Article IV. New Home Sales Contracts.
Montgomery County, Md., Code § 40-15 (2026)
Sec. 40-15. Definitions; scope.LinkCopy Citation
(a)
In this article, the following words have the meaning indicated:
New home means any newly constructed dwelling unit. "New home" includes any single- family home, townhouse, row house, or condominium which has not been previously sold and occupied.
Buyer means the original buyer of a new home.
Buyer's agent means any person expressly designated by the buyer to serve as the buyer's representative at a pre-settlement inspection. "Buyer's agent" does not include an employee or agent of the seller.
Seller means any person or firm engaged in the business of selling new homes, or to whom a new home has been conveyed for resale in the course of business.
Seller's agent includes an employee of a seller or an independent, licensed real estate agent representing a seller.
(b)
This article applies to any contract for the sale of a new home entered into on or after March 15, 1989. It applies to all new homes sold in Montgomery County, whether the new home is built before or after the date of the contract.
(c)
The conveyance of a new home to an intermediate person to evade any liability or obligations to a buyer under this article or any other law does not remove the new home from the requirements of this article.
Montgomery County, Md., Code § 40-16 (2026)
Sec. 40-16. Right to pre-settlement inspection.LinkCopy Citation
(a)
Any buyer of a new home may inspect the new home before settlement. The home may be inspected by the buyer, who may be accompanied by a buyer's agent. The seller and buyer should negotiate the date and time of the inspection. However, the seller must allow an inspection not less than 24 hours nor more than 72 hours before settlement, unless the buyer agrees otherwise. This article does not prevent a buyer and seller from agreeing to more than this one inspection.
(b)
The seller must allow a reasonable time to conduct the inspection. The seller or the seller's agent may attend the inspection.
(c)
Any contract for the sale of a new home must include a statement that the right to a pre- settlement inspection is guaranteed by County law.
Montgomery County, Md., Code § 40-17 (2026)
Sec. 40-17. Disclosure of settlement and contract performance dates.LinkCopy Citation
(a)
Any contract for the sale of a new home must clearly disclose the estimated settlement date, if any, and all other contract performance dates relating to the delivery of the home.
(b)
These dates must all be disclosed in the same paragraph of the contract.
Montgomery County, Md., Code § 40-18 (2026)
Sec. 40-18. Recording oral statements or promises.LinkCopy Citation
(a)
Any contract for the sale of a new home must contain a section in which oral statements or promises made by the seller, the seller's agent, or the buyer may be recorded.
(b)
This section must be conspicuously displayed and must take the following form:
ORAL STATEMENTS OR PROMISES
Oral statements or promises often cause serious disputes between sellers and buyers of new homes. This section of the contract attempts to alleviate potential problems. Unless oral statements or promises are included in this contract, they may not be enforceable under law. By including the terms below, the buyer and seller are making them part of this contract. THIS SECTION SHOULD NOT BE LEFT BLANK IF YOU ARE RELYING ON ANY ORAL STATEMENT OR PROMISES.
The following oral statements or promises have been made by the seller, the seller's agent, or the buyer. Performance of each of these statements or promises is incorporated into each party's obligation to fully perform the terms of this contract:
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
(c)
The contract must include sufficient space on which to record oral statements or promises. Additional pages may be used and, if used, must be incorporated by reference into the contract.
Montgomery County, Md., Code § 40-19 (2026)
Sec. 40-19. Arbitration clauses.LinkCopy Citation
(a)
Any provision in a new home sales contract that requires arbitration of any dispute between buyer and seller must give both the buyer and seller an opportunity, when the arbitration procedure is to be initiated, to disaffirm the agreement to participate in the arbitration. At that time, either the buyer or seller may decide not to proceed with arbitration and may instead exercise any other remedy available by law.
(b)
Any arbitration provision must clearly describe the method of arbitration to be used.
Montgomery County, Md., Code § 40-20 (2026)
Sec. 40-20. Administration and penalties; regulations.LinkCopy Citation
(a)
This Article is enforced by the Office of Consumer Protection. Any violation of the Article is a class A violation.
(b)
The County Executive may adopt regulations under method (3) to implement this Article.
Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection.
Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.