If your Maryland home is in a homeowners association, there’s a paperwork step that catches a lot of sellers off guard. Before the sale can be enforced against the buyer, you have to provide a specific set of association documents and disclosures. Do it late or incompletely, and the buyer may get a window to walk away. If the house is in 21157 or 21158 and you’re dealing with HOA resale documents, see selling a house in Westminster.
I’m Evan Weissman. I buy houses across Maryland, many of them in HOA communities. This article explains what the Maryland Homeowners Association Act requires, based on the statute, so you can get ahead of it. Note that this covers homeowners associations for houses and townhomes.
The rule in Section 11B-106
Maryland Real Property Section 11B-106 applies to the resale of a lot in a development with a homeowners association, when the buyer intends to live in it or rent it out. Under subsection (a), the contract isn’t enforceable by the seller unless:
- The buyer receives the required disclosures on or before signing the contract, or within 20 calendar days after signing.
- The buyer receives notice of any change in mandatory fees of more than 10%, and any other substantial and material change, once the seller learns of it.
- The contract includes a conspicuous notice, in bold and underlined type, explaining the Act and the buyer’s rights.
You can read the full text on the General Assembly site.
What goes in the package
Subsection (b) lists what the seller has to provide in writing:
- A statement of whether the lot is in a development
- The current monthly fees or assessments
- The total fees, assessments, and other charges for the HOA’s prior fiscal year
- Whether any fees or charges against the lot are delinquent
- The name, address, and phone number of the management agent or authorized officer
- Whether the owner has actual knowledge of unsatisfied judgments or pending lawsuits against the HOA
- Whether the owner knows of pending claims, covenant violation actions, or notices of default against the lot
- Copies of the articles of incorporation, declaration, recorded covenants and restrictions, and the bylaws and rules
Most of that comes from the association. A few items, like what you actually know about violations against your lot, come from you.
The buyer’s right to cancel
The required contract notice explains this. If the buyer hasn’t received all the information at least 5 calendar days before signing, they have 5 calendar days after receiving it to cancel the contract in writing, without giving a reason. If the seller later gives notice of a fee change above 10% or another substantial change that hurts the buyer, the buyer has 3 calendar days to cancel.
A buyer who cancels gets their deposit back. The seller can keep the lesser of the cost of reproducing the documents or $100 if the buyer doesn’t return them.
What this means for you: the earlier the buyer has the full package, the sooner that cancel window closes. Delivering it before the contract is signed is the cleanest approach.
How to request it and what it costs
Under subsection (c), the HOA or its management agent has to provide the information within 20 days of a written request from the owner and payment of a reasonable fee. The statute caps that fee and has the Department of Housing and Community Development adjust the cap every 2 years based on inflation, with the current figure posted on DHCD’s website.
The association can also charge up to these extra amounts:
| Extra service | Maximum fee |
|---|---|
| Inspection of the lot, if the governing documents require it | $50 |
| Delivery within 14 days of the request | $50 |
| Delivery within one week of the request | $100 |
Practical tip: request the package as soon as you decide to sell. Twenty days can feel like forever once you have a buyer waiting.
After the sale closes
Subsection (d) adds one more duty. Within 30 calendar days after the transfer, the seller has to notify the HOA. The notice should include, to the extent reasonably available, the buyer’s name and address, your forwarding address, the transfer date, any mortgage lender’s name and address, and how outstanding fees were split. Title companies often handle this, but confirm who’s doing it.
Common problems I see
- Late ordering. The seller waits until after the contract, and the buyer’s cancel window stays open longer.
- Open violations. The package or an inspection reveals an unapproved fence, shed, or paint color. Buyers may ask you to fix it or give a credit.
- Special assessments. A recently approved assessment for a roof or road project can change a buyer’s math.
- Unpaid dues. Delinquent amounts usually have to be paid at settlement. My article on selling while behind on HOA dues covers that situation.
- More than one association. Some communities have a master association and a sub-association, each with its own package.
Does a cash sale change any of this?
A cash buyer who intends to rent out the home still fits the statute’s description, so the HOA disclosures generally still apply. Some investors are comfortable moving quickly once they have the documents. If you’re selling to me, I’ll ask for the package early so it doesn’t hold up closing. My page on how I buy houses explains the rest of the process.
How long does an HOA have to provide resale documents in Maryland?
Within 20 days after the owner’s written request and payment of the fee. Faster delivery can cost extra.
Can a buyer cancel after getting the HOA documents?
If the buyer didn’t have all the information at least 5 days before signing, they can cancel in writing within 5 calendar days after receiving it.
How much can an HOA charge for a resale package in Maryland?
The statute caps the base fee and has DHCD adjust it every 2 years. Inspection and rush delivery fees are capped separately.
Do I have to tell the HOA after I sell?
Yes. The seller must notify the association within 30 calendar days after the transfer.
What if my HOA has violations against my lot?
The disclosure asks whether you know of pending violation actions. Disclose what you know, and expect the buyer to ask how it will be resolved.
Talk through your situation
If you’re selling a home in an HOA and want help sorting out the paperwork or the violations, call or text me at (410) 498-7473. I’ll tell you how I’d handle it in a sale to me.