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<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>
