LEGAL UPDATE: IMPORTANT AMENDMENTS EFFECTIVE OCTOBER 1, 2017
DUTIES AND OBLIGATIONS OF REAL ESTATE LICENSEES (Section 17-532 of the Business Occupations and Professions Article)
Effective October 1, 2017, Section 17-532 contains a number of new provisions for licensees providing brokerage services. Below are the highlights:
To view the full text of this statute, see: https://govt.westlaw.com/mdc/Document/N3D784A306B6211E78E5FF3477C69ED24?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
HOMEOWNERS ASSOCIATIONS – RESALE OF LOT – INSPECTION FEES (Section 11B-106 of the Real Property Article)
Effective October 1, 2017, when a lot subject to a Homeowners Association (HOA) is resold, the HOA may charge a fee up to fifty dollars ($50.00) for an inspection of the lot, if an inspection is required by the HOA governing documents. In addition to this fee, a HOA can charge a statutory maximum of two hundred fifty dollars ($250.00) for providing:
To view the full text of this statute, see:
NOTICE OF FORECLOSURE SALE AND POSTPONEMENT OR CANCELLATION OF FORECLOSURE SALE (Section 7-105.2 of the Real Property Article)
Effective October 1, 2017, the person authorized to make a sale in a foreclosure action (for a foreclosed Deed of Trust: the Trustee or Substitute Trustee; for a foreclosed Mortgage: a secured party authorized by the lien instrument to make the sale or any other individual designated by name in the lien instrument to exercise the power of sale) must provide notice of the proposed sale to a Condominium or Homeowners Association that recorded a lien against the property under the Maryland Contract Lien Act at least thirty (30) days before the proposed sale date. The notice must be sent via certified mail, return receipt requested, include the time, place, and terms of the sale, and be sent and no later than ten (10) days before the date of sale. The person giving the notice must file in the foreclosure proceedings the return receipt of the notice or an affidavit demonstrating compliance with the statute.
If a foreclosure sale is postponed or cancelled, the Trustee/authorized person must send a notice of the same to a Condominium or Homeowners Association that received a notice of the proposed sale, and do so by first-class mail, postage prepaid, within fourteen (14) days after the postponement or cancellation.
These amendments apply to any foreclosure sale scheduled to occur after October 1, 2017. To view the full text of this statute, see:
FORECLOSURE REPORTING REQUIREMENTS TO DLLR TO TAKE EFFECT ON OCTOBER 1, 2018 (Section 7-105.2 of the Real Property Article, to be amended)
Effective October 1, 2018, within seven (7) days of the filing of an Order to Docket or a Complaint to Foreclose a Mortgage or Deed of Trust on residential property, the person authorized to make the sale must provide a Notice of Foreclosure to the Department of Labor, Licensing, and Regulation (DLLR). The Notice must be in the form that DLLR requires, which may be a registration with the Foreclosed Property Registry. The Notice must contain the following regarding the property subject to foreclosure:
To view the full text of these amendments, see: http://mgaleg.maryland.gov/2017RS/chapters_noln/Ch_349_hb1048E.pdf. Once the amendments go into effect, be sure to further research reporting requirements with DLLR for additional clarification and to ensure compliance with the statute.
Readers with questions about this or any real estate legal matter can reach Dave Parker at 301-590-9300.