Proposed Legislation Would Require Initial Condominium Sales Contracts To Include Information On Asbestos

House Bill 143, cross-filed with Senate Bill 46 in the current session of the Maryland General Assembly, would require contracts for the initial sale of a condominium unit to include a statement as to whether the seller has actual knowledge of the presence of asbestos on the site, along with a description of the location of the asbestos, whether an abatement has been performed, and the date of any abatement. The bills propose to add new subsection (iii) to Section 11-126(a) of the Condominium Act, which identifies items that an initial sales contract must contain in conspicuous type. The items presently required are (i) the purchaser's right to receive a public offering statement and the purchaser's rescission rights; and (i) the warranties under Section 11-131 and whether the council has entered into an agreement to settle or release the council's claims under the common element warranties. A similar asbestos disclosure bill passed the House during the 2023 session, but did not receive a vote in the Senate.