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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0633*
SENATE BILL 633
N1 6lr3064
CF 6lr3073
By: Senator Ready
Introduced and read first time: February 5, 2026
Assigned to: Judicial Proceedings
A BILL ENTITLED
AN ACT concerning 1
Condominiums – Unit Owner Responsibility for Damage or Destruction 2
FOR the purpose of providing that a certain unit owner is responsible for the full cost of 3
repair, replacement, or restoration for certain portions of a condominium under 4
certain circumstances ; and generally relating to condominium unit owners’ 5
responsibility for damage or destruction. 6
BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 11–114(g) 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Real Property 13
Section 11–114(i) 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2025 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEM BLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Real Property 19
11–114. 20
(g) (1) Subject to the applicable coverage specified under subsection (a)(1) of 21
this section, any portion of the common elements and the units, exclusive of improvements 22
and betterments installed in the units by unit owners other than the developer, damaged 23
or destroyed shall be repaired or replaced promptly by the council of unit owners unless: 24
2 SENATE BILL 633
(i) The condominium is terminated; 1
(ii) Repair or replacement would be illegal under any State or local 2
health or safety statute or ordinance; or 3
(iii) 80 percent of the unit owners, including every owner of a unit or 4
assigned limited common element which will not be rebuilt, vote not to rebuild. 5
(2) (i) 1. [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) 6
OF THIS PARAGRAPH, THE cost of repair or replacement in excess of insurance proceeds 7
and reserves is a common expense. 8
2. A property insurance deductible is not a cost of repair or 9
replacement in excess of insurance proceeds. 10
(ii) If the cause of any damage to or destruction of any portion of the 11
condominium originates from the common elements or an event outside of the condominium 12
units and common elements, the council of unit owners’ property insurance deductible is a 13
common expense. 14
(iii) [1.] If the cause of any damage to or destruction of any portion 15
of the condominium originates from a unit, the owner of the unit where the cause of the 16
damage or destruction originated is responsible for the [council of unit owners’ property 17
insurance deductible not to exceed $10,000 ] FULL COST OF REPAIR OR REPLACEMENT 18
OF THE DAMAGED OR DESTROYED PORTION OF THE CONDOMINIUM. 19
[2.] (IV) The council of unit owners shall inform each unit 20
owner annually in writing of: 21
1. THE UNIT OWNER ’S RESPONSIBILITY FOR THE FULL 22
COST OF REPAIR OR RE PLACEMENT FOR DAMAGE OR DESTRUCTION THAT 23
ORIGINATED FROM THE OWNER’S UNIT; AND 24
2. A. The unit owner’s responsibility for A PORTION OF 25
the council of unit owners’ prop erty insurance deductible IF DAMAGE OR DESTRUCTION 26
OF ANY PORTION OF TH E CONDOMINIUM ORIGIN ATES FROM THE COMMON 27
ELEMENTS OR AN EVENT OUTSIDE THE CONDOMINIUM; and 28
B. The amount of the deductible. 29
[3. The council of unit owners’ property insurance deductible 30
amount exceeding the $10,000 responsibility of the unit owner is a common expense.] 31
[(iv)] (V) In the same manner as provided under § 11 –110 of this 32
title, the council of unit owners may make an annual assessment against the unit owner 33
responsible under subparagraph (iii) of this paragraph. 34
SENATE BILL 633 3
(3) (I) If the DAMAGE OR DESTRUCTIO N TO A PORTION OF TH E 1
CONDOMINIUM ORIGINATED FROM THE COMMON ELEMENTS OR AN EVENT OUTSIDE 2
THE CONDOMINIUM AND THE damaged or destroyed portion of the condominium is not 3
repaired or replaced: 4
[(i)] 1. The insurance proceeds attributable to the damaged 5
common elements shall be used to restore the damaged area to a condition compatible with 6
the remainder of the condominium; 7
[(ii)] 2. The insurance proceeds att ributable to units and limited 8
common elements which are not rebuilt shall be distributed to the owners of those units 9
and the owners of the units to which those limited common elements were assigned; and 10
[(iii)] 3. The remainder of the proceeds shall be distributed to all 11
the unit owners in proportion to their percentage interest in the common elements. 12
(II) IF THE DAMAGE OR DEST RUCTION OF A PORTION OF THE 13
CONDOMINIUM ORIGINATED IN A UNIT AND THE DAMAGED OR DESTROYED PORTION 14
OF THE CONDOMINIUM IS NOT REPAIRED OR REPLACED: 15
1. THE DAMAGED OR DESTROYED AREA SHALL BE 16
RESTORED TO A CONDIT ION COMPATIBLE WITH THE REMAINDER OF THE 17
CONDOMINIUM; AND 18
2. THE OWNER OF THE UNIT WHERE THE DAMAGE OR 19
DESTRUCTION ORIGINAT ED IS RESPONSIBLE FO R THE COST TO RESTORE THE 20
DAMAGED AREA. 21
(4) (i) If the unit owners vote not to rebuild any unit, that unit’s entire 22
common element interest, votes in the council of unit owners, and common expense liability 23
are automatically reallocated upon the vote as if the unit h ad been condemned under § 24
11–112 of this title, and the council of unit owners promptly shall prepare, execute, and 25
record an amendment to the declaration reflecting the reallocations. 26
(ii) Notwithstanding the provisions of this subsection, § 11 –123 of 27
this title governs the distribution of insurance proceeds if the condominium is terminated. 28
(i) The provisions of this section do not apply to a condominium all of whose units 29
are intended for nonresidential use. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2026. 32