Frequently Asked Questions

Legal Hotline FAQ

a blog of the most frequently asked questions to the MAR legal hotline.


Cindy Sellers
Cindy Sellers
Cindy Sellers's Blog

In a transaction involving the resale of a condominium, which MAR forms are used and under what circumstances?

There are four MAR forms relative to the resale which have been drafted to comply with Maryland Condo Act: 1) the Condominium Resale Notice; 2) the Condominium Resale Disclosure And Transmittal of Documents From Seller As Unit Owner; 3) the Condominium Resale Disclosure Certificate From Council of Unit Owners; and 4) the Resale of Condominium Unit Acknowledgment.The Condominium Resale Notice (“the Notice”) is intended to inform the Buyer of the various disclosures the Seller is obligated to make pursuant to the Maryland Condominium Act. Specifically, the Notice informs the Buyer of her right to receive information such as a copy of the Declaration, the Bylaws, the Rules and Regulations of the Condominium, and a certificate from the Council of Unit Owners containing certain information. The Notice is presented to the Buyer on or before the Buyer prepares the offer and becomes part of the Contract.
 
The Condominium Resale Disclosure Certificate From Council of Unit Owners is presented by the Seller to the Council of Unit Owners. Utilizing this form, the Council of Unit Owners must disclose information to the Buyer such as the amount of monthly common expense assessment and the amount of any unpaid common expense or special assessment currently due and payable from the Seller. The Council of Unit Owners completes the form, attaches the requested documentation and returns the form and documentation to the Seller within the stated time frame. The form and documentation are presented to the Buyer and become part of the Contract. Under Maryland law, the maximum fee that the Council of Unit Owners may charge a unit owner for providing a resale package is $250. This figure may be CPI-U adjusted every 2 years, but as of October 1, 2016 the maximum fee is $250.  The Council of Unit Owners may also charge a $50 expedited fee for delivery of resale packages within 14 days and a $100 expedited fee for delivery of resale packages within 7 days. A $100 inspection fee may also be charged by the Council of Unit Owners. 
 
The Condominium Resale Disclosure and Transmittal of Documents from Seller as Unit Owner is presented by the Seller to the Buyer. This form requires the Seller to disclose information such as whether the Seller has any knowledge of any violation of the health and building codes with respect to the unit or to the limited common elements and whether the seller has any knowledge that the unit is subject to a lease. The Seller must complete this form, attach the relevant documentation and present it to the Buyer. This form and the documentation become part of the Contract.
 
The Resale of Condominium Acknowledgement is intended to serve as confirmation that the Buyer received the required disclosures and documentation. Only the Buyer signs this form and it too becomes part of the Contract.
 
For your information, Section 11-135 of the Condo Act discusses the requirements for the resale of a condo unit.  §11-135(a) Documents to be delivered by unit owner to purchaser requires that the unit owner furnishes to the purchaser not later than 15 days prior to closing:
(1)   A copy of the declaration (other than the plats);
(2)   The bylaws;
(3)   The rules or regulations of the condominium;
(4)   A certificate containing:
(i)   A statement disclosing the effect on the proposed conveyance of any right of first refusal or other restraint on the free alienability of the unit other than any restraint created by the unit owner;
(ii)   A statement setting forth the amount of the common expense assessment and any unpaid common expense or special assessment adopted by the council of unit owners that is due and payable from the selling unit owner;
(iii)   A statement of any other fees payable by the unit owners to the council of unit owners;
(iv)   A statement of any capital expenditures approved by the council of unit owners planned at the time of the conveyance which are not reflected in the current operating budget disclosed under item (vi) of this item;
(v)   The most recent regularly prepared balance sheet and income expense statement, if any, of the condominium;
(vi)   The current operating budget of the condominium including the current reserve study report or a summary of the report, a statement of the status and amount of any reserve or replacement fund, or a statement that there is no reserve fund;
(vii)   A statement of any unsatisfied judgments or pending lawsuits to which the council of unit owners is a party, excluding assessment collection suits;
(viii)   A statement generally describing any insurance policies provided for the benefit of unit owners, a notice that copies of the policies are available for inspection, stating the location at which the copies are available, and a notice that the terms of the policy prevail over the description;
(ix)   A statement as to whether the council of unit owners has actual knowledge of any violation of the health or building codes with respect to the common elements of the condominium; and
(x)   A description of any recreational or other facilities which are to be used by the unit owners or maintained by them or the council of unit owners, and a statement as to whether or not they are to be a part of the common elements;
(5)   A statement by the unit owner as to whether the unit owner has knowledge:
(i)   That any alteration to the unit or to the limited common elements assigned to the unit violates any provision of the declaration, bylaws, or rules and regulations;
(ii)   Of any violation of the health or building codes with respect to the unit or the limited common elements assigned to the unit; and
(iii)   That the unit is subject to an extended lease under § 11–137 of this title or under local law, and if so, a copy of the lease must be provided; and
(6)   A written notice of the unit owner’s responsibility for the council of unit owners’ property insurance deductible and the amount of the deductible.
 


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