Maryland Condo Act vs HOA Act: Which Law Governs Your Community

Maryland Condo Act vs HOA Act: Which Law Governs Your Community

Maryland separates the regulation of condominiums and homeowner associations into two distinct legal frameworks. Condominiums formed under Maryland law operate under the Maryland Condominium Act, found in Title 11 of the Real Property Article of the Maryland Code. Homeowner associations that are not condominiums typically fall under the Maryland Homeowners Association Act, codified in Title 11B of the Real Property Article. Your community's founding documents and property structure determine which statute applies, and the distinction affects everything from disclosure requirements to lien enforcement.

The Maryland Condominium Act

The Maryland Condominium Act governs condominiums created by a declaration of condominium regime. A condominium in Maryland is a property regime in which owners hold title to individual units and share ownership of common elements as tenants in common. If your community was established by a declaration that creates unit ownership and shared common areas under the condominium framework, the Condominium Act applies.

The Act defines a condominium as real property subject to a declaration that establishes ownership of units and common elements. It covers the creation of the condominium regime, the powers and duties of the council of unit owners, voting rights, resale disclosure requirements, and lien procedures. The statute requires that your declaration, bylaws, and plat be recorded in the land records of the county where the property is located.

Maryland courts have held that the Condominium Act controls when a property meets the statutory definition of a condominium, even if the community calls itself a homeowner association in informal documents. The legal structure in the recorded declaration determines which law applies, not the name used in newsletters or signage.

The Maryland Homeowners Association Act

The Maryland Homeowners Association Act applies to common interest communities that are not condominiums. This typically includes planned communities in which owners hold title to individual lots and share ownership or access rights to common areas through membership in a homeowners association. The Act defines a homeowners association as a nonprofit organization that operates under a declaration of covenants and has the authority to impose assessments that become liens on the properties.

The Homeowners Association Act became effective October 1, 2008, and it brought Maryland into alignment with other states that had enacted comprehensive HOA statutes. Before 2008, many HOA governance issues were handled through common law and the terms of individual declarations. The 2008 Act codified duties of disclosure, meeting notice requirements, record access rights, and lien procedures.

Key provisions of the Homeowners Association Act include mandatory annual audits or financial reviews for associations with 15 or more lots, resale disclosure requirements similar to those in the Condominium Act, procedures for meetings and voting, and rules for the creation and enforcement of liens for unpaid assessments. If your community is a traditional subdivision with individual lots and a mandatory membership association, the Homeowners Association Act governs your operations.

How to Determine Which Law Applies

You identify the governing statute by examining your community's recorded declaration. Pull the original declaration from the land records office in your county or review the certified copy that your association should maintain in its files. Look for the language that describes the property interest each owner holds.

If the declaration states that owners hold title to a unit and an undivided interest in the common elements as tenants in common, and if it references the creation of a condominium regime, the Condominium Act applies. If the declaration describes owners as holding fee simple title to individual lots and includes covenants that create a mandatory membership association with assessment authority, the Homeowners Association Act applies.

Some older communities in Maryland were formed before either statute existed. These communities may operate under the original covenants and common law principles. However, many have since amended their declarations to bring themselves under one of the two modern statutes. If your community was formed before 2008 and has not amended its declaration, consult your attorney to determine which body of law controls.

A practical test is to look at your deed. If your deed conveys a unit number and an interest in common elements, you own in a condominium. If your deed conveys a lot number and a parcel described by metes and bounds, you likely own in an HOA.

Overlap and Differences Between the Two Acts

Both the Condominium Act and the Homeowners Association Act require your board to provide resale packets to prospective buyers, maintain financial records, hold annual meetings, and enforce payment of assessments. Both statutes grant your association the power to place liens on properties for unpaid assessments and to foreclose on those liens under certain conditions.

The key differences lie in the details of disclosure, voting, and the creation of the regime. The Condominium Act requires a plat that shows the layout of units and common elements. The Homeowners Association Act does not require a condominium plat but does require that the declaration describe the common areas and the lots subject to the covenants. The Condominium Act has specific provisions for phased development and the declarant's rights during the development period. The Homeowners Association Act includes similar phased development provisions but uses different terminology and procedures.

Another difference is the treatment of amendments. Under the Condominium Act, amendments to the declaration typically require the consent of a specified percentage of unit owners, often 80 percent or more depending on the nature of the amendment. Under the Homeowners Association Act, amendment procedures are set by the declaration itself, and the statute provides a default rule only if the declaration is silent.

Both statutes require your board to provide owners with access to association records, but the procedures and timelines differ slightly. The Condominium Act states that records must be made available for inspection and copying at reasonable times and locations. The Homeowners Association Act includes a specific requirement that your board respond to a written request for records within 21 days.

A Real Maryland Example

In Montgomery County, the Fallsgrove community operates as a master planned development with a homeowners association governing over 2,000 lots. The Fallsgrove Community Association was formed in the late 1990s under a declaration of covenants that predated the 2008 Homeowners Association Act. When the Act took effect, the board amended the declaration to incorporate the new statutory requirements for financial reporting, resale disclosures, and lien procedures. The community now operates fully under Title 11B.

By contrast, the Chase Condominium in Bethesda was established in 1985 under a declaration that created a condominium regime with 120 units and shared common elements including a parking garage and rooftop terrace. The Chase operates under the Maryland Condominium Act, and its council of unit owners must comply with the unit owner voting requirements and resale packet provisions specific to condominiums.

These two communities are both in Montgomery County, both have mandatory associations, and both collect assessments. But the legal framework governing their operations differs because one is a condominium and the other is a homeowner association.

State Agencies and Enforcement

Maryland does not have a single state agency dedicated to HOA or condominium oversight. The Maryland Attorney General's office handles consumer protection matters and may investigate complaints related to fraud or deceptive practices by developers or associations. The Maryland Department of Labor handles complaints related to real estate licensing and disclosure violations.

Disputes between associations and owners are typically resolved through the courts. Maryland circuit courts have jurisdiction over breach of contract claims, lien foreclosures, and challenges to board decisions. Some counties offer mediation programs for HOA disputes, but participation is usually voluntary.

The Maryland Real Estate Commission regulates real estate professionals who manage associations, but it does not regulate the associations themselves. If your community hires a licensed property management company, that company must hold a current license and comply with commission rules, but those rules do not impose additional governance requirements on your board.

What Your Board Should Do Now

Pull your recorded declaration and identify which statute governs your community. If you are uncertain, note the language your declaration uses to describe ownership interests and look for references to either a condominium regime or a homeowners association. Compare the terms in your declaration to the definitions in the Condominium Act and the Homeowners Association Act.

Once you have identified the governing statute, review your current practices to confirm compliance. Check whether your board is following the meeting notice requirements, record access procedures, and financial reporting rules in the applicable Act. Many boards assume they are complying with state law when in fact they are following outdated procedures or relying on provisions that do not appear in the statute.

If your community was formed before the relevant statute took effect, determine whether your declaration has been amended to incorporate the statutory requirements. If not, consider whether an amendment is advisable. Consult your attorney for your specific situation to evaluate the costs and benefits of bringing your declaration into alignment with current law.

Create a compliance checklist that lists every requirement in the governing statute and cross references it with your current board policies. This checklist should cover annual meeting notices, financial statement distribution, resale packet preparation, record retention, and lien procedures. Update the checklist annually as the legislature amends the statutes.

How Manorway Supports Compliance

Manorway helps boards track statutory requirements and maintain records that satisfy both the Condominium Act and the Homeowners Association Act. You can store your declaration, bylaws, and amendments in a secure document library, set reminders for annual meeting notices and financial statement deadlines, and generate compliance checklists tailored to the statute that governs your community.

When your board uses an AI assisted platform to manage governance tasks, you reduce the risk of missing a statutory deadline or failing to provide required disclosures. Manorway does not replace your attorney, but it organizes the information your attorney needs to advise you and creates an audit trail that demonstrates your board's good faith efforts to comply with Maryland law.