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Bill would require common‑ownership communities to post resale documents online free; sponsor seeking technical amendment
Summary
Delegate Jessica Feldmark proposed HB 1221 to require condo and HOA associations to publish evergreen resale documents online and provide them free of charge in downloadable form, while allowing fees for unit‑specific inspections.
Delegate Jessica Feldmark told the committee HB 1221 would require common‑ownership communities (condominiums and HOAs) to publish the association’s evergreen resale documents online and make them downloadable at no charge, while preserving the ability to collect a fee for unit‑specific inspections where authorized.
The sponsor said resale packets often contain two components: evergreen association records (governing documents, budgets, insurance information) and unit‑specific items such as a ledger on dues or local inspections. Current practice often forces sellers to pay hundreds of dollars to a management company to assemble and deliver those documents on closing day. The bill would make evergreen materials available outside the contract window so buyers can review association rules and financials well before contract deadlines.
Maryland Realtors supported the policy, arguing earlier access helps buyers evaluate fit and reduces rushed contract rescissions. The sponsor said she will file a technical amendment to reconcile the bill’s online free‑access requirement with existing statute that currently caps fees for providing documents. The amendment, to be filed with the committee, would preserve allowable fees for unit‑specific inspections and remove duplicative fee caps where inconsistent with the free‑access requirement.
Why it matters: proponents said online free access would reduce transaction costs, help buyers evaluate condominium/HOA rules before entering contracts and remove a recurring, often costly closing expense. Industry witnesses urged careful drafting to preserve legitimate inspection rights and to ensure associations can still collect fees for individualized services.
Discussion and next steps: sponsor said an amendment is forthcoming to clarify fee language and to ensure inspections and unit‑specific work remain chargeable while evergreen documents are freely downloadable; no committee vote was recorded in the hearing transcript.
