Maryland Condominium Act: Everything you need to know

Overview of the Maryland Condominium Act

The Maryland Condominium Act governs condominium associations in the state. The Act was written to provide a clear legal framework for condominium living, outlining the rights of owners, the duties of condominium associations, and the rules for managing common property. By setting consistent standards, the Maryland Condominium Act helps condominium boards and owners understand their roles.

At its core, the Act defines how a condominium is legally formed. A developer must record a declaration, bylaws, and a condominium plat. Once formed, the council of unit owners becomes the legal entity responsible for managing the community. The Act gives the council authority to elect a board, adopt rules, maintain records, collect assessments, and maintain common property.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Key provisions

Key provisions of the Maryland Condominium Act cover:

• Disclosure requirements: Sellers must provide prospective buyers with resale certificates, governing documents, financial statements, and other disclosures within a specified period before closing.
   
• Insurance requirements: Condominium insurance programs must include coverage for common elements, while owners may have responsibilities for damage that originates in their unit.
   
• Assessments and fees: The Act outlines how regular and special assessments can be imposed to fund operations, reserves, and major repairs.
   
• Governance and meetings: Boards must hold meetings, provide notices, and maintain minutes so owners can remain informed about association decisions.
   
• Dispute resolution: The Act provides procedures to resolve disagreements between owners and associations through structured processes.
   
• Amendments to bylaws: Rules are included for how condominium bylaws can be changed when needed.
   
• Termination: The Act offers guidance for the legal steps involved in dissolving or terminating a condominium.

Because Maryland condominiums vary in size and complexity, the Act provides a flexible structure that associations can adapt through their governing documents.
 

Rights and responsibilities under the Act

The Maryland Condominium Act defines important rights for both boards and owners in Maryland. Owners have the right to access association records, vote in elections, participate in meetings, and receive notice of rule changes or special assessments. They are also protected by disclosure laws when buying into a condominium, which require sellers to share governing documents, budgets, and other information so buyers understand the financial health of the association before closing.

The Act also sets responsibilities for condominium associations. Associations are tasked with maintaining common elements, collecting assessments, managing financials, and securing insurance coverage. Boards of directors, elected by the owners, act on behalf of the association. While day-to-day decisions may be delegated to a property management company, the board remains ultimately responsible for governance and compliance with the Act.
 

Recent changes and future implications

The Maryland Condominium Act saw several updates in 2024 and 2025 that affect how communities operate. Starting October 1, 2024, the threshold for amending declarations when the developer no longer owns units was lowered from 80% of owners to 66.67%, making it easier for associations to update governing documents. That same year, boards were also given authority to grant a license for up to 3 years on common elements necessary for installing or powering electric vehicle recharging equipment.

In 2025, legislation updated reserve study and reserve funding requirements: boards must adopt a reserve funding plan and make the required annual deposits, and the time to reach the plan’s recommended funding level is five fiscal years. Resale contracts must also include a clear written notice explaining this responsibility to buyers. For boards, these changes mean updating procedures and leaning on attorneys or management partners to stay compliant, while owners should be aware of how assessments, insurance, and reserve planning may affect their costs.
 

Insurance obligations under the Maryland Condominium Act

Under the Maryland Condominium Act, every condominium association must maintain property and liability insurance for the community’s common elements. That coverage typically applies to shared spaces like roofs, lobbies, elevators, hallways, and utility systems. The law also explains how deductibles are handled if damage starts inside a unit. In those cases, the unit owner may be responsible for the deductible amount, up to the maximum limit allowed by statute.

Boards are also responsible for keeping records of insurance policies and making them available to unit owners upon request. Owners are encouraged to carry individual policies (commonly called “HO-6” policies) to cover the interior of their units and personal belongings. While not mandated by the Act, this coverage protects against risks that the association’s master policy does not cover.
 

Special assessments and reserve funding

Under the Maryland Condominium Act, boards may levy a special assessment when the association doesn’t have enough reserve funds to cover a major repair or unexpected cost. A special assessment is a one-time charge added to regular condo fees, often used for projects like roof replacements, structural work, or emergency repairs.

At the same time, the Act highlights the importance of strong reserve funding. By steadily contributing to a reserve account through regular assessments, communities can spread big costs over time and avoid sudden financial surprises. Reserve funding gives owners more predictability in their household budgets and helps boards keep the property well-maintained. Reviewing reserve plans regularly and adjusting contributions when needed is one of the best tools boards have to prepare for the future.
 

About FirstService Residential

At FirstService Residential, we work closely with condominium associations across Maryland to support compliance with the Maryland Condominium Act and other HOA laws. Our teams provide financial management, vendor coordination, maintenance planning, and administrative support, all while keeping associations informed about legislative updates that may affect their community.

We combine local expertise with national resources, giving Maryland condominium boards access to proven best practices in governance, compliance, and community operations. Contact FirstService Residential today to learn how our team can support your board and your community.