Can I back out after reading the condo documents in Maryland?

Yes. Under Maryland Real Property §11-135, a buyer of a resale condo can cancel in writing within 7 days after receiving all of the required documents, without giving a reason, and get the deposit back. The right can't be waived in the contract, but it ends if you go to settlement.

What are typical condo fees in Maryland?

They vary too much by building to give one number. A garden condo with few amenities and an elevator building with a pool, staff and a large reserve fund are very different. The resale certificate states the current assessment, any special assessment and other fees for the specific unit, so read it before you count on a number.

How do I check if a condo is FHA approved?

Search the project on HUD's FHA condominium lookup at entp.hud.gov, which lets anyone search approved projects by state and county. If the project is not approved, FHA may still insure a loan on one unit through single-unit approval if the project meets HUD's requirements. VA keeps its own approval list, and your lender checks it.

When does the seller have to give me the condo documents?

Maryland law requires the seller of a resale unit to furnish the declaration, bylaws, rules and a resale certificate no later than 15 days before closing. Ask for them as early as possible, because your 7-day cancellation window starts when you receive everything.

Buying a condo in Maryland: fees, the resale package and your 7-day right to cancel

Before you buy a Maryland condo: the resale certificate, your 7-day right to cancel, reserves and special assessments, FHA approval and insurance.

By Stacey Wilson, REALTOR®, Real Estate Salesperson

Published October 26, 2026 · 6 min read

When you buy a resale condo in Maryland, the seller has to give you a package of association documents, including a resale certificate with the fees, budget and reserves, at least 15 days before closing. Once you have all of it, you get 7 days to cancel the contract in writing for any reason and get your deposit back. That window is your time to read the budget, the reserve study and the insurance before you’re locked in.

Here’s what to look for, with the Maryland Condominium Act sections behind it (checked October 2026). For the rest of the buying process, start on our buyer page.

This is general information, not legal advice. For questions about a specific contract or association, talk to a Maryland real estate attorney.

Condo vs townhome vs HOA

These get mixed up because some townhomes are condos.

Condo: You own your unit, plus a shared interest in the common elements: the land, roofs, exterior walls, hallways and amenities. The association (legally, the council of unit owners) maintains and insures those. Condos fall under the Maryland Condominium Act, Real Property Title 11.
Fee simple home in an HOA: You own the house and the lot. The HOA owns common areas like paths and pools and enforces the rules. HOAs fall under a different law.
Condo townhome: Looks like a townhouse, but legally it’s a condo. The association may own and maintain the roof and exterior.

The listing should say which it is. Check the deed and documents, because it changes what your fee covers, what you insure, and what your lender needs.

The resale package and your 7-day right to cancel

Under Real Property §11-135, the seller of a resale unit (anyone other than the developer) has to give you, no later than 15 days before closing:

The declaration (minus plats), bylaws, and rules and regulations
A resale certificate from the association, covering among other things:
- The monthly assessment and any unpaid regular or special assessment
- Other fees owed to the association
- Approved capital expenditures not in the current budget
- The latest balance sheet and income and expense statement
- The current operating budget, with the current reserve study or a summary, and the reserve fund balance
- Unsatisfied judgments and pending lawsuits against the association
- A description of the association’s insurance
- Known health or building code violations in the common elements
The seller’s own statement on alterations that break the rules, code violations in the unit, and known asbestos
A notice of your responsibility for the association’s insurance deductible, and the amount

Buildings with fewer than 7 units have a shorter list.

Then the key part. Under §11-135(f), you may cancel the contract in writing within 7 days after you receive all of the required information, for any reason, with no liability, and get your deposits back. You can’t waive that right in the contract. It ends if you go to settlement.

Two practical points. The 7 days start when you have everything, so track what’s missing. And ask for the package as early as possible. The association has 20 days to produce the certificate after the seller requests it, and the seller can pay extra for faster delivery.

You’re also protected on the numbers: you aren’t liable for any unpaid assessment or fee greater than the amount stated in the association’s certificate.

Reading the budget and reserve study

The budget tells you where your fee goes. The reserve study tells you whether the association is saving enough to replace the big things.

Maryland now requires condos to have reserve studies. Under §11-109.4, a reserve study lists each major component the association must repair or replace (roofs, paving, elevators, mechanical systems), its remaining useful life and cost, and the yearly amount needed in reserves. Associations need an updated study at least every five years. Existing condos outside Prince George’s and Montgomery counties had to have one by October 1, 2023, if they hadn’t had one since 2018.

What to look for:

Reserve balance vs. what the study recommends: A big gap means a fee increase or a special assessment is likely.
Components near the end of their life: A 25-year-old roof with no money set aside is a warning.
The reserve contribution in the budget: Is the association putting in what the study says?
Delinquencies: Many owners behind on fees strains the budget.
Lawsuits listed on the certificate.

Special assessments

A special assessment is a one-time charge to owners on top of the monthly fee, usually for a big repair the reserves can’t cover. The certificate has to disclose any special assessment already adopted, and any approved capital expenditure that isn’t in the budget.

Ask about planned projects that haven’t been voted yet. Read the last few months of board minutes if you can get them. If an assessment is already adopted, your contract decides who pays it, so negotiate it in the offer.

FHA and VA condo approval

If you’re using an FHA or VA loan, the condo project has to be approved, or the unit has to qualify on its own.

FHA: Search HUD’s FHA-approved condominium list by state, county or name. If the project isn’t approved, FHA may still insure the loan through single-unit approval. HUD says the project must be complete, have at least five units, not be manufactured housing, and meet certain requirements on FHA concentration, owner occupancy and finances.
VA: VA says condos require pre-approval or a waiver. Your lender checks VA’s list.
Conventional: Lenders review the project too, especially owner occupancy, delinquencies and litigation. Problems here can kill a loan late, so send your lender the documents as soon as you have them.

Insurance

The association’s master policy covers the building and common elements. You insure your belongings, liability, and depending on the master policy, part or all of your unit’s interior, with an HO-6 policy. The NAIC’s latest report (July 2026, 2023 data) puts the average Maryland HO-6 premium at $468 a year.

Read the deductible notice in your resale package. If the master policy has a large deductible, your HO-6 needs enough loss assessment coverage to pay your share. More in homeowners insurance in Maryland.

Timing your contract around the package

The 15-day and 7-day rules interact with your other deadlines, and a short settlement can squeeze them. Ask in the contract for the seller to order the resale package right away, and note in writing the date you receive the last piece. If something is missing, your 7 days haven’t started.

Send the budget, reserve study and insurance summary to your lender in the same week. Condo approval problems are easier to deal with in week one than the week before closing.

Questions to ask the manager

What is the current fee, and when did it last go up? Is an increase planned?
Are any special assessments being discussed?
When was the last reserve study, and is the association funding it as recommended?
What major projects are planned in the next five years?
How many owners are delinquent?
Are there rental caps or leasing restrictions?
What does the fee include: water, heat, parking, amenities?
Is there any litigation, and what is it about?
What is the master policy deductible?

You can search condos in Montgomery County and across the region on our home search.

Bottom line

A Maryland condo comes with a package of documents and a 7-day window to cancel after you get them. Use the window. Read the budget, the reserve study, the insurance deductible and the certificate for assessments and lawsuits, and make sure your loan works with the project. If you want help reading a resale package, talk to The Wilson Home Team of Samson Properties or call Stacey at (240) 913-5221.

Sources

Maryland Code, Real Property §11-135 (resale disclosures and rescission), checked October 2026
Maryland Code, Real Property §11-109.4 (reserve studies), checked October 2026
HUD, FHA Condominiums and approved condominium search, checked October 2026
U.S. Department of Veterans Affairs, Quick Reference for Real Estate Professionals, checked October 2026
National Association of Insurance Commissioners, Homeowners Insurance Report: Data for 2023, July 2026

Quick answers

Can I back out after reading the condo documents in Maryland?: Yes. Under Maryland Real Property §11-135, a buyer of a resale condo can cancel in writing within 7 days after receiving all of the required documents, without giving a reason, and get the deposit back. The right can't be waived in the contract, but it ends if you go to settlement.
What are typical condo fees in Maryland?: They vary too much by building to give one number. A garden condo with few amenities and an elevator building with a pool, staff and a large reserve fund are very different. The resale certificate states the current assessment, any special assessment and other fees for the specific unit, so read it before you count on a number.
How do I check if a condo is FHA approved?: Search the project on HUD's FHA condominium lookup at entp.hud.gov, which lets anyone search approved projects by state and county. If the project is not approved, FHA may still insure a loan on one unit through single-unit approval if the project meets HUD's requirements. VA keeps its own approval list, and your lender checks it.
When does the seller have to give me the condo documents?: Maryland law requires the seller of a resale unit to furnish the declaration, bylaws, rules and a resale certificate no later than 15 days before closing. Ask for them as early as possible, because your 7-day cancellation window starts when you receive everything.

Topics: condos, condo fees, FHA loans, homeowners insurance, montgomery county

This post is general information, not legal, tax or financial advice. Rules, rates and programs change and vary by county; confirm the details for your situation with the agency or source linked above, a tax professional or an attorney.