Important notice

To:		Members of the Coastal Association of REALTORS® of Maryland, Inc.
From:		Chuck Ebert, CAE, RCE, Chief Executive Officer
Date:		June 9, 2004
Re:		Ocean City High-Rise Building Sprinkler System Addendum

Members should immediately cease use of the Ocean City High-Rise Building Sprinkler System Addendum which was previously disseminated. The Addendum has now been removed from the available forms package for use by members.

The Town of Ocean City has appointed a task force regarding the issue of sprinkler
systems and high-rise buildings in Ocean City. A work session was held on February 24, 2004 regarding this issue.

The Ocean City Solicitor's Office has rendered an interpretation and opinion that the Town
of Ocean City has adopted two (2) conflicting statutes regarding the obligation of certain high-rise buildings in Ocean City to install a sprinkler system. One such law as adopted by the City Council grandfathers high-rise buildings which were permitted prior to July 1, 1973. A second statute adopted by the City Council of Ocean City contains no such grandfather provision.

The Association is working very closely with legal counsel regarding this matter and is monitoring developments as they occur as the Task Force continues to review and consider this matter.

Accordingly, at the present time, given the conflicting laws now in existence in Ocean City regarding high-rise sprinkler systems, the current Addendum has been pulled until this matter is resolved by the Town of Ocean City.

At such time as this matter is resolved and more definitive guidelines become available, the Association, in consultation with legal counsel, will consider whether a similar type Addendum is required and will promptly provide such to members if deemed necessary.

In the interim, it is the recommendation of legal counsel that the current
form of Addendum no longer be used until this matter is resolved.