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NEW MARYLAND LAWS
IMPACT COMMUNITY ASSOCIATIONS
Owner Access to Books
and Records
One new Maryland law (Senate Bill 567)
establishes uniform standards for condominiums, homeowners associations, and
housing cooperatives for making association books and records available for
inspection and copying by owners. Previously, the availability of such
records varied depending on the type of community association.
The new law requires disclosure of all
books and records except to the extent they concern personnel records; an
individual's medical records; an individual's financial records; records
relating to business transactions that are currently in negotiation; the
written advice of legal counsel; or minutes of a closed meeting of the board
of directors or other governing body.
This new books and records disclosure
law follows the existing law for homeowners associations with the additional
exception for minutes of closed meetings.
Electronic Notice and
Voting
The 2004 Maryland General Assembly
also passed a new law (Senate Bill 568) which permits condominiums,
homeowners associations, and housing cooperatives to provide meeting notices
and eliver information to owners by electronic transmission where certain
conditions are met. Such transmissions must be capable of creating a
record which may be retained, retrieved, reviewed and reproduced in paper
format by the recipient.
Display of United
States Flag
Another new law (House Bill 1017) will
preempt association prohibitions on display of the United States flag.
An association may not prohibit or unduly restrict the display of one
portable, removable United States flag. However, an association may
still adopt reasonable rules regarding the placement and manner of display
of flags and flagpoles.
These laws ill become effective
October 1, 2004.
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MARYLAND COURT OF APPEALS RULES CONDO
OWNER DID NOT ACQUIRE EXCLUSIVE USE OF PARKING SPACE
In Jurgensen v. The New Phoenix Atlantic
Condominium, the Maryland Court of Appeals ruled that a condominium unit
owner did not acquire exclusive use of a general common element parking
space.
In 1075 the New Phoenix Atlantic Condominium was
established with 36 residential units. The original recorded plats for the
Ocean City, Maryland Condominium showed 31 parking spaces, each designated
as a limited common element for the exclusive use of a specific unit.
Unit 505 was one of five units without a designated
parking space. Prior to the first transfer of Unit 505, the
developer created two new spaces, identified as #32 and #33.
Although a sign was posted on space #32 designating it as parking for Unit
505, the condominium declaration was never amended to reflect such
designation.
From 1976 to 1984, parking space #32 was used by the
owner of Unit 505. In 1984, Unit 505 was purchased by Harold
Jurgensen, who used parking space #32 until 1999, when the condominium
reconfigured a portion of the parking area, thereby reducing the size of
space #32. Jurgensen filed suit against the condominium, contending
that he had exclusive rights to parking space #32.
No Exclusive Right to Parking Space
After the trial court and the Court of Special Appeals
ruled in favor of the condominium, the Court of Appeals determined that
Jurgensen had no exclusive right to the parking space. The Court
relied on the Maryland Condominium Act and the condominium declaration in
concluding that redesignation of general common elements as limited common
elements required amendment to the declaration with the written consent of
every unit owner and lender. Since unanimous written consent to a
declaration amendment was never given, exclusive use of the parking space
was never assigned to the owner of Unit 505 as a limited common element.
The Court rejected the owner's claim that he had
acquired rights to space #32 by prescriptive easement -- where one makes
an adverse, exclusive and uninterrupted use of another's real property for
twenty years. The climiyrf The responsibility for bringing the storm water
facilities to good working condition and confirming the location and ownership
of the facilities rests with the association. Although the association must bear the cost of inspection, repair and
transfer,The Court concluded that use of the space was not adverse because the
condominium gave permission to use the space.
The Court also rejected Jurgensen's claim that the
condominium was barred from asserting that parking space #32 was a general
common element because he and the prior owner of Unit 505 relied on the
representations and actions of the developer and the condominium board of
directors that allowed exclusive use of the space.
Since the condominium declaration and plats were readily available to Jurgensen,
the appeals court noted that Jurgensen could have discovered that space #32 was
never designated as a limited common element.
Parking Space Can be Eliminated
The Court concluded that none of the condominium's actions could reasonably be
relied on to believe that parking space #32 would remain permanently
unchanged in its dimensions or that it would always be for exclusive use by the
owner of Unit 505. Therefore, the condominium board of directors had the
authority to reconfigure the condominium general common element parking area and
eliminate parking space #32.
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MARYLAND APPEALS
COURT RULES FENCES WHICH INTERFERE WITH RIGHT-OF-WAY EASEMENT MUST BE REMOVED
In 1977, the Millers purchased land adjacent to
property owned by the Kirkpatricks in Dorchester County, Maryland.
Included in the deed was an express grant of a right-of-way easement for
an access road twenty f eet in width, for the benefit of Miller for
ingress and egress of persons and vehicles over Kirkpatrick's property. In
2000, Kirkpatrick erected two parallel barbed-wire fences twelve feet
apart along each side of the road within the right-of-way easement.
The fences prevented Miller from using 40 percent of the road and Miller
filed suit to have the fences removed.
In Miller v. Kirkpatrick,
the trial court concluded that, although an express right-of-way easement
twenty feet in width had been created by deed for the benefit of Miller,
Kirkpatrick had a right to build the fences on his land as long as it did
not unreasonably interfere with Miller's use of the right-of-way.
Since Miller could still use the road, the trial court found there was no
interference and denied Miller's request to have the fences removed.
The Court of Special Appeals affirmed the trial court decision and Miller
appealed to the Court of Appeals.
The Court of Appeals disagreed with the lower courts'
reasoning, explaining that it was improper to have looked at whether the
Kirkpatrick's modification unreasonably interfered with Miller's use of
the road. Instead, the Court ruled that Kirkpatrick as a grantor of
an express easement, may not unilaterally modify or reduce the easement in
any manner that is inconsistent with the intention of the parties based
upon the language of the deed. The Court further concluded that any
permanent interference within a right of way that obstructs an express
easement for ingress and egress is unlawful and the fences must be
removed.
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FCC AFFIRMS BAN ON ASSOCIATION PRE-APPROVAL
REQUIREMENT FOR ANTENNA INSTALLATION
The Federal Communications Commission ("FCC") has upheld a
prior FCC Cable Services Bureau decision prohibiting a homeowners association
pre-approval requirements for the installation of satellite dishes and other
protected antennas on a homeowner's property or exclusive use area. In
The Matter of Victor Frankfurt, the FCC ruled that such restrictions
unreasonably delay installation of antennas and that a pre-approval requirement
can only be applied to further legitimate safety or historic preservation goals.
In addition, the FCC reaffirmed that an association which
requires general compliance with the National Electric Code is unenforceable
since it is too vague for antenna users to know what is required. Similarly,
association restrictions that a homeowner comply with "all ordinances, laws,
regulations and industry standards" is unenforceable.
However, the FCC left open the possibility that an
association could adopt an installation requirement by specifying compliance
with a particular provision and the specific penalties for non-compliance.
Any such installation requirements must specify how the requirement is
necessary to achieve the association's articulated safety objective and
must be no more burdensome than necessary to achieve that objective.
While prior FCC staff rulings have invalidated "unreasonable"
restrictions on antenna installations, the Frankfurt decision is the
first time the full FCC has addressed the applicability of the FCC antenna rule.
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MARYLAND APPEALS COURT RULES ASSOCIATION IS NOT
LIABLE FOR INJURIES ON ICY PATH
The Maryland Court of Appeals has ruled that a homeowners
association is not liable for injuries due to a slip and fall on an icy path
where the association had no actual or constructive notice of the specific
dangerous condition. Constructive notice exists when a dangerous condition could
have been discovered by exercise of ordinary care.
Margaret Spoon was injured while walking on a paved pathway
in a wooded stream valley behind her condominium when she slipped and fell on
ice. Spoon filed suite against the condominium association, its management
company and Columbia Association, Inc., which owned the property where the
injury occurred, for negligently allowing ice to accumulate and remain on the
pathway. Since water from the nearby condominium parking lot was intended
to flow down a drainage ditch and over the pathway into a stream, she contended
that there was reason to know that water might accumulate and freeze on the
pathway.
In Deering Woods Condominium Association, et. al. v. Spoon,
the Maryland Court of Appeals concluded that there was no evidence that Columbia
Association knew or should have known of ice on the pathway sufficiently prior
to the accident to create a duty to remove the ice or have the surface treated
by sanding or salting. For approximately 20 winters, there were no
complaints of ice or accidents at the location of the injury.
Columbia Association had removed the most recent snowfalls on
the pathway the day before the accident. The Court observed that only a
continuous inspection of the area would have discovered the icy condition on the
pathway and concluded that there was no duty to make continuous inspections.
The Court similarly concluded that the neighboring
condominium association and its management agent were not liable for the injury
resulting from the ice since they had no actual or constructive notice that
water flowing from the drainage ditch and across the path might cause the
dangerous condition.
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