In September 2024, an engineering firm sent a reserve study to Ashland Homeowners Association, a 110-unit community of single-family homes and townhouses off Ashland Road in Cockeysville. The firm, Criterium-Harbor Engineers, worked from $370,079 in reserves as of September 1, 2024, and concluded that the community's reserve funding "IS ADEQUATE."
A few months later, the association found the error. The $370,079 included a separate paint reserve that the study never covered. Using only the general reserve balance of $215,365, Criterium-Harbor re-ran the analysis in April 2025. The new conclusion read "IS NOT ADEQUATE, although only typical increases will be required." The corrected study also included one possible funding plan that would raise the annual reserve contribution 2.5% every year for 30 years.
Ashland's board explained the correction openly, which is how an association should handle it. The episode also shows something a buyer in a Cockeysville townhome community needs to understand before signing. The document that settles whether fees are likely to rise is not on the list of things Maryland requires a seller to give you.
Two resale packages, one missing page
Maryland handles condominium resales and homeowners association resales under two different statutes, and their disclosure lists don't match.
For a condo, Real Property §11-135 requires the seller to deliver a resale certificate that includes the current operating budget, "the current reserve study report or a summary of the report," and the status and amount of any reserve fund, or a statement that there isn't one.
For a lot in an HOA, which covers most townhome communities, Real Property §11B-106 requires something else. You get current fees, the prior fiscal year's total charges, a statement of whether any charges are delinquent, management contact information, known lawsuits or violations, and the governing documents. No reserve study or reserve balance is on that list.
| What the buyer receives | Condo resale, §11-135 | HOA resale, §11B-106 |
|---|---|---|
| Current assessment or fees | Yes | Yes |
| Unpaid assessments due from the seller | Amount stated | Statement of whether charges are delinquent |
| Reserve study report or summary | Yes | Not listed |
| Reserve fund status and amount | Yes | Not listed |
| Approved capital spending not in the budget | Yes | Not listed |
| Delivery deadline | At least 15 days before closing | At or before contract, or within 20 calendar days after |
| Buyer's cancellation window | 7 days after receiving everything | 5 days after receiving the package if it arrives late; 3 days after receiving notice of a fee change over 10% or an adverse material amendment |
The HOA buyer has a second problem. Under §11B-112.3, an HOA's reserve study has to be "available for inspection and copying by any lot owner," and a summary goes out with each year's proposed budget. The statute gives that inspection right to lot owners, which makes the seller the natural person to request the study during a sale.
Why the study matters more now than five years ago
The reserve study used to be optional reading. Since 2022's HB 107, which took effect October 1, 2022, it has become the document that drives the budget. In Baltimore County, an existing association without a study done on or after October 1, 2018 had to get one by October 1, 2023. After that, studies have to be updated at least every five years.
HB 292, effective October 1, 2025, made the link to the budget tighter. Under §11-109.2, the reserves in a condominium's annual budget now have to equal the amount the latest study recommends and be deposited by the end of each fiscal year. If the latest study was an initial study, the board has five fiscal years to reach the recommended funding level. HOAs have to build a funding plan with a qualified reserve professional. That plan must put health and safety, structural integrity and essential systems first, and the board reviews progress at every annual meeting.
For a buyer, the five-year ramp means a community may be partway through a planned series of increases when you buy. The fee on the disclosure is accurate for today. The study shows where the fee is set to go. Ashland's 2025 schedule charged townhome owners $444 to $505 per quarter depending on unit type. Townhome owners also pay a separate paint fee that varies by type. A 2.5% annual increase in the reserve contribution is modest, and the study itself calls the increases needed "typical." Without the study, though, a buyer has no way of knowing whether the funding plan calls for 2.5% or something much larger.
The 2026 General Assembly considered changes. HB 1201 would have exempted some condos and small HOAs from the reserve rules, and HB 1132 would have changed resale timing and certificate fees. Neither bill was enacted. The rules described here are the rules in force for a closing this fall.
What a corrected study looks like up close
A total reserve balance only tells you so much. The useful part of a study is the component schedule, and Ashland's corrected version shows what that schedule contains.
The association is responsible for shared driveways, street-side parking areas, site features and two stormwater facilities. Owners take care of everything else on their own lots and buildings. The near-term items in the study are specific:
- Stormwater infiltration facilities: $40,000 for current repairs, noted as "Repairs requested by the County"
- Wood timber retaining wall: $21,000 to replace with masonry, scheduled within the first years of the study period
- Cluster mailbox units: 10 units at $3,000 each, $30,000 total
- Asphalt street parking: mill and overlay in 10 to 15 years
- Asphalt shared driveways: mill and overlay in 25 to 30 years
A buyer looking at this list learns three things the fee schedule doesn't show. The study carries a county-requested stormwater repair as a current item. The community's one remaining original timber retaining wall is due for replacement. Townhouse painting is funded through its own reserve and its own fee, outside the study. Ashland was built in phases between 1985 and 1991, so items like these are what a buyer should expect to find in a community of that age. In Ashland's case, the corrected study was what turned those facts into a funding conclusion.
How the timing squeezes an HOA buyer
The HOA package can arrive up to 20 calendar days after you sign the contract. According to the Bright MLS report for September 2026, attached and townhome sales in the Baltimore Metro region reached 915, with a median sold price of $315,000 and a median of 21 days on market. Baltimore Metro condos had 249 sales, a $310,000 median and 24 median days on market. Bright doesn't publish condo- or townhome-only figures for ZIP 21030, so those regional numbers are the closest available. When a typical townhome goes under contract in about three weeks, the reserve question usually comes up after the offer is signed, and the statute won't bring it up for you.
Fee changes add a seasonal wrinkle. Under §11B-112.2, an HOA board has to send owners a proposed budget at least 30 days before adopting it. If a fee change of more than 10% becomes known during your contract period, the seller has to disclose it, and you get three days to cancel after receiving that notice. A proposed budget that lands between contract and closing has consequences for both sides.
Condo boards have one more tool under §11-109.2. With a two-thirds vote, a condo governing body can declare a financial hardship and fund reserves below the required level for one fiscal year at a time. Each renewal takes another two-thirds vote. The board has to document its good-faith efforts to resume full funding, and those records are open to owners. When a hardship determination is in place, the reserve figure in the resale certificate carries that context.
Who should pull the study, and when
For a seller in a Cockeysville HOA community, the reserve study is a document you can request as a lot owner. Asking management for it before listing and making it available along with the §11B-106 package answers the question a careful buyer will ask anyway. Having it ready also keeps the contract from stalling while someone tracks the document down, and sharing it upfront shows confidence in the association's finances. If the study turns up a near-term item like Ashland's retaining wall, you can deal with it at the listing stage instead of during negotiation. Our Cockeysville neighborhood page and our guide to marketing your Cockeysville home cover other parts of preparing a listing.
For a buyer, the request should be part of the offer conversation:
- Ask for the most recent reserve study or update, along with the date it was prepared.
- Ask whether the study has been corrected or re-run, as Ashland's was.
- Compare the recommended annual contribution with what the current budget actually funds.
- Check whether major recurring costs, such as townhouse painting, sit in a separate reserve with a separate fee.
- In a condo, ask whether the board has adopted a hardship determination and read the documentation.
This post is general information, not legal or financial advice. Confirm how these statutes apply to your own contract with a Maryland real estate attorney.
Frequently asked questions
Is a reserve study required for every Cockeysville HOA? Under §11B-112.3, the requirement applies when the association has to maintain common areas under its declaration, the identified components cost at least $10,000 in total to repair or replace, and the association doesn't issue capital-expenditure bonds.
What can an HOA charge a seller for the resale package? Under §11B-106(c), the association has to provide the information within 20 days of a written request from a lot owner. The fee can't exceed the association's cost and is capped at $250.
Who can prepare the study? The study has to be prepared by someone who has done at least 30 reserve studies in the prior three years, holds a Maryland architect or professional engineer license, or holds a recognized reserve specialist or reserve analyst designation.
If you're planning to list a Cockeysville townhome or condo, Coastal Realm Northeast can start the conversation the same day you call, including reviewing your reserve study and resale package before a buyer asks for them. Request a same-day valuation and we'll go through your association documents together. Get My Valuation
