May 20, 2013

Governor Martin O’Malley has signed into law legislation passed by the Maryland General Assembly that amends the Maryland Contract Lien Act as it relates to the foreclosure of liens by condominiums and homeowners associations.  The new law  modifies Section 14-204 of the Real Property Article of the Maryland Annotated Code to prohibit condominiums and homeowners associations from foreclosing on liens for anything other than delinquent periodic or special assessments; meaning that unpaid fines may not be the basis for a lien foreclosure.  Additionally, the new law requires that related costs and fees be limited to “reasonable costs and attorney’s fees directly related to the filing of the lien and not exceeding the amount of the delinquent assessments.”  Read More……