Frequently Asked Questions

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Legal Hotline FAQ

a blog of the most frequently asked questions to the MAR legal hotline.

In the Maryland Homeowners Association Act (HOA) (Title 11B, Section 106 (f)), it states that “the provisions of subsections (a), (b), (d), and (e) of this section do not apply to the sale of a lot in an action to foreclose a mortgage or deed of trust.”

I assume this means that if a bank institutes foreclosure proceedings, no HOA disclosure requirement is enforced. But does that also apply to a bank-owned property that the bank is selling as a result of acquiring the property in foreclosure? Is the bank exempt from providing HOA docs to the potential purchaser and that the 5-day right of rescission does not apply?

I list REO properties.

In many cases, I am contacted after the foreclosure sale, but before the sale is approved (ratified) by the court. Other times, I am informed that the seller has a deed, which is unrecorded. In this case, the tax records indicate the former owner is still the owner of record. This situation is very confusing to listing agents as well as buyers and buyer’s agents. What is my obligation concerning disclosure of the status of the title of an REO listing?