Maryland HOA Laws 2026: Maryland Homeowners Association Act (Md. Code, Real Prop. § 11B-101)

Maryland's Homeowners Association Act (Md. Code, Real Property §§ 11B-101 through 11B-116) governs planned community HOAs in the state. Maryland condominiums are governed separately under the Maryland Condominium Act (Md. Code, Real Property §§ 11-101 et seq.). Both statutes place a strong emphasis on resale disclosure and buyer protections.

Resale Disclosure: Maryland's Strongest HOA Provision

Maryland § 11B-106 requires that before a home in an HOA is sold, the seller must provide the buyer with a "Homeowners Association Disclosure" that includes: a copy of the CC&Rs, bylaws, and rules; the current budget and financial statements; a statement of any outstanding assessments or liens on the property; and information about any pending litigation involving the association. The HOA must provide this package to the seller within 20 days of request.

The Maryland Buyer's Right of Rescission

Maryland gives buyers 5 business days after receiving the complete disclosure package to rescind the purchase contract without penalty (§ 11B-106(d)). This is one of the longer rescission windows in the US (Virginia gives 3 days; Texas gives 7 days). Sellers who fail to provide a complete disclosure package can be liable for damages.

Enforcement and Fine Procedures

Maryland § 11B-111.1 requires that before imposing a fine, the association must: (1) give written notice of the violation identifying the specific rule violated, (2) provide a reasonable time to cure, and (3) give the owner an opportunity for a hearing before the board. Maryland does not set a statewide fine cap — the CC&Rs govern the amount.

Budget Requirements

Maryland HOAs must adopt an annual budget and distribute it to all owners before the start of the fiscal year. The budget must include a reserve contribution for future repairs. Maryland does not mandate a reserve study by statute, but reserve planning is considered part of the board's fiduciary duty under the business judgment rule.

Assessment Liens in Maryland

Maryland HOAs have a statutory lien for unpaid assessments under § 11B-117. The lien is created automatically when assessments become delinquent and must be perfected by recording in the land records of the county where the property is located. Maryland requires judicial foreclosure for HOA liens — there is no non-judicial process.