(a) Requirements relating to fees or assessments by developer to owner. If a developer or a developer's successor or assignee enters into an agreement pursuant to § 13-5-110 and charges a fee or assessment that purports to cover or defray all or part of the cost of installing or maintaining all or any part of the public water or wastewater facilities installed in a subdivision, the developer, the developer's successor, or any subsequent assignee shall:
(1) ensure that the terms and conditions of the fee or assessment are set forth in any contract of sale for the first residential dwelling unit to be built on each lot in the subdivision;
(2) annually bill each property owner subject to payment of the fee or assessment and notify the property owner, in writing, of the amount due, the remaining term, and the total balance;
(3) permit the prepayment without penalty of all or part of the fee or assessment by discounting the annualized payments at an interest rate of six percent to determine their equivalent present worth; and
(4) notify the property owner, in writing, if the right to collect the fee or assessment is assigned, and the notice shall include the full name and address of the assignee, the date of the assignment, and the outstanding balance owed on the fee or assessment.
(b) Failure to comply with subsection (a). The failure of a developer, a developer's successor, or any subsequent assignee to comply with the provisions of subsection (a) shall render void any obligation of the property owner to pay the fee or assessment. The requirements established by subsection (a) shall be binding on the original developer, the developer's successor, and any subsequent assignees throughout the life of the fee or assessment.
(c) Notice to purchasers. Each contract for the sale of real property in the County served by public water or wastewater facilities constructed as a result of an agreement permitted by § 13-5-110 shall contain a notice to the purchaser in substantially the following form:
Notice to purchasers of real estate in Anne Arundel County
This property is subject to a fee or assessment which purports to cover or defray the cost of installing or maintaining all or part of the public water or wastewater facilities constructed by the developer of the subdivision. This fee or assessment is (amount) payable annually in (month) to (name and address) (hereinafter called ‘lienholder') until (date). There may be a right of prepayment or discount for early payment which may be ascertained by contacting the lienholder. This fee or assessment is a contractual obligation between the lienholder and each owner of this property and is not in any way a fee or assessment by Anne Arundel County.
(d) Failure to comply with subsection (c). If a seller subject to this section fails to comply with the provisions of subsection (c):
(1) prior to settlement, the purchaser shall have the right to rescind the contract and to receive a full refund of all deposits paid on account of the contract, but the right of rescission shall terminate five days after the seller provides to the purchaser written notice in compliance with subsection (c); and
(2) following settlement, the seller shall be liable to the purchaser for the full amount of any open lien or assessment.
(1985 Code, Art. 17, § 1-103) (Bill No. 63-04; Bill No. 51-05)