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. 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.

Each person that constructs new homes for sale to the public shall maintain general liability insurance for at least $100,000. If a home builder’s registration has been revoked and the home builder applies for a new registration, the Unit shall, in its discretion, approve the application on the applicant’s fulfillment of specified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.

To apply for registration as a home builder or a home builder sales representative, an applicant shall: submit to the Unit under oath an application on the form provided by the Unit; and pay the nonrefundable application fee required by this subtitle. The application for registration as a home builder shall require an applicant to provide: the applicant’s name; the applicant’s business address, telephone number, and, if applicable, electronic mail address; in the case of an applicant who is an individual, the applicant’s Social Security number; in the case of an applicant other than an individual: the applicant’s federal employer identification number; and the names and addresses of all principals of the applicant; the names of all applicants and principals who have previously applied for registration, and the disposition of all previous applications; the name of any applicant or principal that was a principal in an entity that previously applied for registration; a list of all states and other jurisdictions in which the applicant holds a similar registration or license; a list of all states and other jurisdictions in which the applicant has had a similar registration or license suspended or revoked; a statement whether any pending judgments or tax liens exist against the applicant; the election made by the applicant regarding deposit moneys under § 10–301 of the Real Property Article; and 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; if the applicant participates in a new home warranty security plan, the name and address of the warranty company; and the name of the insurance carrier and the policy number of the general liability coverage required under § 4.5–302 of this subtitle. The application for registration as a home builder sales representative shall require an applicant to provide: the applicant’s name; the applicant’s business address, telephone number, and, if applicable, electronic mail address; the applicant’s Social Security number; a list of all states and other jurisdictions in which the applicant holds a similar registration or license; a list of all states and other jurisdictions in which the applicant has had a similar registration or license suspended or revoked; 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 a statement whether any pending judgments or tax liens exist against the applicant.

The Unit shall register and issue a home builder registration number to an applicant for a home builder registration that: meets the requirements of this title; and pays to the Division an initial nonrefundable 2–year registration fee of $800. A home builder registration issued under this title may not be transferred, assigned, or pledged. A valid home builder registration authorizes the registrant to act as a home builder in the State. 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. 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. 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. The county shall remit the Guaranty Fund administrative fee to the Unit to be deposited in the Registration Fund.

The Unit shall register and issue a registration certificate to an applicant for a home builder sales representative registration certificate that: meets the requirements of this title; and pays to the Division an initial nonrefundable 2–year registration fee of $300. A Unit shall include on each registration certificate that the Unit issues: that this is a registration certificate for a registered sales representative; the full name of the certificate holder; the certificate holder’s employer’s registration number or the name of the licensed or registered Montgomery County home builder; and the certificate holder’s registration number. A registration certificate issued under this title may not be transferred, assigned, or pledged. A valid registration certificate authorizes the certificate holder to act as a home builder sales representative in the State. 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.

Unless renewed under this section, a registration or registration certificate expires on the second anniversary of its effective date. 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. Once expired, a registration or a registration certificate may not be renewed. 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: a renewal application form; and a notice that states: the date on which the current registration or registration certificate expires; and 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. The Unit shall renew the registration or registration certificate of each registrant or registered sales representative that: submits to the Unit a renewal application on the form provided by the Unit; would qualify for an initial registration or initial registration certificate; 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: 10 or fewer new homes..................................... $400; 11 to 74 new homes....................................... $800; and 75 or more new homes……………………. $1,200; or for renewal of a registration certificate, pays to the Division a nonrefundable renewal fee of $300; and is otherwise entitled to be registered.

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. 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. 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.

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. 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. 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. 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.”. The disclosure under paragraph (1) of this subsection shall be in at least 12–point bold type and shall be included with: 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 the first agreement signed by the consumer. 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.”. The disclosure required under paragraph (1) of this subsection shall: use a clear, simple font; have letters a minimum of one–half inch in height; and be unobstructed from view.

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: fraudulently or deceptively obtained or attempted to obtain a registration or registration certificate; fraudulently or deceptively used a registration or registration certificate; presented or attempted to present the home builder registration number of another registrant as the applicant’s or registrant’s home builder registration number; used or attempted to use an expired, suspended, or revoked home builder registration number or registration certificate; presented or attempted to present the registration certificate of another registered sales representative as the applicant’s or registered sales representative’s registration certificate; impersonated or falsely represented oneself as a registered home builder or registered sales representative; repeatedly violated this title; 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; 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; engaged in a pattern of poor workmanship as evidenced by one or more of the following: repeated unresolved building code violations; repeated unsatisfied arbitration awards in favor of consumers against the applicant or registered home builder based on incomplete or substandard work; or an unsatisfied final judgment in favor of a consumer; repeatedly engaged in fraud, deception, misrepresentation, or knowing omissions of material facts related to home building contracts; had a similar registration, registration certificate, or license denied, suspended, or revoked in another state or jurisdiction; had the renewal of a similar registration, registration certificate, or license denied for any cause other than failure to pay a renewal fee; or in the Chesapeake and Atlantic Coastal Bays Critical Area, as defined under § 8–1802 of the Natural Resources Article, failed to comply with: the terms of a State or local permit, license, or approval; or any State or local law, an approved plan, or other legal requirement. 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. 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. For the purposes of this subsection, the interests of a principal include interests held by the parents, spouse, or children of the principal. 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.