MARYLAND STATUTES
REFERENCE BOOK – 2010 EDITION

TABLE OF CONTENTS

Maryland Condominium Act - content
Section 11-101, et seq.

Maryland Homeowners Association Act - content
Section 11B-101, et seq.

Maryland Warranties - content
Sections 10-201 to 10-204

Rules of Construction
Restriction on Use

Miscelaneous Statutes - content
Display of U.S. Flag
Installation and use of clotheslines on residential property
Prince George's County - Property Management - Services Registration
Maryland Contract Lien Act
Sections 14-201, et seq.

Maryland Corporations and Associations - content
(selected provisions)

Property Tax Credits and Property Tax Relief - content
(selected provisions)

Courts and Judicial Proceedings - content
(selected provisions on liability)

Montgomery County Code - content
(selected chapters)

MARYLAND CONDOMINIUM ACT (TOP)

Section 11-101. Definitions -1-
Section 11-102. Establishment of condominium regime -2-
- Section 11-102.1. Notice prior to conversion of residential property to condominium -4-
- 11-102.2. Termination of leases -10-
Section 11-103. Declaration -11-
- Section 11-103.1. Corrective amendments -14-
Section 11-104. Bylaws -15-
Section 11-105. Condominium plat -17-
Section 11-106. Status and description of units -19-
Section 11-107. Percentage interests -19-
Section 11-108. Use of common elements -21-
- Section 11-108.1. Responsibility for maintenance, repair, and replacement -21-
Section 11-109. Council of unit owners -22-
- Section 11-109.1. Closed meetings of board of directors -28-
- Section 11-109.2. Annual proposed budget -29-
- Section 11-109.3. Court appointment of receiver -30-
Section 11-110. Common expenses and profits; assessments; liens -31-
Section 11-111. Rules and regulations -32-
- Section 11-111.1. Family day care homes -34-
- Section 11-111.2. Restrictions on candidate signs and propositions -37-
- Section 11-111.3. Distribution of written information or materials -38-
Section 11-112. Eminent domain -38-
Section 11-113. Dispute settlement mechanism -40-
Section 11-114. Required insurance coverage; reconstruction -41-
- Section 11-114.1. Fidelity insurance -45-
Section 11-115. Improvements, alterations or additions by unit owner -46-
Section 11-116. Books and records to be kept; audit; inspection of records -46-
Section 11-117. Taxation -48-
Section 11-118. Mechanics' and materialmen's liens -28-
Section 11-119. Resident agent -49-
Section 11-120. Expanding condominiums -49-
Section 11-121. Deposits on new condominiums -51-
Section 11-122. Zoning and building regulations -51-
Section 11-123. Termination of condominium -51-
Section 11-124. Rules of construction -53-
Section 11-125. Easements and encroachments -55-
Section 11-126. Disclosure requirements -58-
Section 11-127. Registration -62-
Section 11-128. Duties of Secretary of State -64-
Section 11-129. Foreign condominium units sold in State -64-
Section 11-130. Consumer protection standard; enforcement -65-
Section 11-131. Warranties applicable to units -65-
Section 11-132. Documents to be delivered to Council of Unit Owners by developer -67-
Section 11-133. Termination of leases or management and similar contracts -68-
Section 11-134. Employing developer to effect sale -69-
Section 11-135. Resale of unit -69-
Section 11-136. Tenant's right to buy property -75-
Section 11-137. Designated household; lease of unit -77-
Section 11-138. Local government's right to purchase rental facility -85-
Section 11-139. Local government's right to purchase units -86-
- Section 11-139.1. Notice of Meetings by Electronic Transmission -88-
- Section 11-139.2. Voting and Proxies by Electronic Transmission -88-
Section 11-140. Legislative intent; local legislative finding and declaration of rental housing emergency; local laws and regulations to meet emergency; copies -89-
Section 11-141. Title additional and supplemental -90-
Section 11-142. Applicability to existing condominiums -90-
Section 11-143. Short title -91-

HOMEOWNERS ASSOCIATION ACT(TOP)

Section 11B-101. Definitions -94-
Section 11B-102. Applicability of title and Sections 11B-105 through 11B-108 and 11B-110 -96-
Section 11B-103. Variance of title's provisions and waiver of rights conferred thereby, and evasion of title's requirements, limitations, or prohibitions prohibited -97-
Section 11B-104. Building code or zoning laws, ordinances, and regulations to be given full force and effect; local laws, ordinances, or regulations -97-
Section 11B-105. Initial sale of lots in developments containing more than 12 lots -98-
Section 11B-106. Resale of lot; initial sale of lot in development containing 12
or fewer lots -103-

Section 11B-106.1. Meeting to elect governing body of homeowner's association -106-

Section 11B-107. Initial sale of lot not intended to be occupied or rented for residential purposes -108-
Section 11B-108. Cancellation of contract -110-
Section 11B-109. Untrue statements or omissions by vendor -111-
Section 11B-110. Warranties; notice of defect -112-
Section 11B-111. Meetings of homeowners association or its governing body -113-
- Section 11B-111.1. Family day care homes - No-impact home-based businesses -114-
- Section 11B-111.2. Candidate or proposition sign -118-
- Section 11B-111.3. Distribution of written information and materials -119-
- Section 11B-111.4. Meetings -119-
- Section 11B-111.5. Court appointment of receiver -120-
- Section 11B-111.6. Fidelity insurance -120-
Section 11B-112. Books and records of homeowners association; disclosures to be deposited into depository -121-
- Section 11B-112.1. Late charges -123-
- Section 11B-112.2. Notice, information and adoption of annual budget -123-
Section 11B-113. Homeowners association depository -125-
- Section 11B-113.1. Notice of Meetings by Electronic Transmission -126-
- Section 11B-113.2. Voting and Proxies by Electronic Transmission -126-
- Section 11B-113.3 Deletion of Ownership Restrictions Based on Race, Religious Belief or National Origin -127-
- Section 11B-113.4. Annual charges -128-
- Section 11B-113.5. Annexation of land - Howard County - -129-
Section 11B-114. Electronic Payment Fee -130-
Section 11B-115. Enforcement of Authority of Division of Consumer Protection -131-
Section 11B-116. Short title -131-

EXPRESS AND IMPLIED WARRANTIES(TOP)

Section 10-201. Definitions -132-
Section 10-202. Creation of express warranties; exclusion or modification of express warranty -132-
Section 10-203. Implied warranties
-133- Section 10-204. Breach of warranty; expiration of warranty; limitation of actions -134-
Section 10-205. Grant to intermediate purchaser to evade liability -135-

RULES OF CONSTRUCTION(TOP)

Section 2-119. Covenants restricting installation of solar collector systems -136-

MISCELLANEOUS STATUTES(TOP)

Section 14-128. Display of U.S. Flag by Homeowners and Tenants -138-
Section 14-130. Installation and use of clotheslines on residential property -139-
Section 14-131. Prince George's County - Property Management Services Registration -141-
MARYLAND CONTRACT LIEN ACT
- Section 14-201. Definitions -144-
- Section 14-202. Creation of lien by contract -144-
- Section 14-203. Creation of lien as result of breach of contract -145-
- Section 14-204. Enforcement and foreclosure of lien -148-
- Section 14-205. Exemptions -149-
- Section 14-206. Short title -149-

CORPORATIONS AND ASSOCIATIONS (TOP)

Section 1-208. Resident Agents - Written Consent -152-
Section 2-401. Function of directors -152-
Section 2-402. Number of directors -152-
Section 2-403. Qualifications of Directors -153-
Section 2-404. Election and tenure of directors -153-
Section 2-405. Directors holding over -154-
- Section 2-405.1. Standard of care required of directors -154-
- Section 2-405.2. Corporate limitations on director liability -155-
Section 2-406. Removal or resignation of director -155-
Section 2-407. Vacancy on board -156-
Section 2-408. Action by directors -157-
Section 2-409. Meetings of directors -158-
Section 2-410. Dissent of director to action of board -159-
Section 2-411. Executive and other committees -159-
Section 2-412. Required and permitted officers -160-
Section 2-413. Election, tenure, and removal of officers -161-
Section 2-414. Powers and duties of officers and agents -161-
Section 2-415. Holding more than one office -161-
Section 2-416. Financial assistance to officers & employees -162-
Section 2-418. Indemnification of directors, officers, employees and agents -162-
Section 2-419. Interested director transactions -168-
Section 2-501. Annual meeting -169-
Section 2-502. Special meeting -170-
- Section 2-502.1. Participation in meeting via conference communications -172-
Section 2-503. Place of meetings -172-
Section 2-504. Notice of meeting -173-
Section 2-506. Quorum; voting -174-
Section 2-507. General right to vote; proxies -175-
Section 5-201. Application of Maryland General Corporation Law -176-
Section 5-202. Provisions in charter or bylaws -176-
Section 5-206. Insufficient number of members present at meeting -177-
Section 5-6B-01. Definitions. No-impact home-based businesses -178-
- Section 5-6B-18.1. No-impact home-based businesses (in a cooperative) -178-
- Section 5-6B-18.5. Examination and copying of books and records of cooperative housing corporations -180-
- Section 5-6B-18.6. Fidelity insurance -181-

PROPERTY TAX CREDITS AND PROPERTY TAX RELIEF (TOP)

Section 9-238. Property Tax Credit - Community Assoc. -183-

COURTS AND JUDICIAL PROCEEDINGS STATUTES (TOP)

Section 5-406. Personal Liability. Agents of certain associations or organizations -184-
Section 5-417. Directors of corporations generally -187-
Section 5-418. Charter provisions governing liability of corporate directors or officers -188-

MONTGOMERY COUNTY CODE (SELECTED CHAPTERS) (TOP)

Chapter 10B. COMMON OWNERSHIP COMMUNITIES
ARTICLE 1. COMMISSION ON COMMON OWNERSHIP COMMUNITIES
- Section 10B-1. Findings; purpose -191-
- Section 10B-2. Definitions -192-
- Section 10B-3. Commission on Common Ownership Communities -192-
- Section 10B-4. Administrative support -194-
- Section 10B-5. Duties of the Department of Housing and Community Affairs -194-
- Section 10B-6. Duties of the Commission on Common Ownership Communities -195-
- Section 10B-7. Registration; fees -196-
ARTICLE 2. DISPUTE RESOLUTION
- Section 10B-8. Defined terms -197-
- Section 10B-9. Filing of disputes; exhaustion of association remedies -199-
- Section 10B-9A. Request for relief from stay -200-
- Section 10B-10. Production of evidence -200-
- Section 10B-11. Mediation; dismissal before hearing -201-
- Section 10B-12. Hearing Panel -202-
- Section 10B-13. Administrative hearing -203-
- Section 10B-14. Settlement of disputes; assistance to parties -205-
- Section 10B-15. Regulations -205-
ARTICLE 3. OPEN CONDUCT
- Section 10B-16. Repealed -205-
- Section 10B-17. Voting procedures -205-
- Section 10B-18. Budget -206-
- Section 10B-19. Enforcement -207-
Chapter 11A. CONDOMINIUMS
- Section 11A-1. Legislative findings -207-
- Section 11A-2. Definitions -209-
- Section 11A-3. Right of first refusal to purchase rental facilities -210-
- Section 11A-4. Right of first refusal to purchase condominium units in a condominium regime -215-
- Section 11A-5. Extended leases -216-
- Section 11A-5A Reserved -216-
- Section 11A-6. Public offering statement -218-
- Section 11A-7. Consumer guide -218-
- Section 11A-8. Notices to local government -219-
- Section 11A-9. Budgeted reserves -220-
- Section 11A-10. Inspection of property -220-
- Section 11A-11. Unlawful representations -221-
- Section 11A-12. Complaints, penalties, enforcement -221-
- Section 11A-13. Administration of chapter -222-
- Section 11A-14. Reserved -222-
Chapter 24B. HOMEOWNERS' ASSOCIATIONS
- Section 24B-1. Definitions -223-
- Section 24B-2. Program of support for roadway maintenance -223-
- Section 24B-3. Qualifying homeowners' associations -223-
- Section 24B-4. Amount of assistance -224-
- Section 24B-5. Limitation on expenditure -224-
- Section 24B-6. Regulations -225-
- Section 24B-7. Amendment of bylaws -225-
- Section 24B-8. Private maintenance roads -225-
Chapter 31. MOTOR VEHICLES AND TRAFFIC
- Section 31-14. Parking of heavy commercial vehicles, recreational vehicles, or busses -228-
- Section 31-20. Parking prohibited, specifically -229-