Maryland Legislature Bans Developer Restrictions on Condominium Warranty Claims

Legislation to prevent condominium developers from imposing restrictions on condominium warranty claims was passed by the Maryland General Assembly during the final days of the legislative session in April, 2018.  In recent years, condominium developers have put provisions in condominium bylaws and sales contracts to limit the ability to condominium associations and unit owners to sue the developer for construction defects.

The new law amends the Maryland Condominium Act to make unenforceable any provisions which shorten the time for filing suit, require arbitration claims to be filed sooner than the time allowed to file suit, or operate to prevent a claim to be brought within the applicable statute of limitations.  This protects the legal rights of condo associations and owners to seek monetary compensation for construction deficiencies related to a developer’s failure to comply with applicable building codes; approved plans and specifications; product manufacturer’s installation instructions; and implied statutory warranties.

On behalf of the Community Associations Institute, Tom Schild testified in support of the bill at the House Committee hearing.  The new law takes effect on October 1, 2018.

Posted by Thomas Schild Law Group, LLC, attorneys for condominiums, homeowner associations and housing cooperatives in Maryland -– including Montgomery County, Prince George’s County, Howard County, and Baltimore County; and in Baltimore City and Washington, D.C.

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