Who Pays for a Pipe Leak in a Condo Community?

 Imagine Two Hugging Octopuses, and You Begin to Get the Picture!

When a pipe leaks in a condominium, determining who is financially responsible almost never comes down to where the pipe is located. Upon careful reading of laws and governing documents, the controlling factor is usually who is served by the pipe.

Try to think of it this way: a restaurant waiter provides service. He can bring something to you (food or water) or take something away (dirty dishes). There can be two waiters. One serves only you; the other serves everyone at the table. If the waiter (or pipe) serves only you, that's your exclusive waiter (pipe) and you are solely responsible for tipping the waiter (or maintaining the pipe).

Any "four walls" description of ownership can be very misleading. Careful reading of laws and governing documents usually reveals that the shapes of any owned areas are not perfect squares or cubes but in fact are more like two hugging octopuses. The pipes that serve only you are your tentacles; the pipes that serve many people (such as the pipes that serve sprinklers) are the association's tentacles. The sprinkler valve heads may be your suction cups, not the association's.

A starting point for legal research in Maryland Law is Real Property Article 11-103(a)(3) and (a)(4). If the waiter (or pipe) brings something for you and others at your table, everyone would have to share the bill -- just as the association would be responsible for paying for a pipe that serves multiple people.

Some governing documents differ on who pays for limited common elements. Something that is reserved for your exclusive use is not the same as owning it exclusively or controlling the finances of it exclusively. Limited common elements can be a scary liability for homeowners. While there is a budget process for general common elements, there may not be for limited common elements. Repairs of limited common elements can sometimes be controlled by the association, and the association can bill you without limitation, making those disputes eligible for District Court in Maryland. There is potential for monopoly-like behavior here if an association attempts to force the use of a specific contractor.

If responsible for a limited common element, a homeowner should choose a qualified service provider and get permission from the association. If more immediate action is needed to eliminate a health or safety risk (and the board or manager is slow-walking the needed solution), then there may be some protection (such as legal precedent) in acting without permission to make the repair, but it is risky.

If the association requires a different contractor that a homeowner feels is not honest or qualified, then the homeowner could file a complaint against the association or service provider with the Office of the Attorney General Consumer Protection Division to mediate the issue. A starting point for legal research is Real Property Article 14, Section 14-901 to 14-909.

When it comes to water leaks in a condo community, knowledge of the law is essential. Making assumptions could result in a big bill.

CHARM Maryland, Inc. is a 501(c)(3) advocacy organization fighting to protect the rights of individual homeowners in our state. CHARM stands for Common Ownership Community Homeowners Advocating for Reform. Visit www.charm-md.org.