Chapter 11A. Condominiums - Regulations

1.1 Concurrently with the giving of the Notice of Intention to Create a Condominium as required by Section 11-102.1, Condominium Act, Real Property Article, Annotated Code of Maryland, the developer must give notice, in writing, to each tenant of the rights of certain elderly, handicapped, and low and moderate income tenants to extended leases as described in Section 11A-5 of the Montgomery County Code, as amended, and in Section 11-137 of the Real Property Article, Annotated Code of Maryland.

1.2 The Notice must clearly describe:

2.1 The provisions of this regulation are severable. If a court holds that a provision is invalid or inapplicable, the remainder of the regulation remains in effect.

1.1 Condominium; Condominium Regime. "Condominium" and "Condominium Regime" means property established as a condominium regime under Title 11, Real Property Article, Annotated Code of Maryland.

1.2 Developer. "Developer" means any person who subjects his or her property to a condominium regime, or any person who is the successor in title to ownership of a unit in a condominium.

1.3 Extended Lease. "Extended Lease" means a lease granted to a tenant under the provisions of Section 11A-5, Condominiums, Montgomery County Code.

1.4 Rental Assistance. "Rental Assistance" means any payment received by a tenant from a local, State, or Federal government agency to be used toward the payment of rent.

2.1 A developer must continue to accept rental assistance from a tenant who is the subject of an extended lease.

3.1 The provisions of this regulation are severable. If a court holds that a provision is invalid or inapplicable, the remainder of the regulation remains in effect.

1.1 In the case of a conversion, the developer must file with the Office of Consumer Affairs, four (4) copies each of the Public Offering Statement and the Consumer Guide. The developer must provide the Office of Consumer Affairs with additional copies upon request. In the case of new construction, the developer must file with the Office of Consumer Affairs two (2) copies each of the Public Offering Statement and the Consumer Guide.

1.2 The Consumer Guide must be printed on 8 ½" x 11" paper and be in type no smaller than standard elite (except when reduced photocopies of actual documents are included). All pages must be numbered.

2.1 The Consumer Guide must contain the following information:

a) Name and address of developer.

b) Nature of the legal entity comprising the developer.

c) Names and addresses of all individuals or other legal entities who are partners or corporate officers or directors of the developer.

d) Names and addresses of all partners of any partnership, all officers and directors of any corporation, and all trustees of any trust.

e) Names and addresses of other condominiums built or converted within the preceding five years by the developer or by any person identified in Sections c and d, above, either individually or as a general partner in another developer.

f) Names and addresses of any lending institutions, or other sources, providing acquisition, construction, or interim financing.

g) Nature and extent of protection to the purchaser if the developer defaults on acquisition, construction, or interim financing, or on any blanket encumbrance.

h) Nature and extent of protection to the purchaser from mechanics’ liens.

i) Names and addresses of architects, engineers, or contractors involved in renovation work in a condominium conversion.

3.1 Statement of sale prices

a) To the public for owner occupancy.

b) To the public for investment (if different from a, above).

c) To existing tenants for owner occupancy.

d) To existing tenants for investment (if different from c, above).

3.2 Disposition of purchasers' deposits

a) Amount of deposit required.

b) Name and address of institution which will hold purchasers' deposits.

c) Nature and extent of protection of deposits.

d) Rate of interest, if any, to be earned.

3.3 Estimated itemized monthly housing costs

a) Principal and interest

b) Taxes

c) Condominium fee

d) Fees for any facilities to be used by condominium owners which are not part of the condominium.

e) Deferred water and sewer charges

f) Special improvement assessments.

3.4 Itemized list of costs included in condominium fee.

3.5 Names and addresses of institutions offering long-term financing and terms of such financing.

3.6 Estimated itemized closing costs.

3.7 Date on which condominium regime was or will be established.

3.8 Projected earliest and latest dates of settlement on individual units.

3.9 Sample deed.

3.10 Copy of sales brochure

- if published subsequently, a copy of the sales brochure must be filed with the Office of Consumer Affairs ten (10) days prior to public distribution.

3.11 A statement providing the method and timing of transfer of control of the Council of Unit Owners to unit purchasers.

4.1 The required description of the condominium must include but not be limited to:

4.2 Description of units

a) Physical description of all residential units

b) Nature and extent of ownership of all residential units

c ) Number and location of all non-residential units

d) Uses (e.g. professional, office, commercial, etc.) of all non-residential units

e) A statement of any restrictions on use of units.

4.3 Description of common elements.

4.4 Description of facilities to be used-by condominium owners which are not part of the condominium along with any fees for such use.

4.5 Description of the division of maintenance responsibilities between the Council of Unit Owners and the individual unit owner. This description must include specific examples, particularly for doors, windows, and other items at the boundaries of units and common elements; limited common elements; and any items which are not part of the units but are the unit owner's obligation to maintain.

4.6 Disclosure of developer ownership and/or plans or intentions of the developer for the development of any land contiguous to the condominium, including the projected dates for commencement and completion of such development.

4.7 Itemization of all renovation and rehabilitation work to be performed on units and common elements.

4.8 Projected completion dates for new construction or for each item of renovation and rehabilitation.

4.9 Disclosure of all outstanding building or housing code violations.

4.10 Disclosure of any pending litigation, liens, judgments or other matters of record with respect to the condominium, the land on which the condominium is built, or the rental facility to be converted to a condominium regime which could affect the developer's ability to convey clear title.

4.11 In the case of a conversion, disclosure of all administrative, operating, management, capital, maintenance, and other costs of the rental facility for each of the three years immediately preceding conversion.

4.12 Plat

4.13 Statement of all warranties, including statutory implied warranties. If any purchaser will be asked to consent to any legally permitted exclusion or modification of any implied warranty, a copy of the written consent form to be used must be provided.

5.1 The Consumer Guide must contain an affidavit, executed in accordance with State Law, by a senior executive officer of the developer, on behalf of the developer, certifying that the information, documents, and representations in the Consumer Guide, and any amendments, supplements, or modifications are full, true, complete and correct. The affidavit must further certify that the developer must carry out the promises, warranties, and obligations set forth in the Consumer Guide or has delineated who is responsible for promises, warranties, or obligations for which the developer is not responsible and has provided warnings required by law.

6.1 The cover of the Consumer Guide must contain the following warning, double-spaced and capitalized.

"IT IS UNLAWFUL FOR ANYONE TO MAKE ANY REPRESENTATION THAT MONTGOMERY COUNTY, MARYLAND HAS PASSED UPON THE MERITS OF, OR GIVEN APPROVAL TO, THIS CONDOMINIUM. IT IS UNLAWFUL FOR ANYONE TO MAKE ANY REPRESENTATIONS WHICH DIFFER FROM THE REPRESENTAIONS IN THIS CONSUMER GUIDE OR IN THE PUBLIC OFFERING STATEMENT."

7.1 The provisions of this regulation are severable. If a court holds that a provision is invalid or inapplicable, the remainder of the regulation remains in effect.

1.1 Concurrently with the filing of the Public Offering Statement and Consumer Guide with the Office of Consumer Affairs, the developer must deliver a notice to each tenant advising that the Public Offering Statement and Consumer Guide have been filed with the Office of Consumer Affairs and that tenants have the right to review these documents.

2.1 The provisions of this regulation are severable. If a court holds that a provision is invalid or inapplicable, the remainder of the regulation remains in effect.

1.1 In the case of either a conversion condominium or a new construction condominium, the developer must establish a reserve fund at a level adequate for deferred maintenance, repairs and replacement of those common elements or major components of common elements that must be replaced on a periodic basis. The developer must contribute to such a reserve fund in proportion to the number of condominium units owned by the developer.

2.1 "Common elements" is defined as all of the condominium except the units.

2.2 "Major components of common elements" is defined as including but not limited to the following:

• painting

• outside lighting fixtures

• roofing

• carpets and floors in common areas

• boilers

• elevators

• central heat & air conditioning

• private streets/driveways

• recreational facilities/amenities

• furnishings and equipment

• piping

• miscellaneous underground utilities, i.e., storm sewers, water pipes, and electrical system

3.1 The amount of reserves that are required to be set aside will be based on the following process:

• An inventory of those common elements subject to periodic replacement.

• Determination of the remaining useful life of each element to be replaced over time.

• Estimation of the cost of replacement at the expiration of the remaining useful life of each common element.

• Adjustment of that amount by any salvage value that may remain.

• Division of the total sum derived from the above cited procedure by the number of years of remaining useful life will determine the annual sum needed to be set aside to assure that adequate funds are available when replacement is required.

4.1 The budget reserve requirement must be incorporated as part of the disclosures in the "Consumer Guide."

5.1 The provisions of this regulation are severable. If a court holds that a provision is invalid or inapplicable, the remainder of the regulation remains in effect.