOWNERS ASSOCIATION OR MANAGEMENT AGENT 8
OF THE HOMEOWNERS AS SOCIATION SHALL PROV IDE THE INFORMATION 9
DESCRIBED IN SUBPARA GRAPH (I) OF THIS PARAGRAPH IN A DOWNLOADABLE 10
FORMAT AND AT NO COST. 11

(2) (I) [In addition to the fee under paragraph (1) of this subsection, 12
the] THE homeowners association is entitled to a reasonable fee not to exceed $50 for 13
INFORMATION PERTAINING TO AN INDIVIDUAL LOT, INCLUDING an inspection of the 14
[lot owner’s] lot if the inspection is required by the governing documents of the homeowners 15
association. 16

(II) 1. THE HOMEOWNERS ASSOCI ATION OR MANAGEMENT 17
AGENT OF THE HOMEOWN ERS ASSOCIATION SHAL L PROVIDE THE INFORM ATION 18
PERTAINING TO AN IND IVIDUAL LOT UNDER SU BPARAGRAPH (I) OF THIS 19
PARAGRAPH WITHIN 14 DAYS AFTER THE REQUEST FOR THE INFORMATION. 20

2. IF A UNIT OWNER REQUE STS EXPEDITED DELIVE RY 21
OF INFORMATION PERTA INING TO AN INDIVIDU AL LOT, IN ADDITION TO THE FE E 22
DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COUNCIL OF UNIT 23
OWNERS IS ENTITLED T O A REASONABLE FEE N OT TO EXCEED $100 FOR THE 24
DELIVERY OF THE INFO RMATION WITHIN 7 DAYS AFTER THE REQUE ST FOR THE 25
INFORMATION. 26

(3) [In addition to the fees under paragraphs (1) and (2) of this subsection, 27
the] THE homeowners association, THE MANAGEMENT AGENT OF THE HOMEOWNERS 28
ASSOCIATION, OR THEIR AGENT is entitled ONLY to [a reasonable fee: 29

(i) Not to exceed $50 for delivery of the information within 14 days 30
after the request for the information; and 31

(ii) Not to exceed $100 for delivery of the information within 7 days 32
after the request for the information ] FEES ASSOCIATED WITH CREATING OR SENDING 33
THE INFORMATION DESCRIBED IN PARAGRAPH (2) OF THIS SUBSECTION. 34

[(4) (i) The Department of Housing and Community Development shall 35
adjust the maximum fee authorized under paragraph (1) of this subsection every 2 years, 36
HOUSE BILL 1260 11

beginning on October 1, 2018, to reflect any aggregate increase in the Consumer Price Index 1
for All Urban Consumers (CPI–U) for the Washington Metropolitan Area, or any successor 2
index, for the previous 2 years. 3

(ii) The Department of Housing and Community Development shall 4
maintain on its website a list of the maximum fees authorized under paragraph (1) of this 5
subsection as adjusted every 2 years in accordance with subparagraph (i) of this 6
paragraph.] 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9