In Maryland, your document review period depends on the type of association. These are calendar days, not business days, so they include weekends and holidays: Condominiums (Resale): Under MD Code, Real Property § 11-135, buyers have 7 calendar days to review the resale package. Homeowners Associations (HOA): Under MD Code, Real Property § 11B-106, buyers have 5 calendar days to review the disclosure packet. Note on the "12-Lot Rule": If you are buying a new construction lot in a development with more than 12 lots, the developer is held to stricter disclosure standards under MD Code, Real Property § 11B-105. However, your right to cancel remains 5 calendar days from the date you receive the full information. New Construction: If you are buying a brand-new condo from a developer, under MD Code, Real Property § 11-126(e)(1), you have a much longer 15-calendar-day period to review the public offering statement.

Following the collapse of the Champlain Towers condo in Surfside, FL in 2021, Maryland, like many other states, enacted a law mandating that associations perform reserve studies for all residential condos and HOAs responsible for common areas with an initial purchase cost of at least $10,000. Condos and HOAs subject to the law are now legally required to: Conduct a Professional Reserve Study: Associations must have a reserve study conducted by a licensed professional who has prepared at least 30 reserve studies for the applicable type of community within the prior three calendar years. This study must be updated every five years. Beyond just having a study, boards must now prepare a formal funding plan that itemizes how they will reach the recommended reserve levels. Mandatory Funding: Associations can no longer choose not to fund their reserves unless a financial hardship declaration is approved by a super-majority of the board. They must now include the reserve study's recommended funding levels directly in their annual budgets. Why this matters for buyers: If you are buying in an older building that hasn't followed these rules, you should research whether to expect a massive increase in monthly dues or a large special assessment as the association plays catch-up to meet state law.

When reviewing Maryland disclosure packages, certain indicators suggest a higher financial or legal risk: Non-Compliance with Reserve Funding: Under Maryland’s updated standards, if an association cannot produce a current reserve study (less than 5 years old) or a formal funding plan, it is in violation of state law. This is a significant red flag that often precedes a massive fee hike. High Delinquency Rates: If more than 10% of the owners are delinquent in paying their assessments, it can jeopardize the association’s ability to secure common area insurance or even prevent you from getting a mortgage, as many conventional lenders will refuse to underwrite loans in troubled buildings. Pending Litigation: While common in larger associations, you should look for lawsuits involving structural defects or disputes with the developer. In Maryland, the barrier to entry for lawsuits is relatively low, but litigation can lead to special assessments to cover legal fees. Unclear Maintenance Responsibilities: Maryland associations vary wildly on “who owns what." A major red flag is a lack of clarity in the Bylaws regarding whether the association or the unit owner is responsible for expensive items like windows, sliding glass doors, or HVAC components. Restrictive Rental Caps: Many Maryland HOAs and condos have implemented stricter rental caps recently. If you plan to use the property as an investment, verify that the current rental waitlist isn't years long.