§ 8–405
Statutes in effect as of October 1, 2026.
Md. Code Ann., Bus. Reg. § 8-405 (2026)
Title 8. Home Improvement
Subtitle 4. Home Improvement Guaranty Fund
§ 8–405LinkCopy Citation
(a)
Subject to this subtitle, an owner may recover compensation from the Fund for an actual loss that results from an act or omission by a licensed contractor or a violation of § 8–607(4) of this title as found by the Commission or a court of competent jurisdiction.
(b)
For purposes of recovery from the Fund, the act or omission of a licensed contractor includes the act or omission of a subcontractor, salesperson, or employee of the licensed contractor, whether or not an express agency relationship exists.
(c)
A claimant shall comply with a written agreement to submit a dispute to arbitration before seeking recovery from the Fund.
(d)
The Commission may deny a claim if the Commission finds that the claimant unreasonably rejected good faith efforts by the contractor to resolve the claim.
(e)
The Commission may not award from the Fund:
(1)
more than $30,000 to one claimant for acts or omissions of one contractor;
(2)
more than $250,000 to all claimants for acts or omissions of one contractor unless, after the Commission has paid out $250,000 on account of acts or omissions of the contractor, the contractor reimburses $250,000 to the Fund;
(3)
an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;
(4)
an amount as a result of a default judgment in court; or
(5)
an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.
(f)
(1)
A claim against the Fund based on the act or omission of a particular contractor may not be made by:
(i)
a spouse or other immediate relative of the contractor;
(ii)
an employee, officer, or partner of the contractor; or
(iii)
an immediate relative of an employee, officer, or partner of the contractor.
(2)
An owner may make a claim against the Fund only if the owner:
(i)
resides in the home as to which the claim is made; or
(ii)
does not own more than three residences or dwelling places.
(g)
A claim shall be brought against the Fund within 3 years after the claimant discovered or, by use of ordinary diligence, should have discovered the loss or damage.