<section article="gbr" article_name="Business Regulation" number="4.5-101" title_number="4.5" title_name="Home Builder Registration" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Consumer” means an owner or a contract purchaser.</text> </level> <level label="c"> <text>“Contract purchaser” means a person who has entered into a contract with a home builder to purchase a new home, but who has not yet settled on the purchase of the new home.</text> </level> <level label="d"> <text>“Division” means the Consumer Protection Division of the Office of the Attorney General.</text> </level> <level label="e"> <text>“Exempt lender” means a lender exempt from the requirements of registration as provided in § 4.5–501(c) of this title.</text> </level> <level label="f"> <text>“Guaranty Fund” means the Home Builder Guaranty Fund.</text> </level> <level label="g"> <level label="1"> <text>“Home builder” means a person that undertakes to erect or otherwise construct a new home.</text> </level> <level label="2"> <text>“Home builder” includes:</text> <level label="i"> <text>a custom home builder as defined in § 10–501 of the Real Property Article;</text> </level> <level label="ii"> <text>a new home builder subject to § 10–301 of the Real Property Article;</text> </level> <level label="iii"> <text>the installer or retailer of a mobile home or an industrialized building intended for residential use; and</text> </level> <level label="iv"> <text>a person that enters into a contract with a consumer under which the person agrees to provide the consumer with a new home.</text> </level> </level> <level label="3"> <text>“Home builder” does not include:</text> <level label="i"> <text>an employee of a registrant who does not hold himself or herself out for hire in home building except as an employee of a registrant;</text> </level> <level label="ii"> <text>subcontractors or other vendors hired by the registrant to perform services or supply materials for the construction of a new home who do not otherwise meet the requirements of this title;</text> </level> <level label="iii"> <text>the manufacturer of industrialized buildings intended for residential use or of mobile homes, unless the manufacturer also installs the industrialized buildings or mobile homes;</text> </level> <level label="iv"> <text>a real estate developer who does not construct, or enter into contracts with consumers to provide or construct, homes;</text> </level> <level label="v"> <text>a financial institution that lends funds for the construction or purchase of residential dwellings in the State;</text> </level> <level label="vi"> <text>except as otherwise provided in this title, a person who erects or constructs new homes solely in Montgomery County; or</text> </level> <level label="vii"> <text>a buyer’s agent, as defined in § 17–530 of the Business Occupations and Professions Article, when representing a prospective buyer in the purchase of a new home.</text> </level> </level> </level> <level label="h"> <text>“Home builder registration number” means a registration number issued by the Unit to a registrant under this title.</text> </level> <level label="i"> <level label="1"> <text>“Home builder sales representative” means an individual employed by a home builder as the home builder’s representative to consumers regarding the purchase of a new home from the home builder.</text> </level> <level label="2"> <text>“Home builder sales representative” includes individuals employed by a person who erects or constructs new homes solely in Montgomery County and is not required to register under this title.</text> </level> <level label="3"> <text>“Home builder sales representative” does not include:</text> <level label="i"> <text>an individual employed by an installer or retailer of mobile homes or industrialized buildings intended for residential use; or</text> </level> <level label="ii"> <text>an employee or officer agent for a nonprofit organization, with at least a 2–year record in the State as a developer of affordable housing for persons with low to moderate incomes, in the initial sale of a home if:</text> <level label="1"> <text>the home is constructed or rehabilitated by the nonprofit organization; and</text> </level> <level label="2"> <text>the purchaser of the home is using federal, State, or local government or other subsidized financing administered by the nonprofit organization for the purpose of assisting individuals with low to moderate incomes to purchase homes.</text> </level> </level> </level> </level> <level label="j"> <text>“Industrialized building” has the meaning stated in § 12–301 of the Public Safety Article.</text> </level> <level label="k"> <text>“Install” has the meaning stated in § 12–301 of the Public Safety Article.</text> </level> <level label="l"> <text>“Mobile home” means a manufactured home as defined in § 12–301 of the Public Safety Article.</text> </level> <level label="m"> <level label="1"> <text>“New home” means each newly constructed residential dwelling unit in the State and the fixtures and structure that are made a part of a newly constructed private dwelling unit at the time of construction.</text> </level> <level label="2"> <text>“New home” includes:</text> <level label="i"> <text>a custom home as defined in § 10–501(c) of the Real Property Article;</text> </level> <level label="ii"> <text>a new home to which § 10–301 of the Real Property Article applies;</text> </level> <level label="iii"> <text>an industrialized building intended for residential use; and</text> </level> <level label="iv"> <text>a mobile home.</text> </level> </level> </level> <level label="n"> <text>“New home contract” means an agreement between a home builder and a consumer for the sale or construction of a new home.</text> </level> <level label="o"> <level label="1"> <text>“Owner” means a person for whom a new home is built or to whom a new home is sold for occupation by:</text> <level label="i"> <text>that person or the family of that person as a home; or</text> </level> <level label="ii"> <text>the successors of that person in title to the home or a mortgagor in possession.</text> </level> </level> <level label="2"> <text>“Owner” includes a contract purchaser who contracts with a registrant for the construction and purchase of a new home.</text> </level> <level label="3"> <text>“Owner” does not include:</text> <level label="i"> <text>a development company, association, or subsidiary company of a registrant; or</text> </level> <level label="ii"> <text>a person or organization to whom the home may be conveyed by the registrant for a purpose other than residential occupation by that person or organization.</text> </level> </level> </level> <level label="p"> <text>“Principal” means:</text> <level label="1"> <text>a sole proprietor, officer, director, general partner, or limited liability company manager of an applicant or registrant;</text> </level> <level label="2"> <text>a person with at least 10 percent ownership in an applicant or registrant or a subsidiary of an applicant or registrant; and</text> </level> <level label="3"> <text>parents, spouses, and children with a combined 10 percent ownership in an applicant or registrant or a subsidiary of an applicant or registrant.</text> </level> </level> <level label="q"> <text>“Registered sales representative” means a person registered to be a home builder sales representative under this title.</text> </level> <level label="r"> <text>“Registrant” means a person registered to build new homes.</text> </level> <level label="s"> <text>“Registration certificate” means a certificate issued to a registered sales representative by the Unit.</text> </level> <level label="t"> <text>“Registration Fund” means the Home Builder Registration Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-201" title_number="4.5" title_name="Home Builder Registration" subtitle_number="2" subtitle_name="Home Builder Registration Unit; Home Builder Registration Fund"> <text>There is a Home Builder and Home Builder Sales Representative Registration Unit in the Division.</text> </section> <section article="gbr" article_name="Business Regulation" number="4.5-202" title_number="4.5" title_name="Home Builder Registration" subtitle_number="2" subtitle_name="Home Builder Registration Unit; Home Builder Registration Fund"> <level label="a"> <text>The Unit shall maintain a list of all registrants and registered sales representatives.</text> </level> <level label="b"> <level label="1"> <text>The Unit shall make available to each applicant for registration as a home builder or home builder sales representative a copy of this title and other applicable laws and regulations.</text> </level> <level label="2"> <text>The Unit shall make available to each registrant and each registered sales representative any amendments to this title or other applicable laws or regulations at least 30 days before the effective date of the amendments.</text> </level> </level> <level label="c"> <level label="1"> <text>In consultation with the home building industry, the Unit shall develop a consumer information pamphlet written in plain English that describes:</text> <level label="i"> <text>the rights and remedies of consumers in the purchase of a new home; and</text> </level> <level label="ii"> <text>any other information that the Division considers reasonably necessary to assist consumers.</text> </level> </level> <level label="2"> <text>The Division shall provide each registered home builder with a sufficient number of copies of the consumer information pamphlets as needed by the home builder.</text> </level> <level label="3"> <text>A home builder shall provide each contract purchaser with the consumer information pamphlet before entering into a contract for the initial sale of a new home.</text> </level> <level label="4"> <text>The contract purchaser shall acknowledge in writing the receipt of the consumer information pamphlet.</text> </level> <level label="5"> <text>The failure of a home builder to provide a copy of the consumer information pamphlet to a contract purchaser may not be used as a basis for invalidation of the contract for the initial sale of a new home.</text> </level> </level> <level label="d"> <text>The Unit shall collect and maintain information on the resolution of consumer complaints involving new home builders or home builder sales representatives.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-203" title_number="4.5" title_name="Home Builder Registration" subtitle_number="2" subtitle_name="Home Builder Registration Unit; Home Builder Registration Fund"> <level label="a"> <level label="1"> <text>There is a Home Builder Registration Fund.</text> </level> <level label="2"> <text>The Division shall administer the Registration Fund.</text> </level> <level label="3"> <text>The Registration Fund shall be used to cover the actual documented direct and indirect costs incurred for the administration and enforcement of the Maryland Home Builder Registration Act.</text> </level> <level label="4"> <text>The Registration Fund is a continuing, nonlapsing fund, and is subject to § 7-302 of the State Finance and Procurement Article.</text> </level> <level label="5"> <text>Unspent assets of the Registration Fund shall remain in the Registration Fund and may not revert or be transferred to the General Fund of the State.</text> </level> <level label="6"> <text>The Registration Fund may not be supported by appropriations of State funds.</text> </level> </level> <level label="b"> <text>The Division shall pay all funds collected under §§ 4.5-303, 4.5-304, and 4.5-305 of this title to the Comptroller, who shall distribute the fees to the Registration Fund.</text> </level> <level label="c"> <text>The accounts and transactions of the Registration Fund shall be subject to audit by the Legislative Auditor in accordance with §§ 2–1220 through 2–1227 of the State Government Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-301" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Except as otherwise provided in this title, a person may not act as a home builder in the State unless the person is registered as a home builder under this title.</text> </level> <level label="b"> <text>A person may not act as a home builder sales representative in the State unless the person is a registered sales representative under this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-302" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Each person that constructs new homes for sale to the public shall maintain general liability insurance for at least $100,000.</text> </level> <level label="b"> <text>If a home builder’s registration has been revoked and the home builder applies for a new registration, the Unit shall, in its discretion, approve the application on the applicant’s fulfillment of specified terms and conditions, including the posting of a bond for the benefit of subcontractors, suppliers, and consumers, and the payment of any judgments or awards due to any subcontractors, suppliers, and consumers, for a period of 4 years from the date of the approval of registration, after which the licensing bond shall expire and shall no longer be required to be maintained by the registered home builder.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-303" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>To apply for registration as a home builder or a home builder sales representative, an applicant shall:</text> <level label="1"> <text>submit to the Unit under oath an application on the form provided by the Unit; and</text> </level> <level label="2"> <text>pay the nonrefundable application fee required by this subtitle.</text> </level> </level> <level label="b"> <text>The application for registration as a home builder shall require an applicant to provide:</text> <level label="1"> <text>the applicant’s name;</text> </level> <level label="2"> <text>the applicant’s business address, telephone number, and, if applicable, electronic mail address;</text> </level> <level label="3"> <text>in the case of an applicant who is an individual, the applicant’s Social Security number;</text> </level> <level label="4"> <text>in the case of an applicant other than an individual:</text> <level label="i"> <text>the applicant’s federal employer identification number; and</text> </level> <level label="ii"> <text>the names and addresses of all principals of the applicant;</text> </level> </level> <level label="5"> <text>the names of all applicants and principals who have previously applied for registration, and the disposition of all previous applications;</text> </level> <level label="6"> <text>the name of any applicant or principal that was a principal in an entity that previously applied for registration;</text> </level> <level label="7"> <text>a list of all states and other jurisdictions in which the applicant holds a similar registration or license;</text> </level> <level label="8"> <text>a list of all states and other jurisdictions in which the applicant has had a similar registration or license suspended or revoked;</text> </level> <level label="9"> <text>a statement whether any pending judgments or tax liens exist against the applicant;</text> </level> <level label="10"> <level label="i"> <text>the election made by the applicant regarding deposit moneys under § 10–301 of the Real Property Article; and</text> </level> <level label="ii"> <text>if the applicant elects to hold deposits in an escrow account, the account number and the name of the financial institution that holds the escrow account;</text> </level> </level> <level label="11"> <text>if the applicant participates in a new home warranty security plan, the name and address of the warranty company; and</text> </level> <level label="12"> <text>the name of the insurance carrier and the policy number of the general liability coverage required under § 4.5–302 of this subtitle.</text> </level> </level> <level label="c"> <text>The application for registration as a home builder sales representative shall require an applicant to provide:</text> <level label="1"> <text>the applicant’s name;</text> </level> <level label="2"> <text>the applicant’s business address, telephone number, and, if applicable, electronic mail address;</text> </level> <level label="3"> <text>the applicant’s Social Security number;</text> </level> <level label="4"> <text>a list of all states and other jurisdictions in which the applicant holds a similar registration or license;</text> </level> <level label="5"> <text>a list of all states and other jurisdictions in which the applicant has had a similar registration or license suspended or revoked;</text> </level> <level label="6"> <text>the applicant’s employer’s business name, address, telephone number, and registration number or if the employer is exempt from registration under this title, documentation that the employer erects or constructs homes solely in Montgomery County; and</text> </level> <level label="7"> <text>a statement whether any pending judgments or tax liens exist against the applicant.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-304" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>The Unit shall register and issue a home builder registration number to an applicant for a home builder registration that:</text> <level label="1"> <text>meets the requirements of this title; and</text> </level> <level label="2"> <text>pays to the Division an initial nonrefundable 2–year registration fee of $800.</text> </level> </level> <level label="b"> <text>A home builder registration issued under this title may not be transferred, assigned, or pledged.</text> </level> <level label="c"> <text>A valid home builder registration authorizes the registrant to act as a home builder in the State.</text> </level> <level label="d"> <level label="1"> <text>A home builder that holds a license or registration in Montgomery County may act as a home builder in that county only, unless the home builder is also registered under this title.</text> </level> <level label="2"> <text>A home builder that holds a license or registration in Montgomery County and is not registered under this title is subject to Subtitle 7 of this title.</text> </level> <level label="3"> <level label="i"> <text>In addition to the county license or registration fee, a home builder that is required to hold a license or registration only in Montgomery County shall pay to the county a Guaranty Fund administrative fee of $250.</text> </level> <level label="ii"> <text>The county shall remit the Guaranty Fund administrative fee to the Unit to be deposited in the Registration Fund.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-304.1" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>The Unit shall register and issue a registration certificate to an applicant for a home builder sales representative registration certificate that:</text> <level label="1"> <text>meets the requirements of this title; and</text> </level> <level label="2"> <text>pays to the Division an initial nonrefundable 2–year registration fee of $300.</text> </level> </level> <level label="b"> <text>A Unit shall include on each registration certificate that the Unit issues:</text> <level label="1"> <text>that this is a registration certificate for a registered sales representative;</text> </level> <level label="2"> <text>the full name of the certificate holder;</text> </level> <level label="3"> <text>the certificate holder’s employer’s registration number or the name of the licensed or registered Montgomery County home builder; and</text> </level> <level label="4"> <text>the certificate holder’s registration number.</text> </level> </level> <level label="c"> <text>A registration certificate issued under this title may not be transferred, assigned, or pledged.</text> </level> <level label="d"> <text>A valid registration certificate authorizes the certificate holder to act as a home builder sales representative in the State.</text> </level> <level label="e"> <text>The Unit may issue a registration certificate to replace a lost, destroyed, or mutilated registration certificate if the certificate holder pays the registration certificate replacement fee set by the Unit.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-305" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <level label="1"> <text>Unless renewed under this section, a registration or registration certificate expires on the second anniversary of its effective date.</text> </level> <level label="2"> <text>A registrant or registered sales representative that meets the requirements of subsection (c) of this section may obtain a renewal of a registration or registration certificate before the registration or registration certificate expires for an additional 2–year term.</text> </level> <level label="3"> <text>Once expired, a registration or a registration certificate may not be renewed.</text> </level> </level> <level label="b"> <text>At least 60 days before a registration or registration certificate expires, the Unit shall mail the registrant or registered sales representative, at the last known address of the registrant or registered sales representative:</text> <level label="1"> <text>a renewal application form; and</text> </level> <level label="2"> <text>a notice that states:</text> <level label="i"> <text>the date on which the current registration or registration certificate expires; and</text> </level> <level label="ii"> <text>the date by which the Unit must receive the renewal application for a renewal to be issued and mailed before the registration or registration certificate expires.</text> </level> </level> </level> <level label="c"> <text>The Unit shall renew the registration or registration certificate of each registrant or registered sales representative that:</text> <level label="1"> <text>submits to the Unit a renewal application on the form provided by the Unit;</text> </level> <level label="2"> <text>would qualify for an initial registration or initial registration certificate;</text> </level> <level label="3"> <level label="i"> <text>for renewal of a registration, pays to the Division a nonrefundable renewal fee based on the number of building permits for the construction of new homes issued to the registrant in the preceding calendar year as follows:</text> <level label="1"> <text>10 or fewer new homes..................................... $400;</text> </level> <level label="2"> <text>11 to 74 new homes....................................... $800; and</text> </level> <level label="3"> <text>75 or more new homes……………………. $1,200; or</text> </level> </level> <level label="ii"> <text>for renewal of a registration certificate, pays to the Division a nonrefundable renewal fee of $300; and</text> </level> </level> <level label="4"> <text>is otherwise entitled to be registered.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-306" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <level label="1"> <text>A registrant shall send the Unit written notice of any change in the information submitted under § 4.5–303(b) of this subtitle within 10 working days after the change is effective.</text> </level> <level label="2"> <text>A registered sales representative shall send the Unit written notice of any change in the information submitted under § 4.5–303(c) of this subtitle within 10 working days after the change is effective.</text> </level> </level> <level label="b"> <text>A registrant and a registered sales representative shall comply with subsection (a) of this section for 1 year after the registrant ceases to be registered.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-307" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <level label="1"> <text>Each registrant shall display its home builder registration number conspicuously on all properties at which the registrant is performing work that requires registration under this title.</text> </level> <level label="2"> <text>If a registrant is building multiple homes in one project area or subdivision, the registrant may post its home builder registration number in one central conspicuous location in the project area or subdivision.</text> </level> </level> <level label="b"> <text>Each registered sales representative shall display the registration certificate conspicuously at the property at which the registered sales representative primarily performs work that requires registration under this title.</text> </level> <level label="c"> <level label="1"> <text>A home builder shall provide each prospective home buyer with a disclosure that states: “The sales representative works for the home builder, which means that he or she may assist the buyer in purchasing the property, but his or her duty of loyalty is only to the home builder.”.</text> </level> <level label="2"> <text>The disclosure under paragraph (1) of this subsection shall be in at least 12–point bold type and shall be included with:</text> <level label="i"> <text>any written materials made available to consumers at the property at which a registered sales representative primarily performs work that requires registration under this title; and</text> </level> <level label="ii"> <text>the first agreement signed by the consumer.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A home builder holding a property open to the public shall display, in a conspicuous manner, a notice to prospective buyers that states: “The sales representative works for the home builder, which means that he or she may assist the buyer in purchasing the property, but his or her duty of loyalty is only to the home builder. As a buyer of a new home, you have the right to obtain your own independent representation to navigate the new home purchasing process.”.</text> </level> <level label="2"> <text>The disclosure required under paragraph (1) of this subsection shall:</text> <level label="i"> <text>use a clear, simple font;</text> </level> <level label="ii"> <text>have letters a minimum of one–half inch in height; and</text> </level> <level label="iii"> <text>be unobstructed from view.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-308" title_number="4.5" title_name="Home Builder Registration" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <level label="1"> <text>The Unit may deny registration or a registration certificate to an applicant, reprimand a registrant or registered sales representative, suspend or revoke a registration or a registration certificate, or impose a civil penalty on a registrant or registered sales representative if the Unit determines that the applicant, registrant, or registered sales representative:</text> <level label="i"> <text>fraudulently or deceptively obtained or attempted to obtain a registration or registration certificate;</text> </level> <level label="ii"> <text>fraudulently or deceptively used a registration or registration certificate;</text> </level> <level label="iii"> <text>presented or attempted to present the home builder registration number of another registrant as the applicant’s or registrant’s home builder registration number;</text> </level> <level label="iv"> <text>used or attempted to use an expired, suspended, or revoked home builder registration number or registration certificate;</text> </level> <level label="v"> <text>presented or attempted to present the registration certificate of another registered sales representative as the applicant’s or registered sales representative’s registration certificate;</text> </level> <level label="vi"> <text>impersonated or falsely represented oneself as a registered home builder or registered sales representative;</text> </level> <level label="vii"> <text>repeatedly violated this title;</text> </level> <level label="viii"> <text>engaged in a pattern of unfair or deceptive trade practices under the Consumer Protection Act, as determined by a final administrative order or judicial decision;</text> </level> <level label="ix"> <text>repeatedly violated a local building, development, or zoning permit law or regulations, or a State or federal law or regulation, including an environmental protection law or regulation, that relates to the fitness and qualification or ability of the applicant or registrant to build homes;</text> </level> <level label="x"> <text>engaged in a pattern of poor workmanship as evidenced by one or more of the following:</text> <level label="1"> <text>repeated unresolved building code violations;</text> </level> <level label="2"> <text>repeated unsatisfied arbitration awards in favor of consumers against the applicant or registered home builder based on incomplete or substandard work; or</text> </level> <level label="3"> <text>an unsatisfied final judgment in favor of a consumer;</text> </level> </level> <level label="xi"> <text>repeatedly engaged in fraud, deception, misrepresentation, or knowing omissions of material facts related to home building contracts;</text> </level> <level label="xii"> <text>had a similar registration, registration certificate, or license denied, suspended, or revoked in another state or jurisdiction;</text> </level> <level label="xiii"> <text>had the renewal of a similar registration, registration certificate, or license denied for any cause other than failure to pay a renewal fee; or</text> </level> <level label="xiv"> <text>in the Chesapeake and Atlantic Coastal Bays Critical Area, as defined under § 8–1802 of the Natural Resources Article, failed to comply with:</text> <level label="1"> <text>the terms of a State or local permit, license, or approval; or</text> </level> <level label="2"> <text>any State or local law, an approved plan, or other legal requirement.</text> </level> </level> </level> <level label="2"> <text>The Critical Area Commission for the Chesapeake and Atlantic Coastal Bays, as established under Title 8, Subtitle 18 of the Natural Resources Article, shall notify the Unit of any applicant or registrant who fails to comply with any requirement under paragraph (1)(xiv) of this subsection.</text> </level> </level> <level label="b"> <level label="1"> <text>The Unit may deny a registration to a nonpublicly traded applicant or suspend or revoke a registration of a nonpublicly traded registrant if a principal of the applicant or registrant, other than a financial institution or a nonprofit organization, that owns at least 10 percent of the applicant or registrant, was a principal of a home builder that had a similar registration or license denied, suspended, or revoked by the Unit or in another state or jurisdiction for any cause other than a failure to pay a renewal fee if the Unit determines that the interests of the public cannot be protected if the applicant or registrant is allowed to act as a home builder in the State.</text> </level> <level label="2"> <text>For the purposes of this subsection, the interests of a principal include interests held by the parents, spouse, or children of the principal.</text> </level> </level> <level label="c"> <text>The Unit shall provide an applicant, registrant, or registered sales representative notice and an opportunity to request a hearing under Title 10, Subtitle 2 of the State Government Article to contest a proposed disciplinary action.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-401" title_number="4.5" title_name="Home Builder Registration" subtitle_number="4" subtitle_name="Remedies"> <level label="a"> <text>The Division shall encourage the owner or buyer to pursue resolution of the dispute pursuant to the existing contract.</text> </level> <level label="b"> <text>The owner’s or buyer’s remedies under this subtitle shall not supersede any consumer contractual obligations, and are in addition to any remedies the owner or buyer may have under the Consumer Protection Act or any other law.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-501" title_number="4.5" title_name="Home Builder Registration" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Except as otherwise provided in this title, a person may not act as, offer to act as, hold oneself out as, or impersonate a registrant or registered sales representative in the State unless the person is a registrant or registered sales representative.</text> </level> <level label="b"> <text>A person that violates this section is guilty of a misdemeanor and, on first conviction, is subject to a fine not exceeding $1,000 and on second or subsequent conviction, is subject to a fine not exceeding $5,000.</text> </level> <level label="c"> <text>The following lenders are exempt from the requirements relating to registration under this title when the lender hires a second registered home builder who would undertake to complete a first home builder’s unfinished project pursuant to a default in obligations of the first home builder to the lender:</text> <level label="1"> <text>a mortgage lender as defined in § 11–501(j)(1)(ii) of the Financial Institutions Article that is a licensee under Title 11, Subtitle 5 of the Financial Institutions Article;</text> </level> <level label="2"> <text>a bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States that maintains its principal office in this State;</text> </level> <level label="3"> <text>an out–of–state bank as defined in § 5–1001 of the Financial Institutions Article that has a branch in this State that accepts deposits;</text> </level> <level label="4"> <text>an institution incorporated under federal law as a savings association or savings bank that does not maintain its principal office in this State but has a branch that accepts deposits in this State; and</text> </level> <level label="5"> <text>a subsidiary or affiliate of an institution described in paragraph (2), (3), or (4) of this subsection that is subject to audit or examination by a regulatory body or agency of this State, the United States, or the state where the subsidiary or affiliate maintains its principal office.</text> </level> </level> <level label="d"> <text>An exempt lender is subject only to §§ 4.5–202(c), 4.5–401, 4.5–503, 4.5–601, 4.5–602, and 4.5–603 of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-502" title_number="4.5" title_name="Home Builder Registration" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Subject to the notice and hearing provisions of Title 10, Subtitle 2 of the State Government Article, the Division may bring a civil administrative action against a person that violates § 4.5-501(a) of this subtitle.</text> </level> <level label="b"> <text>After a hearing, if the Division finds that a person has violated § 4.5-501(a) of this subtitle, the Division may:</text> <level label="1"> <text>order the person to cease and desist from unlawful practice; and</text> </level> <level label="2"> <text>impose a civil penalty of not more than $1,000 for each day of unlawful practice.</text> </level> </level> <level label="c"> <text>Any party aggrieved by a decision and order of the Division under this section may file an appeal as provided under §§ 10-222 and 10-223 of the State Government Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-503" title_number="4.5" title_name="Home Builder Registration" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not advertise in any way that the person is registered under this title unless the advertisement states the home builder registration number of the person in one of the following forms:</text> <text>“Maryland Home Builder Registration No. ____”; or</text> <text>“MHBR No. ____”.</text> </section> <section article="gbr" article_name="Business Regulation" number="4.5-504" title_number="4.5" title_name="Home Builder Registration" subtitle_number="5" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>This section only applies if there is no greater criminal penalty provided under this title or other applicable law.</text> </level> <level label="b"> <text>A person who engages in repeated violations of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-601" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>Except for a building permit for construction to be performed directly by a landowner solely for the landowner’s own use, the building and permits department of a county may not issue a permit for home building unless:</text> <level label="1"> <text>the permit includes the home builder registration number of a registrant; and</text> </level> <level label="2"> <text>the person pays the Guaranty Fund fee required under § 4.5–704 of this title.</text> </level> </level> <level label="b"> <text>Before issuing a permit for home building to a landowner, the building and permits department of a county shall obtain the signature of the landowner affirming that the permit is being issued solely for the purpose of the landowner performing work on the landowner’s own property.</text> </level> <level label="c"> <text>Nothing in this section shall be construed to relieve a registrant from the obligation to obtain all other permits, licenses, and other authorizations for the construction of a new home.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-602" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “building code” includes a code provision concerning mechanical, electrical, fire, plumbing, energy, heating, ventilation, or air-conditioning matters.</text> </level> <level label="b"> <text>A county or municipal corporation shall notify the Director of each registrant who fails to correct a violation of the applicable local or State building code within a reasonable time after the registrant receives notice of the violation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-603" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <level label="a"> <level label="1"> <text>This subsection applies only to a development that contains 11 or more new homes to be built by the same registrant.</text> </level> <level label="2"> <text>Prior to the execution of any contract for the initial sale of a new home, a registrant shall provide the purchaser with written information about any energy–efficient options, including a statement that tax credits may be available related to the energy–efficient options, that are available for installation in the home before construction of the home is completed.</text> </level> </level> <level label="b"> <text>A registrant shall include in any contract for the initial sale of a new home the information required under § 14–117(a)(3), (i), and (m) of the Real Property Article, if applicable.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-604" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <text>A home builder who installs an industrialized building intended for residential use or a mobile home is responsible to the owner for correcting any defects in any component incorporated into the new home except for those industrialized buildings or mobile homes that are the responsibility of the manufacturer of the industrialized building and mobile home pursuant to Title 12, Subtitle 3 of the Public Safety Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="4.5-605" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <text>A contract for the performance of any act for which a home builder registration number is required is not enforceable unless the home builder was registered at the time that the contract was signed by the owner.</text> </section> <section article="gbr" article_name="Business Regulation" number="4.5-606" title_number="4.5" title_name="Home Builder Registration" subtitle_number="6" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “appliance” includes a heating, ventilation, and air–conditioning system.</text> </level> <level label="b"> <text>A registrant shall provide, at the time of closing for the initial sale of a new home, the warranty information for each appliance in the new home that was registered by the registrant, including:</text> <level label="1"> <text>the date the registrant registered the warranty; and</text> </level> <level label="2"> <text>the time remaining under the warranty.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-701" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <text>In this subtitle, “actual loss” means:</text> <level label="1"> <text>the costs of restoration, repair, replacement, or completion that arise from:</text> <level label="i"> <text>the incomplete construction of a new home or the breach of an express or implied warranty, as defined in §§ 10–202 and 10–203 of the Real Property Article; or</text> </level> <level label="ii"> <text>the failure to meet standards or guidelines required in § 14–117 of the Real Property Article; or</text> </level> </level> <level label="2"> <text>deposits or other payments made to a home builder required to be held in an escrow account or protected by a surety bond or irrevocable letter of credit under § 10–301 or § 10–504 of the Real Property Article, that are not returned to a consumer who is entitled to a return of the deposit or other payments.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-702" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <text>This subtitle does not:</text> <level label="1"> <text>limit the authority of the Division to take disciplinary action against a registrant under this subtitle;</text> </level> <level label="2"> <text>limit the availability of other remedies to a claimant; or</text> </level> <level label="3"> <text>require a claimant to exhaust administrative remedies before the Division before bringing an action to court.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-703" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>The Division shall:</text> <level label="1"> <text>establish a Home Builder Guaranty Fund; and</text> </level> <level label="2"> <text>maintain the Guaranty Fund at a level of at least $1,000,000.</text> </level> </level> <level label="b"> <level label="1"> <text>The Division shall deposit all money collected under § 4.5–704 of this subtitle in the Guaranty Fund.</text> </level> <level label="2"> <level label="i"> <text>The State Treasurer is the custodian of the Guaranty Fund.</text> </level> <level label="ii"> <text>The Guaranty Fund shall be invested and reinvested in the same manner as other State funds.</text> </level> <level label="iii"> <text>The State Treasurer shall deposit payments received from the Division under this section into the Guaranty Fund.</text> </level> <level label="iv"> <text>Investment earnings shall be credited to the Guaranty Fund.</text> </level> </level> </level> <level label="c"> <text>The Division shall administer the Guaranty Fund in accordance with this subtitle.</text> </level> <level label="d"> <text>The direct and indirect costs incurred for the administration of and enforcement related to the Guaranty Fund shall be paid from the Registration Fund established under § 4.5–203 of this title.</text> </level> <level label="e"> <text>The accounts and transactions of the Guaranty Fund shall be subject to audit by the Legislative Auditor in accordance with §§ 2–1220 through 2–1227 of the State Government Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-704" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <level label="1"> <text>Subject to the provisions of subsection (c) of this section, a home builder shall pay to a county or a municipal corporation a Guaranty Fund fee per home or residential unit as set by the Division under subsection (c) of this section with each application for a permit for construction of a new home or multiple–unit development.</text> </level> <level label="2"> <text>The home builder may collect the Guaranty Fund fee from the consumer.</text> </level> <level label="3"> <level label="i"> <text>Subject to the provisions of subparagraph (ii) of this paragraph, each month, a county or municipal corporation shall remit all the Guaranty Fund fees to the Division to be deposited in the Guaranty Fund.</text> </level> <level label="ii"> <text>A county or municipal corporation may retain up to 2% of the Guaranty Fund fee revenue that it collects under this subtitle to cover reasonable administrative costs for collection and processing of the Guaranty Fund fee.</text> </level> </level> <level label="4"> <text>The Guaranty Fund fee may be deposited only in the Guaranty Fund.</text> </level> </level> <level label="b"> <text>If a registrant fails to pay the Guaranty Fund fee, the registrant’s home builder registration is suspended until the fee is paid.</text> </level> <level label="c"> <text>The Division shall set the amount of the Guaranty Fund fee required under subsection (a) of this section so as to not exceed $50 per residential unit and to maintain the Guaranty Fund level required under § 4.5–703(a) of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-705" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>Subject to this subtitle a claimant may recover compensation from the Guaranty Fund for an actual loss that results from an act or omission by a registrant as found by the Division or a court of competent jurisdiction.</text> </level> <level label="b"> <text>Before submitting a claim to the Guaranty Fund, a consumer shall:</text> <level label="1"> <text>send a registrant a written notice describing the alleged defect or other claim for which the consumer intends to seek recovery; and</text> </level> <level label="2"> <text>permit the registrant access, during regular business hours, to the consumer’s property to inspect, determine the cause of, and remedy the alleged defect or other claim within a reasonable period of time.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>If a consumer has a new home warranty security plan, the consumer may also seek recovery from the Guaranty Fund if the consumer has first:</text> <level label="1"> <text>filed a claim with the new home warranty security plan; and</text> </level> <level label="2"> <text>exhausted the plan’s claim process.</text> </level> </level> <level label="ii"> <text>A consumer seeking recovery under subparagraph (i) of this paragraph may not receive more than one recovery for the same actual loss.</text> </level> </level> <level label="2"> <text>A claimant who has also filed a claim with a new home warranty security plan shall include with the claim against the Guaranty Fund:</text> <level label="i"> <text>a copy or description of the claim filed with the new home warranty security plan;</text> </level> <level label="ii"> <text>any documents submitted by the claimant in support of the warranty claim, including engineering or inspection reports;</text> </level> <level label="iii"> <text>any documents submitted on behalf of the home builder or warranty plan in connection with the warranty claim, including engineering or inspection reports;</text> </level> <level label="iv"> <text>disclosure of any recoveries received in connection with the warranty claim; and</text> </level> <level label="v"> <text>if all or part of the warranty claim was denied, a copy of the denial.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Division may deny a claim if the Division finds that the claimant unreasonably rejected good faith efforts by the registrant to resolve the claim.</text> </level> <level label="2"> <text>In determining whether a claim should be denied under paragraph (1) of this subsection, the Division shall consider whether the claimant provided the registrant with notice and a reasonable opportunity to access and inspect and repair the claimed defect as required under subsection (b) of this section.</text> </level> </level> <level label="e"> <text>The Division may not award from the Guaranty Fund:</text> <level label="1"> <text>more than $50,000 to one claimant for acts or omissions of one registrant;</text> </level> <level label="2"> <text>more than $500,000 to all claimants for acts or omissions of one registrant unless, after the Division has paid out $500,000 on account of acts or omissions of the registrant, the registrant reimburses $500,000 to the Guaranty Fund; or</text> </level> <level label="3"> <text>an amount for attorney’s fees, consequential damages, court costs, interest, personal injury damages, or punitive damages.</text> </level> </level> <level label="f"> <text>A claim against the Guaranty Fund based on the act or omission of a particular registrant may not be made by:</text> <level label="1"> <text>a spouse or other immediate relative of the registrant;</text> </level> <level label="2"> <text>an employee or principal of the registrant; or</text> </level> <level label="3"> <text>an immediate relative of an employee or principal of the registrant.</text> </level> </level> <level label="g"> <level label="1"> <text>A claimant may bring a claim against the Guaranty Fund within 2 years after the claimant discovered or, should have discovered the loss or damage or within 2 years after the expiration of the warranty under § 10–204 of the Real Property Article, whichever occurs first.</text> </level> <level label="2"> <text>If a claimant has filed a claim with a new home warranty security plan, a claimant may bring a claim against the Guaranty Fund within 4 months after the claims process of the home warranty security plan is exhausted.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-706" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>To begin a proceeding to recover from the Guaranty Fund, a claimant shall submit to the Division’s mediation unit a written complaint that states:</text> <level label="1"> <text>the amount claimed based on the actual loss;</text> </level> <level label="2"> <text>the facts giving rise to the claim;</text> </level> <level label="3"> <text>whether there is other evidence that supports the claim, including expert reports, photographs, or videotapes and that the evidence is included with the complaint;</text> </level> <level label="4"> <text>what documents are related to the claim and that copies of the documents are attached, including the contract of sale; and</text> </level> <level label="5"> <text>any other information that the Division requires.</text> </level> </level> <level label="b"> <text>The Division’s mediation unit shall:</text> <level label="1"> <text>send a copy of the complaint to the registrant alleged to be responsible for the actual loss;</text> </level> <level label="2"> <text>require a written response to the complaint within 30 days that includes:</text> <level label="i"> <text>any evidence the registrant has concerning the claim, including expert reports, photographs, or videotapes; and</text> </level> <level label="ii"> <text>any other information that the Division requires;</text> </level> </level> <level label="3"> <text>attempt to resolve the complaint through mediation, taking into consideration applicable laws, including express and implied warranties and the provisions of § 4.5–401 of this title; and</text> </level> <level label="4"> <text>refer the complaint to the Division as a claim against the Guaranty Fund if:</text> <level label="i"> <level label="1"> <text>the home builder fails to respond as required by this section;</text> </level> <level label="2"> <text>the mediation unit concludes that the complaint cannot be resolved through mediation; or</text> </level> <level label="3"> <text>in mediation, the parties do not mutually agree to an arbitrator; and</text> </level> </level> <level label="ii"> <text>the claimant executes a claim form prepared by the Division stating under oath that the claimant wishes to seek recovery from the Guaranty Fund.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>If a claimant’s new home contract includes a written agreement with a registrant to submit a dispute to arbitration and the agreement authorizes:</text> <level label="i"> <text>the registrant to select the arbitrator or the arbitration service, the claimant may elect whether to first seek recovery from the Guaranty Fund or submit the dispute to arbitration; or</text> </level> <level label="ii"> <text>if the claimant’s new home contract provides for mutual selection of the arbitration service and the claimant and registrant have mutually agreed on an arbitration service, the claimant must submit the dispute to arbitration prior to seeking recovery from the Guaranty Fund.</text> </level> </level> <level label="2"> <text>If the claimant and the registrant submit the dispute to arbitration under the written agreement in the contract and the arbitrator makes a final judgment or final award in favor of the claimant:</text> <level label="i"> <text>the claimant may make a claim against the Guaranty Fund; but</text> </level> <level label="ii"> <text>if the registrant pays the award amount to the claimant within 90 days of the final award, the Division shall dismiss the claim against the Guaranty Fund.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-707" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>The procedures for notice, hearings, and judicial review that apply to proceedings under Title 3, Subtitle 2 of the Courts and Judicial Proceedings Article also apply to proceedings to recover from the Guaranty Fund.</text> </level> <level label="b"> <text>On receipt of a claim, the Division shall:</text> <level label="1"> <text>send a copy of the claim to the registrant alleged to be responsible for the actual loss; and</text> </level> <level label="2"> <text>require a written response to the claim within 30 days.</text> </level> </level> <level label="c"> <level label="1"> <text>The Division:</text> <level label="i"> <text>shall review the claim and any response to it; and</text> </level> <level label="ii"> <text>may refer the claim for investigation.</text> </level> </level> <level label="2"> <text>On the basis of its review and any investigation, the Division may:</text> <level label="i"> <text>set the matter for a hearing with the Office of Administrative Hearings;</text> </level> <level label="ii"> <text>dismiss the claim, if the claim is frivolous, legally insufficient, or made in bad faith; or</text> </level> <level label="iii"> <text>if the total claim against a particular registrant does not exceed $7,500, issue a proposed order to pay all or part of the claim or deny the claim.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Division shall send a proposed order issued under subsection (c)(2)(iii) of this section to the claimant and the registrant, at the most recent address on record with the Division, by:</text> <level label="i"> <text>personal delivery; or</text> </level> <level label="ii"> <text>both regular mail and certified mail, return receipt requested.</text> </level> </level> <level label="2"> <text>Within 21 days after service, receipt, or attempted delivery of the proposed order, the claimant or registrant may submit to the Division:</text> <level label="i"> <text>a written request for a hearing before the Division; or</text> </level> <level label="ii"> <text>a written exception to the proposed order.</text> </level> </level> <level label="3"> <text>If the claimant or registrant submits a timely exception to the proposed order, the Division may:</text> <level label="i"> <text>issue a revised proposed order;</text> </level> <level label="ii"> <text>set a hearing on the claim; or</text> </level> <level label="iii"> <text>dismiss the claim.</text> </level> </level> <level label="4"> <text>Unless the claimant or registrant submits a timely request for a hearing or timely exception, the proposed order is final.</text> </level> </level> <level label="e"> <text>At a hearing on a claim, the claimant has the burden of proof.</text> </level> <level label="f"> <text>A claimant and registrant may participate in a Guaranty Fund proceeding without representation by counsel.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-708" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <level label="1"> <text>The Division may join a proceeding on a claim against the Guaranty Fund with a disciplinary proceeding against a registrant under this subtitle if the disciplinary hearing is based on the same facts alleged in the claim.</text> </level> <level label="2"> <text>In a consolidated proceeding the claimant is a party, and may participate in the hearing to the extent necessary to establish the claim.</text> </level> </level> <level label="b"> <level label="1"> <text>Notwithstanding § 4.5–702(2) of this subtitle, a claimant may not concurrently submit a claim to recover from the Guaranty Fund and bring an action in a court of competent jurisdiction against a registrant based on the same facts alleged in the claim.</text> </level> <level label="2"> <text>If, after filing a claim, the claimant brings an action in a court of competent jurisdiction based on the same facts alleged in the pending claim, the Division shall stay its proceedings on the claim until there is a final judgment and all rights to appeal are exhausted.</text> </level> <level label="3"> <text>To the extent that a final judgment or final award in arbitration is based on the same factual and legal issues alleged in a pending claim, the Division shall:</text> <level label="i"> <text>approve the claim against the Guaranty Fund, if the judgment or award is decided in favor of the claimant and the registrant has failed to pay the judgment or award; or</text> </level> <level label="ii"> <text>dismiss the claim against the Guaranty Fund, if the judgment or award is decided in favor of the registrant.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-709" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <text>A party to a proceeding before the Division who is aggrieved by a final decision of the Division in a contested case, as defined in § 10–202 of the State Government Article, may take an appeal as allowed in §§ 10–222 and 10–223 of the State Government Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="4.5-710" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>The Division may order payment of a claim against the Guaranty Fund only if:</text> <level label="1"> <text>the decision or order of the Division is final in accordance with Title 10, Subtitle 2 of the State Government Article and all rights of appeal are exhausted; or</text> </level> <level label="2"> <text>the claimant provides the Division with a certified copy of a final judgment of a court of competent jurisdiction or a final award in arbitration, with all rights of appeal exhausted, in which the court or arbitrator:</text> <level label="i"> <text>expressly made findings of fact that support the claimant’s right to recover under § 4.5–705(a) of this subtitle; and</text> </level> <level label="ii"> <text>has found the value of the actual loss.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as otherwise provided in this subsection, the Division shall pay approved claims in the order submitted.</text> </level> <level label="2"> <text>If approved claims submitted to the Division against a registrant exceed $500,000, less the amount of unreimbursed claim payments previously made for the registrant, the Division may pay the approved claims proportionately so that each claimant receives the same percentage payment of the claims.</text> </level> <level label="3"> <text>After the Guaranty Fund is reimbursed, the Division shall pay unsatisfied approved claims.</text> </level> </level> <level label="c"> <text>If there is not enough money in the Guaranty Fund to pay an approved claim wholly or partially, the Division shall pay the unpaid claim:</text> <level label="1"> <text>when enough money is deposited in the Guaranty Fund; and</text> </level> <level label="2"> <text>in the order that each claim originally was filed with a court of competent jurisdiction or submitted to the Division.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-711" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <level label="1"> <text>After the Division pays a claim from the Guaranty Fund:</text> <level label="i"> <text>the Division is subrogated to all rights of the claimant in the claim up to the amount paid;</text> </level> <level label="ii"> <text>the claimant shall assign to the Division all rights of the claimant in the claim up to the amount paid; and</text> </level> <level label="iii"> <text>the Division has a right to reimbursement of the Guaranty Fund by the registrant whom the Division finds responsible for the act or omission giving rise to the claim for:</text> <level label="1"> <text>the amount paid from the Guaranty Fund; and</text> </level> <level label="2"> <text>interest on that amount at a rate determined by the Division so as not to exceed the legal rate of interest on a judgment in place at the time the claim is approved.</text> </level> </level> </level> <level label="2"> <text>All money that the Division recovers on a claim shall be deposited in the Guaranty Fund.</text> </level> </level> <level label="b"> <text>If, within 60 days after the Division gives notice, a registrant on whose account a claim was paid does not reimburse the Guaranty Fund in full, the Division may sue the registrant in a court of competent jurisdiction for the unreimbursed amount.</text> </level> <level label="c"> <text>The Division is entitled to a judgment for the unreimbursed amount if the Division proves that:</text> <level label="1"> <text>a claim was paid from the Guaranty Fund on account of the registrant;</text> </level> <level label="2"> <text>the registrant has not reimbursed the Guaranty Fund in full;</text> </level> <level label="3"> <text>the registrant was given notice and an opportunity to participate in a hearing on the claim before the Division; and</text> </level> <level label="4"> <level label="i"> <text>the Division directed payment based on a final judgment of a court of competent jurisdiction or a final award in arbitration; or</text> </level> <level label="ii"> <text>the decision or order of the Division is final in accordance with Title 10, Subtitle 2 of the State Government Article and there is no pending appeal.</text> </level> </level> </level> <level label="d"> <text>The Division may refer to the Central Collection Unit for collection under §§ 13–912 through 13–919 of the Tax – General Article a debt owed to the Division by a registrant on whose account a claim was paid from the Guaranty Fund and who is at least 12 months behind in reimbursement payments to the Guaranty Fund.</text> </level> <level label="e"> <text>For the purpose of excepting to a discharge of a registrant under federal bankruptcy law, the Division is a creditor of the registrant for the amount paid from the Guaranty Fund.</text> </level> <level label="f"> <level label="1"> <level label="i"> <text>If a person liable for reimbursing the Guaranty Fund under this section receives a demand for reimbursement and fails to reimburse the Guaranty Fund, the reimbursement amount and any accrued interest or costs are a lien in favor of the State on any real property of the person if the lien is recorded and indexed as provided in this subsection.</text> </level> <level label="ii"> <text>Interest shall continue at the rate of interest on a judgment as provided in § 11–107(a) of the Courts Article until the full amount due the Guaranty Fund is paid.</text> </level> </level> <level label="2"> <text>The lien in favor of the State created by this subsection may not attach to specific property until the State Central Collection Unit records written notice of the lien in the office of the clerk of the court for the county in which the property subject to the lien or any part of the property is located.</text> </level> <level label="3"> <text>The lien in favor of the State created by this subsection does not have priority as to any specific property over any person who is a lienholder of record at the time the notice required under paragraph (2) of this subsection is recorded.</text> </level> <level label="4"> <text>The notice required under paragraph (2) of this subsection shall contain:</text> <level label="i"> <text>the name and address of the person against whose property the lien exists;</text> </level> <level label="ii"> <text>the amount of the lien;</text> </level> <level label="iii"> <text>a description of or reference to the property subject to the lien; and</text> </level> <level label="iv"> <text>the date the Guaranty Fund paid the claim giving rise to the lien.</text> </level> </level> <level label="5"> <text>On presentation of a release of any lien in favor of the State created by this subsection, the clerk of the court in which the lien is recorded and indexed shall record and index the release and shall note in the lien docket the date the release is filed and the fact that the lien is released.</text> </level> <level label="6"> <text>The notice required under paragraph (2) of this subsection and any release filed under paragraph (5) of this subsection shall be indexed with the judgment lien records maintained by the office of the clerk of the court where the notice is recorded.</text> </level> <level label="7"> <text>The clerk may collect a reasonable fee for recording and indexing each notice of lien or release of any lien under this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-712" title_number="4.5" title_name="Home Builder Registration" subtitle_number="7" subtitle_name="Home Builder Guaranty Fund"> <level label="a"> <text>If the Division pays a claim against the Guaranty Fund based on an act or omission of a registrant, the Division may suspend the home builder registration until the registrant reimburses the Fund in full for:</text> <level label="1"> <text>the amount paid from the Guaranty Fund; and</text> </level> <level label="2"> <text>interest on that amount at a rate determined by the Division so as not to exceed the legal rate of interest on a judgment in place at the time a claim is approved.</text> </level> </level> <level label="b"> <text>Reimbursement of the Guaranty Fund in full by a registrant, by itself, does not nullify or modify the effect of a disciplinary proceeding against a registrant.</text> </level> <level label="c"> <text>If a home builder holds a license or registration in Montgomery County, the county may suspend the license as provided in this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="4.5-801" title_number="4.5" title_name="Home Builder Registration" subtitle_number="8" subtitle_name="Short Title"> <text>This title may be cited as the Maryland Home Builder Registration Act.</text> </section>