Senate Committee Issues Favorable Report On Bill To Preclude Developers From Limiting Condo Owners Claims

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The Maryland Senate Judicial Proceedings Committee has issued a favorable report on legislation, which has already been passed by the House of Delegates, intended to protect condominium owners’ rights with regard to bringing construction defect claims against the project’s developer.  The proposed law would prevent developers from including certain provisions in condominium governing documents or contracts of sale that act as an impediment to construction defect claims, including provisions that:  (a) shorten the statute of limitations for filing claims; (b) waive application of the “discovery rule” for purposes of determining when a claim accrued; (c) require the council or a unit owner in an arbitration proceeding to assert a claim within a period shorter than the applicable statute of limitations; or (d) operate to prevent a council or unit owner from filing a law suit, initiating arbitration proceedings, or otherwise asserting a claim within the applicable statute of limitations.

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