2013 Maryland Code
REAL PROPERTY
§ 11-102 - Establishment of condominium regime

§11-102.

(a) (1) The fee simple owner or lessee under a lease that exceeds 60 years of any property in the State may subject the property to a condominium regime by recording among the land records of the county where the property is located, a declaration, bylaws, and condominium plat that comply with the requirements specified in this title.

(2) (i) Notwithstanding the provisions of paragraph (1) of this subsection, a leasehold estate may not be subjected to a condominium regime if it is used for residential purposes unless the State, a county that has adopted charter home rule under Article XI-A of the Maryland Constitution, a municipal corporation, or, subject to the provisions of subparagraph (ii) of this paragraph, the Washington Metropolitan Area Transit Authority is the owner of the reversionary fee simple estate.

(ii) The Washington Metropolitan Area Transit Authority may establish a leasehold estate for a condominium regime that is used for residential purposes under subparagraph (i) of this paragraph if, when the initial term of the lease expires, there is a provision in the lease that allows the lessee to automatically renew the lease for another term.

(3) Notwithstanding paragraph (2) of this subsection or any declaration, rule, or bylaw, a developer or any other person may not be prohibited from granting a leasehold estate in an individual unit used for residential purposes.

(b) If any property lying partly in one county and partly in any other county is subjected to a condominium regime, the declaration, bylaws, and condominium plat shall be recorded in all counties where any portion of the property is located. Subsequent instruments affecting the title to a unit which is physically located entirely within a single county shall be recorded only in that county, notwithstanding the fact that the common elements are not physically located entirely within that county.

(c) All instruments affecting title to units shall be recorded and taxed as in other real property transactions. However, no State or local tax may be imposed by reason of the execution or recordation of the declaration, bylaws, condominium plat, or any statement of condominium lien recorded pursuant to the provisions of § 11-110 of this title.

(d) The declaration, bylaws, and condominium plat shall be indexed in the grantor index under the name of the developer and under the name of the condominium. Subsequent amendments shall be indexed under the name of the condominium.

§ 11-102 - 1. Notice prior to conversion of residential property to condominium

(a) Giving of notice. --

(1) (i) Before a residential rental facility is subjected to a condominium regime, the owner, and the landlord of each tenant in possession of any portion of the residential rental facility as his residence, if other than the owner, shall give the tenant a notice in the form specified in subsection (f) of this section. The notice shall be given after registration with the Secretary of State under § 11-127 of this title and concurrently and together with any offer required to be given under § 11-136 of this title.

(ii) If an offer required to be given under § 11-136 of this title is not given to a tenant concurrently with the notice described in subparagraph (i) of this paragraph, the 180-day period that is triggered by receipt of the notice under this section does not begin until the tenant receives the purchase offer.

(2) The owner and the landlord, if other than the owner, shall inform in writing each tenant who first leases any portion of the premises as his residence after the giving of the notice required by this subsection that the notice has been given. The tenant shall be informed at or before the signing of lease or the taking of possession, whichever occurs first.

(3) A copy of the notice, together with a list of each tenant to whom the notice was given, shall be given to the Secretary of State at the time the notice is given to each tenant.

(b) Method of delivery. -- The notice and the purchase offer shall be considered to have been given to each tenant if delivered by hand to the tenant or mailed, certified mail, return receipt requested, postage prepaid, to the tenant's last-known address.

(c) Vacation of premises. -- A tenant leasing any portion of the residential rental facility as his residence at the time the notice referred to in subsection (a) of this section is given to him may not be required to vacate the premises prior to the expiration of 180 days from the giving of the notice except for:

(1) Breach of a covenant in his lease occurring before or after the giving of the notice;

(2) Nonpayment of rent occurring before or after the giving of the notice; or

(3) Failure of the tenant to vacate the premises at the time that is indicated by the tenant in a notice given to his landlord under subsection (e) of this section.

(d) Extension of lease term. -- The lease term of any tenant leasing any portion of the residential rental facility as his residence at the time the notice referred to in subsection (a) of this section is given to him and which lease term would ordinarily terminate during the 180-day period shall be extended until the expiration of the 180-day period. The extended term shall be at the same rent and on the same terms and conditions as were applicable on the last day of the lease term.

(e) Termination of lease. -- Any tenant leasing any portion of the residential rental facility as his residence at the time the notice referred to in subsection (a) of this section is given to him may terminate his lease, without penalty for termination upon at least 30 days' written notice to his landlord.

(f) Form of notice. -- The notice referred to in subsection (a) of this section shall be sufficient for the purposes of this section if it is in substantially the following form. As to rental facilities containing less than 10 units, "Section 2" of the notice is not required to be given.

"NOTICE OF INTENTION TO
CREATE A CONDOMINIUM

........... (Date)

This is to inform you that the rental facility known as
....................................... may be converted to a condominium
regime in accordance with the Maryland Condominium Act. You may be required to
move out of your residence after 180 days have passed from the date of this
notice, or in other words, after ............. (Date).

Section 1

Rights that apply to all tenants

If you are a tenant in this rental facility and you have not already given
notice that you intend to move, you have the following rights, provided you
have previously paid your rent and continue to pay your rent and abide by the
other conditions of your lease.

(1) You may remain in your residence on the same rent, terms, and
conditions of your existing lease until either the end of your lease term or
until ............. (Date) (the end of the 180-day period), whichever is
later. If your lease term ends during the 180-day period, it will be extended
on the same rent, terms, and conditions until ............. (Date) (the end
of the 180-day period). In addition, certain households may be entitled to
extend their leases beyond the 180 days as described in Section 2.

(2) You have the right to purchase your residence before it can be sold
publicly. A purchase offer describing your right to purchase is required to be
included with this notice. If a purchase offer is not included with this
notice, the 180-day period that you may remain in your residence does not
begin until you receive the purchase offer.

(3) If you do not choose to purchase your unit, and the annual income
for all present members of your household did not exceed ............. (the
applicable income eligibility figure or figures for the appropriate area) for
20...., you are entitled to receive $ 375 when you move out of your residence.
You are also entitled to be reimbursed for moving expenses as defined in the
Maryland Condominium Act over $ 375 up to $ 750 which are actually and
reasonably incurred. If the annual income for all present members of your
household did exceed ............. (the applicable income eligibility figure
or figures for the appropriate area) for 20...., you are entitled to be
reimbursed up to $ 750 for moving expenses as defined in the Maryland
Condominium Act actually and reasonably incurred. To receive reimbursement for
moving expenses, you must make a written request, accompanied by reasonable
evidence of your expenses, within 30 days after you move. You are entitled to
be reimbursed within 30 days after your request has been received.

(4) If you want to move out of your residence before the end of the
180-day period or the end of your lease, you may cancel your lease without
penalty by giving at least 30 days prior written notice. However, once you
give notice of when you intend to move, you will not have the right to remain
in your residence beyond that date.

Section 2

Right to 3-year lease extension or 3-month rent payment
for certain individuals with disabilities and senior citizens

The developer who converts this rental facility to a condominium must
offer extended leases to qualified households for up to 20 percent of the
units in the rental facility. Households which receive extended leases will
have the right to continue renting their residences for at least 3 years from
the date of this notice. A household may cancel an extended lease by giving 3
months' written notice if more than 1 year remains on the lease, and 1 month's
written notice if less than 1 year remains on the lease.

Rents under these extended leases may only be increased once a year and
are limited by increases in the cost of living index. Read the enclosed lease
to learn the additional rights and responsibilities of tenants under extended
leases.

In determining whether your household qualifies for an extended lease,
the following definitions apply:

(1) (i) "Disability" means:

1. A physical or mental impairment that substantially limits
one or more of an individual's major life activities; or

2. A record of having a physical or mental impairment that
substantially limits one or more of an individual's major life activities.

(ii) "Disability" does not include the current illegal use of or
addiction to:

1. A controlled dangerous substance as defined in § 5-101 of
the Criminal Law Article; or

2. A controlled substance as defined in 21 U.S.C. § 802.

(2) "Senior citizen" means a person who is at least 62 years old on
the date of this notice.

(3) "Annual income" means the total income from all sources for all
present members of your household for the income tax year immediately
preceding the year in which this notice is issued but shall not include
unreimbursed medical expenses if the tenant provides reasonable evidence of
the unreimbursed medical expenses or consents in writing to authorize
disclosure of relevant information regarding medical expense reimbursement at
the time of applying for an extended lease. "Total income" means the same as
"gross income" as defined in § 9-104(a)(7) of the Tax - Property Article.

(4) "Unreimbursed medical expenses" means the cost of medical
expenses not otherwise paid for by insurance or some other third party,
including medical and hospital insurance premiums, co-payments, and
deductibles; Medicare A and B premiums; prescription medications; dental care;
vision care; and nursing care provided at home or in a nursing home or home
for the aged.

To qualify for an extended lease you must meet all of the following
criteria:

(1) A member of the household must be an individual with a
disability or a senior citizen and must be living in your unit as of the date
of this notice and must have been a member of your household for at least 12
months preceding the date of this notice; and

(2) Annual income for all present members of your household must
not have exceeded ............. (the applicable income eligibility figure or
figures for the appropriate area) for 20....; and

(3) You must be current in your rental payments and otherwise in
good standing under your existing lease.

If you meet all of these qualifications and desire an extended
lease, then you must complete the enclosed form and execute the enclosed lease
and return them. The completed form and executed lease must be received at the
office listed below within 60 days of the date of this notice, or in other
words, by ............. (Date). If your completed form and executed lease are
not received within that time, you will not be entitled to an extended lease.

If the number of qualified households requesting extended
leases exceeds the 20 percent limitation, priority will be given to qualified
households who have lived in the rental facility for the longest time.

Due to the 20 percent limitation your application for an
extended lease must be processed prior to your lease becoming final. Your
lease will become final if it is determined that your household is qualified
and falls within the 20 percent limitation.

If you return the enclosed form and lease by .............
(Date) you will be notified within 75 days of the date of this notice, or in
other words, by ............. (Date), whether you are qualified and whether
your household falls within the 20 percent limitation.

You may apply for an extended lease and, at the same time,
choose to purchase your unit. If you apply for and receive an extended lease,
your purchase contract will be void. If you do not receive an extended lease,
your purchase contract will be effective and you will be obligated to buy your
unit.

If you qualify for an extended lease, but due to the 20 percent
limitation, your lease is not finalized, the developer must pay you an amount
equal to 3 months rent within 15 days after you move. You are also entitled to
up to $ 750 reimbursement for your moving expenses, as described in Section 1.

If you qualify for an extended lease, but do not want one, you
are also entitled to both the moving expense reimbursement previously
described, and the payment equal to 3 months' rent. In order to receive the 3
month rent payment, you must complete and return the enclosed form within 60
days of the date of this notice or by ............. (Date), but you should
not execute the enclosed lease.

All application forms, executed leases, and moving expense
requests should be addressed or delivered to:

.................

.................

.................."

(g) Affirmation of developer. -- A declaration may not be received for
record unless there is attached thereto an affirmation of the developer in
substantially the following form:

"I hereby affirm under penalty of perjury that the notice requirements of §
11-102.1 of the Real Property Article, if applicable, have been fulfilled.

Developer

By ..........."

(h) Failure to give notice is defense. -- Failure of a landlord or owner to
give notice as required by this section is a defense to an action for
possession.

(i) Effect on condominium regime appropriately established. -- Failure to
fulfill the provisions of this section does not affect the validity of a
condominium regime otherwise established in accordance with the provisions of
this title.

(j) Applicability to non-renewing tenant. -- This section does not apply to
any tenant whose lease term expires during the 180-day period and who has
given notice of his intent not to renew the lease prior to the giving of the
notice required by subsection (a) of this section.

(k) Waiver of rights; month-to-month tenant. --

(1) A tenant may not waive his rights under this section except as
provided under § 11-137 of this title.

(2) At the expiration of the 180-day period a tenant shall become a
tenant from month-to-month subject to the same rent, terms, and conditions as
those existing at the giving of the notice required by subsection (a) of this
section, if the tenant's initial lease has expired and the tenant has not:

(i) Entered into a new lease;

(ii) Vacated under subsection (e) of this section; or

(iii) Been notified in accordance with applicable law prior to the
expiration of the 180-day period that he must vacate at the end of that period.

§ 11-102 - 2. Termination of leases

(a) "Terminate" defined. -- In this section, "terminate" means:

(1) A giving of notice terminating a periodic tenancy of a dwelling within a residential rental facility; or

(2) The failure to renew or continue an existing lease for a dwelling in a residential rental facility upon its expiration.

(b) Termination without notice prohibited. -- The owner of a residential facility may not terminate the lease of any tenant occupying any portion of the owner's residential facility in order to avoid such owner's obligation to give the tenant the notice required under § 11-102.1 of this title.

(c) List of terminated leases required in application for registration. -- The application for registration for a residential rental facility under § 11-127 of this title shall include, to the extent reasonably available, a list of all tenants whose leases were terminated during the 180-day period prior to the filing of the application for registration.

(d) Rejection of application for violation. -- After an agency hearing, if the Secretary of State determines that an owner has violated subsection (b) of this section within 180 days prior to filing an application for registration, the Secretary of State shall reject the application for registration filed by the owner.

(e) Revocation of application for violation. -- After a public offering statement has been registered, if the Secretary of State determines that an owner has violated subsection (b) of this section during the 12-month period prior to the time units are offered for sale, the Secretary of State shall revoke the registration.

(f) Determination of violation. -- In determining whether an owner has violated subsection (b) of this section, the Secretary of State shall consider:

(1) (i) Whether the termination was due to the nonpayment of rent;

(ii) Whether the termination was due to a breach of the lease; or

(iii) Whether the owner intended at the time of termination to convert the residential facility to a condominium; and

(2) Any other factors as the Secretary of State deems appropriate.

(g) Correction of violation. -- If an application for registration is rejected by the Secretary of State pursuant to subsection (d) of this section, or if a registration is revoked by the Secretary of State pursuant to subsection (e) of this section, the Secretary of State may not accept the application or reinstate the registration unless and until the owner has tendered to every tenant whose lease was terminated in violation of subsection (a) of this section an award for reasonable expenses.