Realtors and association managers split on caps and costs for resale disclosure packages

Delegate Jen Terrasa presented HB1132 to address resale disclosure fees and timelines for condominium and homeowners associations, saying technology and online delivery make historical fee levels outdated and that excessive resale‑package charges can add hundreds of dollars in closing costs for buyers.

Terrasa recounted her own resale experience and said resale packages have become a ‘‘money‑making enterprise’’ for some third‑party processors and management firms; she asked the committee to modernize and harmonize the Condominium Act and HOA Act with fee caps tied to delivery costs and clearer disclosure timelines. Maryland Realtors’ Lisa May supported the bill as a means to standardize timelines and reduce duplicate packets from multiple associations on a single property.

Opposition testimony from Cynthia Kent and Community Associations Institute representatives warned cap proposals could undercompensate managers when large or complex associations must produce many time‑sensitive financial documents. Kent said managers follow labor‑intensive steps across multiple parties and that a one‑size‑fits‑all cap risks litigation exposure for managers and associations. Committee members suggested a broader task force, clearer time‑of‑production rules or carveouts for unusually large or complex associations.

The hearing ended with members urging further stakeholder negotiation; Terrasa said she would continue discussions but asked the committee for a favorable report.