# Business Regulation (GBR)

## Title 8. Home Improvement

### Subtitle 6. Prohibited Acts; Penalties

#### Section 8-601

(a) Except as otherwise provided in this title, a person may not act or offer to act as a contractor in the State unless the person has a contractor license.

(b) Except as otherwise provided in this title, a person may not sell or offer to sell a home improvement in the State unless the person has a contractor license or salesperson license.

(c) A person who violates this section is guilty of a misdemeanor and, on first conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both and, on a second or subsequent conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 2 years or both.

#### Section 8-602

(a) A person may not accept a completion certificate or other proof that performance of a home improvement contract is complete or satisfactorily concluded with knowledge that the document or proof is false and the performance is incomplete.

(b) If a person knows or has good reason to know that a completion certificate or other proof is false, the person may not utter, offer, or use the document or proof to:

  (1) make or accept an assignment or negotiation of the right to receive payment from an owner under a home improvement contract; or

  (2) get or grant credit or a loan on the security of the right to receive payment under a home improvement contract.

(c) A person who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.

#### Section 8-605

A contractor may not:

(1) abandon or fail to perform, without justification, a home improvement contract; or

(2) deviate materially from plans or specifications without the consent of the owner.

#### Section 8-606

A salesperson may not fail to account for or remit to the contractor whom the salesperson represents a payment received in connection with selling a home improvement.

#### Section 8-607

A person may not:

(1) make a substantial misrepresentation when obtaining a home improvement contract;

(2) make a false promise that is likely to influence, persuade, or induce in connection with a home improvement contract;

(3) misrepresent a material fact when applying for a license; or

(4) fail to give the written notice required under Sec. 8-501(c)(2) and (3) of this title.

#### Section 8-608

A person may not commit fraud when executing or materially altering a home improvement contract, mortgage, promissory note, or other document incident to performing or selling a home improvement.

#### Section 8-609

A person may not prepare, arrange, accept, or participate in arranging a mortgage, promissory note, or other evidence of debt for performing or selling a home improvement with knowledge that the evidence of debt states a greater monetary obligation than the consideration, including a time sale price, for the home improvement.

#### Section 8-610

(a) A person may not:

  (1) directly or indirectly publish a false, deceptive, or misleading advertisement about home improvement; or

  (2) advertise or offer, by any means, to perform a home improvement if the person does not intend to accept a home improvement contract:

    (i) to do the particular home improvement; or

    (ii) at the price advertised or offered.

(b) An advertisement that is subject to and complies with regulations adopted by the Federal Trade Commission is not false, deceptive, or misleading.

#### Section 8-611

A licensee may not violate:

(1) a building law of the State or a political subdivision of the State;

(2) a safety or labor law of the State;

(3) the Maryland Workers' Compensation Act; or

(4) the lead paint abatement accreditation requirement under Sec. 6-1002 of the Environment Article or any regulation adopted under that section.

#### Section 8-612

A person may not perform or sell a home improvement with or through another person who is required to be licensed under this title but is not licensed.

#### Section 8-613

A contractor may not fail to notify the Commission of an employment or other contractual relationship between the contractor and a salesperson.

#### Section 8-614

A person may not act as a contractor or sell a home improvement under a name other than that under which the person is licensed.

#### Section 8-615

A person may not advertise in any way that the person is licensed under this title unless the advertisement states the license number of the person in one of the following forms: "Maryland Home Improvement Commission License No. _____" or "MHIC No. _____".

#### Section 8-616

A person may not fail to comply with a lawful order or requirement of the Commission under this title.

#### Section 8-617

(a) A person may not demand or receive any payment for a home improvement before the home improvement contract is signed.

(b) A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time of execution of the home improvement contract.

#### Section 8-620

(a)

  (1) The Commission may impose on a person who violates this title, including Sec. 8-607(4) of this subtitle, a civil penalty not exceeding $5,000 for each violation, whether or not the person is licensed under this title.

  (2) The Commission shall pay any penalty collected under this subsection into the General Fund of the State.

(b) In setting the amount of a civil penalty, the Commission shall consider:

  (1) the seriousness of the violation;

  (2) the good faith of the violator;

  (3) any previous violations;

  (4) the harmful effect of the violation on the complainant, the public, and the business of home improvement;

  (5) the assets of the violator; and

  (6) any other relevant factors.

(c)

  (1) The Commission may establish by regulation a schedule of violations and fines to be used for civil citations issued under this title.

  (2) A citation issued by the Commission shall include:

    (i) the name and address of the person charged;

    (ii) the nature of the violation;

    (iii) the location and time of the violation;

    (iv) the amount of the fine;

    (v) the manner, location, and time in which the fine may be paid;

    (vi) the cited person's right to a hearing for the violation; and

    (vii) a warning that failure to pay the fine or to contest liability in a timely manner in accordance with the citation:

      (1) is an admission of liability; and

      (2) may result in an entry of a default judgment that may include the fine, court costs, and administrative expenses.

  (3) The Commission shall retain a copy of the citation.

  (4) All money collected under this subsection shall be paid in accordance with Sec. 8-403(b) of this title.

#### Section 8-623

(a) This section only applies if there is no greater criminal penalty provided under this title or other applicable law.

(b) A person who violates this title is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)