CB-18-609 Common ownership – Conflicts of interest

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CITIZEN-DRAFTED BILL CB-609 
 
Requested: September 7, 2025 
Suggested assignment to: Economic Matters 
 
AN ACT concerning 
 
Common ownership – Conflicts of interest 
FOR the purpose of consumer protection from insular procurement or monopolies, incentives to fall into disrepair while 
providing and profiting from insurance schemes, resources paid for by homeowners but diverted from their use or benefit 
for the profit of others connected to directors and managers, improper use of funds other than embezzlement, refusal to 
recognize authority of the council of unit owners, and other predatory abuses. 
 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
[Brackets] indicate matter deleted from existing law. 
Underlining indicates amendments to bill. 
Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. 
Bold indicates matters for general awareness, usually existing law that provides key context for the bill.   
 
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as 
follows: 
Article – Real Property 
 
11-108 
(e)  TO  THE  EXTENT  THAT  THE  GOVERNING  BODY  ALLOWS  THE  USE  OF  CONDOMINIUM  FACILITIES 
AND SERVICES OF THE COMMON ELEMENTS BY PERSONS WHO ARE NOT OWNERS OR RENTERS OF THE 
CONDOMINIUM,  THE  CORRESPONDING  FEES  FOR  USE  OF  FACILITIES  AND  SERVICES  OF  THE  COMMON 
ELEMENTS BY THOSE PERSONS SHALL BE AT LEAST DOUBLE THE REASONABLE AMOUNT CHARGED TO AN 
OWNER, RENTER, OR LEASEHOLD ESTATE OF THE CONDOMINIUM. 
 
11-111 
(a)(1) SUBJECT TO THE POWER OF THE COUNCIL OF UNIT OWNERS TO ADOPT OR RESCIND RULES UNDER 
SECTION 11-109(c)(15) OF THIS TITLE, [The council of unit owners or] the body delegated in the bylaws of 
a condominium to carry out the responsibilities of the council of unit owners may adopt OR RESCIND rules 
for the condominium if:  ... 
 
11-114 
 (j) A MANAGEMENT COMPANY SHALL NOT PROVIDE INSURANCE TO AN ASSOCIATION IT MANAGES. 

 
11-133 
(c) ANY ORAL OR WRITTEN SOLICITATION FOR A CONTRACTOR THAT WILL REQUIRE AN APPROVAL VOTE 
FROM THE GOVERNING BODY SHALL ALSO BE COMMUNICATED TO UNIT OWNERS WHO HAVE PROVIDED 
A  WRITTEN  REQUEST  FOR  SOLICITATION  NOTICES.    THE  MANAGEMENT  COMPANY  AND  BOARD  MUST 
ACCEPT  FOR  CONSIDERATION  ANY  PROPOSAL  FROM  A  QUALIFIED  OR  LICENSED  CONTRACTOR  THAT 
MEETS  LAWFUL  CRITERIA  SPECIFICIED  IN  THE  SOLICITATION.    CONTRACTORS  RECOMMENDED  BY  UNIT 
OWNERS  SHALL  NOT  BE  EXCLUDED FROM  CONSIDERATION.    ANY  CONFLICT  OF  INTEREST  SHALL BE 
DISCLOSED BY THE UNIT OWNER, BOARD MEMBER, CONTRACTOR, STAFF, OR MANAGEMENT COMPANY. 
(d) BEFORE THE AWARD OF A NEW CONTRACT, CHANGE ORDER, OR CONTRACT RENEWAL IN EXCESS OF 
$10,000,  OTHER  THAN  EXPENSES FOR  REASONABLE  HEALTH  OR  SAFETY  ISSUES  OR  PREVENTING 
SIGNIFICANT  RISK  OF  DAMAGE,  A  MANAGEMENT  COMPANY  SHALL  PROVIDE  TO  THE  BOARD  OF 
DIRECTORS A WRITTEN COPY OF ALL UNIQUE SOLICITATION MATERIAL THAT WAS USED TO SOLICIT BIDS 
OR  PRICE  QUOTES.    EACH  DIRECTOR SHALL  HAVE  THE  AUTHORITY  TO  INVESTIGATE  AND VERIFY  THE 
SOLICITATION MATERIAL DIRECTLY WITH THE SOLICITED VENDOR.   
(e) AN AGREEMENT FOR TRASH COLLECTION SHALL NOT REQUIRE EXCLUSIVE USE OF A SINGLE SERVICE 
PROVIDER. 
 
11B-112.2   
(g) The adoption of a budget does not impair the authority of the homeowners association to obligate the 
homeowners association for expenditures for any purpose consistent with any provision of this title. 
(h)  TO  THE  EXTENT  THAT  THE  GOVERNING  BODY  ALLOWS  THE USE  OF  COMMUNITY  FACILITIES  AND 
SERVICES  OF  THE  COMMON  ELEMENTS  BY  PERSONS  WHO  ARE  NOT  OWNERS  OR  RENTERS  OF  THE 
COMMON  ELEMENTS,  THE  CORRESPONDING  FEES  FOR  USE  OF  FACILITIES  AND  SERVICES  OF  THE 
COMMON  ELEMENTS  BY  THOSE  PERSONS  SHALL  BE AT  LEAST DOUBLE  THE REASONABLE  AMOUNT 
CHARGED TO AN OWNER, RENTER, OR LEASEHOLD ESTATE IN THE COMMUNITY. 
 
11B-111.6 
 (g) A MANAGEMENT COMPANY SHALL NOT PROVIDE INSURANCE TO AN ASSOCIATION IT MANAGES. 
 
§14–901. 
 
    (d)    (1)    “Service agreement” means an agreement where a service provider agrees to provide an individual 
services for: 
 
            (i)    The maintenance of residential property that the individual owns; or 
 
            (ii)    The purchase or sale of residential property. 
 
        (2)    “Service agreement” includes any memorandum, notice, agreement, or similar document that is used 
by a service provider to cause a service agreement to be recorded. 

 
    (e)    (1)    “Service provider” means a person OR ENTITY that provides services to an individual OR ENTITY 
through a service agreement for: 
 
            (i)    The MANAGEMENT OR maintenance of residential property that the individual owns IN FEE SIMPLE, 
IN COMMON, OR OTHERWISE; or 
 
            (ii)    The purchase or sale of residential property. 
 
        (2)    “Service provider” includes any person acting as an agent or designee of a service provider. 
 
 
§14–902. 
 
    (a)    This subtitle applies only to a service agreement entered into OR RENEWED on or after June 1, 2023. 
 
    (b)    This subtitle does not apply to: 
 
        (1)    A home warranty or similar product that covers the cost of maintenance of a major home system such 
as plumbing, electrical, or heating, ventilating, and air–conditioning; 
 
        (2)    An insurance contract THAT IS NOT ALSO A COMMUNITY MANAGEMENT CONTRACT; 
 
        (3)    An option or right of refusal to purchase residential property; 
 
        (4)    A declaration created in the formation of a common interest community, as defined in § 1–801 of the 
Environment Article; 
 
        (5)    A maintenance or repair agreement entered into by a homeowners association, as defined in § 11B–
101 of this article; 
 
        (6)    A mortgage loan or a commitment to make or receive a mortgage loan; 
 
        (7)    An agreement relating to the sale or rental of personal property; 
 
        (8)    Water, sewer, electrical, telephone, cable, or other regulated utility providers; or 
 
        (9)    A mechanics lien, as established under Title 9 of this article. 
 
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2026.