(a) A seller of real property located in a development district or proposed development district (as defined in subsection (f)) must disclose to any buyer during the life of any development district created under this Chapter:
(1) the amount of any special assessment, special tax, fee, or charge which the buyer must pay; or
(2) if that amount cannot readily be determined, a method of calculating the amount in sufficient detail to enable the buyer to estimate the maximum amount the buyer will pay currently and during the life of the district.
This disclosure must be made in any sale or lot reservation contract.
(b) The seller of any property located in a development district or proposed development district (as defined in subsection (f)) must specify in any advertisement, sales brochure, sign, or other sales material that the seller creates or authorizes, that:
(1) the property is or would be located in a development district; and
(2) any potential buyer should ask the seller about the additional taxes and other charges for which a property owner in the district may be liable.
Each sales office and model home in a new housing development located in a development district or proposed development district (as defined in subsection (f)) must prominently display at least one sign that contains the information required under this subsection. The information required under this subsection need not be included in a printed advertisement that is smaller than 16 square inches, or on the initial screen of an internet listing as long as the information appears elsewhere on that listing.
(c) A notice in a contract of sale or similar document which prominently contains the heading “Notice of Special Tax or Assessment” and substantially conforms to the following text complies with subsection (a):
Each year the buyer of this property must pay a special assessment or special tax imposed under Chapter 14 of the Montgomery County Code, in addition to all other taxes and assessments that are due. As of (date of this contract), the special assessment or special tax on this property amounts to or will not exceed (dollar amount in arabic numbers) each year. As of (date of each scheduled or expected increase), the assessment or tax is scheduled to increase to (amount of each scheduled or expected increase). For further information on this assessment or tax, the buyer can contact the County Department of Finance at (current telephone number).
If an increase in any special assessment, special tax, fee, or charge is likely to occur in the forseeable future but the timing or amount of the increase is not certain when the contract is signed, the notice must also expressly disclose that fact.
(d) Promptly after the Council adopts a resolution under Section 14-9, the Director of Finance must record among the land records of the County at the cost of the development district a declaration encumbering all real property located in the district and designating that property as subject to a development district. The declaration must terminate when the Director records a release stating that all bonds are fully repaid, the County has been reimbursed for the cost of any infrastructure improvement funded or reimbursed by the County, the cost of any infrastructure improvement to be paid by the County directly from special assessments or special taxes has been paid, and all other obligations of the County relating to the district have been satisfied. While the declaration is in effect, each deed to any real property located in the district must contain a notice that:
(1) the property is located in a development district; and
(2) a declaration filed in the County land records encumbers the property.
(e) The Director of Finance must indicate on the real estate tax bill for each property in a development district the amount of any special assessment or special tax imposed on the property.
(f) Any notice or other information that this Section requires a seller to provide for a property located in a development district must also be provided if a development district has not been created but the property is located in an area proposed to be included in a development district by a petition filed under Section 14-6.
(g) Any contract which does not disclose all information required by this Section is voidable at the option of the buyer before the date of settlement.
(h) In addition to any other applicable remedy or penalty, any person who does not comply with this Section is liable for any damages sustained by a buyer or potential buyer because of that person’s failure to provide any required notice or information. However, a seller or the seller’s agent is not liable for an incorrect estimate of the amount of any tax, assessment, fee, or charge disclosed under this Section if the seller relied in good faith on a method approved or recommended by the County to estimate that amount.
(i) The Office of Consumer Protection must enforce this Section as if it were part of Chapter 11. (1994 L.M.C., ch. 12, § 1; 2008 L.M.C., ch. 34, § 1.)
Editor’s note—See County Attorney Opinion dated 7/26/07 discussing multiple issues deriving from the Clarksburg Master Plan and related issues regarding development districts.
2008 L.M.C., ch. 34, took effect on January 26, 2009.
2008 L.M.C., ch. 34, § 3, states: Applicability; interpretation.
(a) Any amendment to County Code Chapter 14 made in Section 1 of this Act applies to any action taken after this Act take effect.
(b) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not alter or affect any Council resolution adopted, or other action taken with respect to a development district, before this Act takes effect.
(c) Any amendment to County Code Chapter 14 made in Section 1 of this Act does not indicate that the previous version of a provision amended by Section 1 of this Act should be interpreted differently from the same provision as amended by Section 1 of this Act.
(d) Any notice or disclosure requirement in Section 14-17, as amended by Section 1 of this Act, applies to any sale contract signed, and any sales material or advertisement for sale disseminated, after this Act takes effect in any development district created, and in any proposed development district for which the Council adopted a resolution under Section 14-6, after January 1, 2001.