Question:
Is there a Maryland law / regulation that stipulates how often a Maryland Home Owner’s Association should have its financial records audited by an independent entity ? If so, can you send me a citation or the actual law ? Thank you.
– Brian
Answer:
Hi Brian,
For condominiums, Maryland Condominium Act Section 11-116(b) states: “On the request of the unit owners of at least 5 percent of the units, the council of unit owners shall cause an audit of the books and records to be made by an independent certified public accountant, provided an audit shall be made not more than once in any consecutive 12-month period. The cost of the audit shall be a common expense.”
For time-share associations, Maryland Real Estate Time-Sharing Act Section 11A-128(b)(1) states: “On the request of the owners of at least 5 percent of the time-shares, the association, or developer during the developer control period, shall cause an audit of the books and records to be made by an independent certified public accountant at common expense.” It goes on to say that “an audit may not be required more than once in any consecutive 12-month period.”
The Maryland Homeowners Association Act does not stipulate an audit requirement. That being said, your HOA’s governing documents may be able to shed some light on this. Your CC&Rs or bylaws might contain audit requirements, including how frequently your HOA must have a third-party audit.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
