New Maryland Condominium Law - Effective June 1, 2009
Effective June, 1, 2009, a new condominium law went into effect in the State of Maryland. GCAAR provided this announcement. in order to address these changes and the following is a summary and some helpful pointers regarding the law:
The new law requires that the Master Insurance Policy cover the Units (at least to a certain extent) in addition to the Common Areas. It also requires that, in the event there is a loss covered by the Master Insurance Policy that emanates from a particular unit, the owner of the Unit causing the loss is responsible to pay the deductible under the Master Insurance Policy up to a maximum of $5,000.00.
For real estate transactions, the law also requires that buyers must be given notice in a contract for the sale for a condominium in Maryland, ratified on or after June 1, 2009, that the Resale Package must advise the buyer that they might be responsible for payment of that deductible and the amount of that deductible. IN THE EVENT THAT SUCH NOTICE IS NOT INCLUDED IN THE SALES CONTRACT, THE CONTRACT IS UNENFORCEABLE