Real Property (GRP) — Title 10. Sales of Property
Statutes in effect as of October 1, 2026.
Subtitle 1. Land Installment Contracts
Md. Code Ann., Real Prop. § 10-101 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–101LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated unless otherwise apparent from context.
(b)
“Down payment” means the payment made by the purchaser to the vendor on account of the purchase price at or before the time of the execution of a land installment contract.
(c)
“Land installment contract” means a legally binding executory agreement under which:
(1)
The vendor agrees to sell an interest in property to the purchaser and the purchaser agrees to pay the purchase price in five or more subsequent payments exclusive of the down payment, if any; and
(2)
The vendor retains title as security for the purchaser’s obligation.
(d)
“Property” means improved property or improved chattels real, occupied or to be occupied by the purchaser as a dwelling, or an unimproved, subdivided lot or lots intended to be improved for residential purposes.
(e)
“Purchaser” means a natural person who purchases property subject to a land installment contract, or any legal successor in interest to him regardless of whether the person has entered into an agreement as to extension, default, or refund.
(f)
“Vendor” means any person who makes a sale of property by means of a land installment contract.
Md. Code Ann., Real Prop. § 10-102 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–102LinkCopy Citation
(a)
Every land installment contract shall be evidenced by a contract signed by all parties to it and containing all the terms to which they have agreed.
(b)
At or before the time the purchaser signs the instrument, the vendor shall deliver to him an exact copy and the purchaser shall give the vendor a receipt showing that he has received the copy of the instrument. If the copy was not executed by the vendor at the time the purchaser signed, the vendor shall deliver a copy of the instrument signed by him within 15 days after he receives notice that the purchaser has signed and the purchaser shall give the vendor a receipt showing that he has received the copy. If the vendor fails to deliver the copy within 15 days, the contract signed by the purchaser is void at his option, and the vendor, immediately, on demand, shall refund to the purchaser all payments and deposits that have been made.
(c)
The receipt for the delivery of a copy of a contract shall be printed in 12–point bold type or larger, typewritten or written in legible handwriting. If contained in the contract, the receipt shall be printed, typewritten, or written immediately below the signature on the contract and shall be signed separately.
(d)
Until the purchaser signs a land installment contract and receives a copy signed by the vendor, the purchaser has an unconditional right to cancel the contract and to receive immediate refund of all payments and deposits made on account of or in contemplation of the contract. A request for a refund operates to cancel the contract.
(e)
When any payment or deposit is accepted by the vendor from a purchaser, before the purchaser signs a land installment contract and receives a copy, the vendor immediately shall deliver to him a receipt, which clearly states in 12–point type or larger, in typewriting or in legible handwriting, his rights under subsection (d) of this section.
(f)
Within 15 days after the contract is signed by both the vendor and purchaser, the vendor shall cause the contract to be recorded among the land records of the county where the property lies and shall mail the recorder’s receipt to the purchaser. This duty of recordation and mailing of receipt shall be written clearly or printed on the contract. Failure to do so, or to record as required under this section within the time stipulated, gives the purchaser the unconditional right to cancel the contract and to receive immediate refund of all payments and deposits made on account of or in contemplation of the contract, if the purchaser exercises the right to cancel before the vendor records the contract.
Md. Code Ann., Real Prop. § 10-103 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–103LinkCopy Citation
(a)
Every land installment contract shall contain all the following information:
(1)
The full name, the place of residence, and post office address of every party to the contract;
(2)
The date when signed by the purchaser;
(3)
A legal description of the property covered by the contract;
(4)
A disclosure, with respect to the six–month period prior to the date of purchase, of every transfer of title to the property, the sale price of each transfer, and the substantiated cost to the vendor of repairs or improvements;
(5)
A provision that the vendee has the right to accelerate any installment payment;
(6)
Provisions stating clearly (i) any collateral security taken for the purchaser’s obligation under the contract, and (ii) whether or not the vendor has received any written notice from any public agency requiring any repairs or improvements to be made to the property described in the contract;
(7)
The following notice in 12–point bold type or larger, typewritten or handwritten legibly directly above the space reserved in the contract for the signature of the purchaser:
Notice to Purchaser
You are entitled to a copy of this contract at the time you sign it; and
(8)
The following notice, in 12–point bold type or larger, typewritten or handwritten legibly, directly below the space reserved in the contract for the signature of the purchaser acknowledging the receipt of a copy of the contract:
In the event of default, the purchaser may be liable to a default judgment.
(b)
The contract also shall recite, in simple tabular form, the following separate items in the following order:
(1)
The cash price of the property sold;
(2)
Any charge or fee for any service which is included in the contract separate from the cash price;
(3)
The cost to the purchaser of any insurance coverage from the date of the contract, for the payment of which credit is to be extended to the purchaser, the amount or extent and expiration date of the coverage, a concise description of the type of coverage, and every party to whom the insurance is payable;
(4)
The sum of items (1), (2), and (3) of this subsection;
(5)
The amount of any down payment on behalf of the purchaser;
(6)
The principal balance owed, which is the sum of item (4) less item (5) of this subsection;
(7)
The amount and time of each installment payment and the total number of periodic installments;
(8)
The interest on the unpaid balance not exceeding the percentage per annum allowed by § 12–404(b) of the Commercial Law Article, provided that points may not be charged; and
(9)
Any ground rent, taxes, and other public charges.
(c)
The installment payments first shall be applied by the vendor to the payment of:
(1)
Taxes, assessments, and other public charges levied or assessed against the property and paid by the vendor;
(2)
Any ground rent paid by the vendor;
(3)
Insurance premiums on the property paid by the vendor;
(4)
Interest on unpaid balance owed by the purchaser at a rate not exceeding the percentage per annum allowed by § 12–404(b) of the Commercial Law Article; and
(5)
The principal balance owed by the purchaser.
(d)
No vendor may place or hold any mortgage on any property sold under a land installment contract in any amount greater than the balance due under the contract, nor may any mortgage require payments in excess of the periodic payments required under the contract.
Md. Code Ann., Real Prop. § 10-104 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–104LinkCopy Citation
Every land installment contract shall be indexed and recorded among the land records in the office of the clerk of the circuit court of the county where the property which is the subject of the contract is located. With regard to any person who claims any interest in or lien on the property arising after the time of recording, the property is deemed to be held from the time of recording by the then record owner of fee simple or leasehold title to the property, subject to the rights and interest of the purchaser of the contract as stated in the contract.
Md. Code Ann., Real Prop. § 10-105 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–105LinkCopy Citation
(a)
If the contract fixes no earlier period, when 40 percent or more of the original cash price of the property is paid, the purchaser may demand a grant of the premises mentioned in the contract, on the condition that he execute a purchase money mortgage to the vendor, or to a mortgagee procured by the purchaser. If any mortgage is executed pursuant to the purchaser’s demand for grant under this subsection, the purchaser is liable for expenses, such as title search, drawing deed and mortgage, one half of cost of federal and State revenue stamps, notary fees, recording, reasonable building association fees, judgment reports, and tax lien report.
(b)
The periodic principal and interest payments required by the mortgage may not exceed the periodic principal and interest payments otherwise required by the land installment contract, except with the consent of the mortgagor. This consent may be evidenced by the execution of a mortgage.
(c)
The mortgagee may require the usual covenants by the mortgagor for the payment of the mortgage debt, the taxes on the mortgaged property, any ground rent, and the premiums on fire and extended coverage insurance in an amount equal to the mortgage indebtedness, if obtainable, and if not, then in the highest amount of insurance obtainable. The mortgage also may require the usual remedies on default by way of a power of sale to the mortgagee, his assigns, or his attorney or assent to a decree for sale by the mortgagor pursuant to the Maryland Rules, or both.
(d)
The deed and mortgage executed pursuant to this section shall supersede entirely the land installment contract.
Md. Code Ann., Real Prop. § 10-106 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–106LinkCopy Citation
If the purchaser, on or before the date designated in a notice from the vendor of intention to terminate a land installment contract due to the purchaser’s default, complies with the terms and conditions in respect to which the default has occurred, the contract continues in full force and effect, notwithstanding any contrary provision in the contract.
Md. Code Ann., Real Prop. § 10-107 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–107LinkCopy Citation
(a)
Every vendor under a land installment contract shall mail or deliver a statement to the purchaser:
(1)
When 40 percent of the original cash price has been paid; and
(2)
(i)
Annually within 30 days of January 1; or
(ii)
On demand of the purchaser no more than twice a year.
(b)
The statement shall show:
(1)
The total amount paid for any ground rent, insurance, taxes, and any other periodic charge;
(2)
The amount credited to principal and interest; and
(3)
The balance due.
Md. Code Ann., Real Prop. § 10-108 (2026)
Title 10. Sales of Property
Subtitle 1. Land Installment Contracts
§ 10–108LinkCopy Citation
If a vendor fails to comply with the provisions of § 10-105 or § 10-107 of this subtitle, the purchaser has the right to enforce these sections in a court of equity. If the court finds that the vendor has failed to comply with these provisions, the court shall grant appropriate relief and shall require the vendor to assume all court costs as well as a reasonable counsel fee for the purchaser’s attorney.
Subtitle 2. Express and Implied Warranties
Md. Code Ann., Real Prop. § 10-201 (2026)
Title 10. Sales of Property
Subtitle 2. Express and Implied Warranties
§ 10–201LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated unless otherwise apparent from context.
(b)
“Improvements” includes every newly constructed private dwelling unit, and fixture and structure which is made a part of a newly constructed private dwelling unit at the time of construction by any building contractor or subcontractor.
(c)
“Purchaser” means the original purchaser of improved realty, and the heirs and personal representatives of the original purchaser.
(d)
“Realty” includes both freehold estates and redeemable leasehold estates.
(e)
“Vendor” means any person engaged in the business of erecting or otherwise creating an improvement on realty, or to whom a completed improvement has been granted for resale in the course of his business.
Md. Code Ann., Real Prop. § 10-202 (2026)
Title 10. Sales of Property
Subtitle 2. Express and Implied Warranties
§ 10–202LinkCopy Citation
(a)
Express warranties by a vendor are created as follows:
(1)
Any written affirmation of fact or promise which relates to the improvement and is made a part of the basis of the bargain between the vendor and the purchaser creates an express warranty that the improvement conforms to the affirmation or promise.
(2)
Any written description of the improvement, including plans and specifications of it, which is made a part of the basis of the bargain between the vendor and the purchaser creates an express warranty that the improvement conforms to the description.
(3)
Any sample or model which is made a part of the basis of the bargain between the vendor and the purchaser creates an express warranty that the improvement conforms substantially to the sample or model.
(b)
To create an express warranty, it is not necessary to use formal words, such as “warranty” or “guarantee”, or that there be a specific intention to make a warranty. However, an affirmation merely of the value of the improvement or a statement purporting to be an opinion or commendation of the improvement does not create a warranty.
(c)
If an express warranty is made under subsection (a) of this section, neither words in the contract of sale, the deed, other instrument of grant, nor merger of the contract of sale into the deed or any other instrument of grant is effective to exclude or modify the warranty. At any time after the execution of the contract of sale, the warranty may be excluded or modified wholly or partially by a written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to exclusion or modification, and the terms of the new agreement with respect to it.
Md. Code Ann., Real Prop. § 10-203 (2026)
Title 10. Sales of Property
Subtitle 2. Express and Implied Warranties
§ 10–203LinkCopy Citation
(a)
Except as provided in subsection (b) of this section or unless excluded or modified pursuant to subsection (d) of this section, in every sale, warranties are implied that, at the time of the delivery of the deed to a completed improvement or at the time of completion of an improvement not completed when the deed is delivered, the improvement is:
(1)
Free from faulty materials;
(2)
Constructed according to sound engineering standards;
(3)
Constructed in a workmanlike manner; and
(4)
Fit for habitation.
(b)
The warranties of subsection (a) of this section do not apply to any condition that an inspection of the premises would reveal to a reasonably diligent purchaser at the time the contract is signed.
(c)
If the purchaser, expressly or by implication, makes known to the vendor the particular purpose for which the improvement is required, and it appears that the purchaser relies on the vendor’s skill and judgment, there is an implied warranty that the improvement is reasonably fit for the purpose.
(d)
Neither words in the contract of sale, nor the deed, nor merger of the contract of sale into the deed is effective to exclude or modify any implied warranty. However, if the contract of sale pertains to an improvement then completed, an implied warranty may be excluded or modified wholly or partially by a written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to exclusion or modification, and the terms of the new agreement with respect to it.
Md. Code Ann., Real Prop. § 10-204 (2026)
Title 10. Sales of Property
Subtitle 2. Express and Implied Warranties
§ 10–204LinkCopy Citation
(a)
If any warranty provided for in this subtitle is breached, the court may award legal or equitable relief, or both, as justice requires.
(b)
Unless an express warranty specifies a longer period of time, the warranties provided for in this subtitle expire:
(1)
In the case of a dwelling completed at the time of the delivery of the deed to the original purchaser, one year after the delivery or after the taking of possession by the original purchaser, whichever occurs first;
(2)
In the case of a dwelling not completed at the time of delivery of the deed to the original purchaser, one year after the date of the completion or taking of possession by the original purchaser, whichever occurs first; and
(3)
In the case of structural defects, two years after the date of completion, delivery, or taking possession, whichever occurs first.
(c)
The warranties provided under this section do not expire on the subsequent sale of a dwelling by the original purchaser to a subsequent purchaser, but continue to protect the subsequent purchaser until the warranties provided under subsection (b) of this section expire. The warranties provided under this section do not apply to any defect caused by the original purchaser.
(d)
Any action arising under this subtitle shall be commenced within two years after the defect was discovered or should have been discovered or within two years after the expiration of the warranty, whichever occurs first.
Md. Code Ann., Real Prop. § 10-205 (2026)
Title 10. Sales of Property
Subtitle 2. Express and Implied Warranties
§ 10–205LinkCopy Citation
If a vendor grants an improvement to an intermediate purchaser to evade any liability to a user and purchaser imposed by this subtitle, the vendor is liable on the subsequent sale of the improvement by the intermediate purchaser as if the subsequent sale had been effectuated by the vendor without regard to the intervening grant.
Subtitle 3. Deposits on New Homes
Md. Code Ann., Real Prop. § 10-301 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–301LinkCopy Citation
(a)
If, in connection with the sale and purchase of a new single–family residential unit, the construction of which has not begun or, if begun, is not completed at the time of contracting the sale, the vendor or builder obligates the purchaser to pay and the vendor or builder receives any sum of money before completion of the unit and grant of the realty to the purchaser, the builder or vendor shall:
(1)
Deposit or hold the sum in an escrow account segregated from all other funds of the vendor or builder to assure the return of the sum to the purchaser in the event the purchaser becomes entitled to a return of the sum;
(2)
Obtain and maintain a corporate surety bond in the form and in the amounts set forth in § 10–302 of this subtitle, conditioned on the return of the sum to the purchaser in the event the purchaser becomes entitled to the return of the money; or
(3)
Obtain and maintain an irrevocable letter of credit issued by a Maryland bank in the form and in the amounts set forth in § 10–303 of this subtitle.
(b)
(1)
Except as provided in paragraph (2) of this subsection, the vendor or builder shall maintain the escrow account, surety bond, or irrevocable letter of credit until the happening of the earlier of:
(i)
The granting of a deed to the property on which a completed residential unit is located to the purchaser;
(ii)
The return of the sum of money to the purchaser; or
(iii)
The forfeiture of the sum by the purchaser, under the terms of the contract of sale relating to the purchase of the residential unit.
(2)
The vendor or builder may make withdrawals from an escrow account established under subsection (a)(1) of this section that consists of sums received to finance the construction of a residential unit to pay, in accordance with a draw schedule agreed to by the purchaser in writing, documented claims of persons who have furnished labor or material for the construction of the residential unit.
(c)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Banking institution” has the meaning stated in § 1–101 of the Financial Institutions Article.
(iii)
“National banking association” has the meaning stated in § 1–101 of the Financial Institutions Article.
(2)
A banking institution or national banking association at which an escrow account established under subsection (a)(1) of this section is maintained is not responsible for a withdrawal from the escrow account made by the vendor or builder.
Md. Code Ann., Real Prop. § 10-301.1 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–301.1LinkCopy Citation
(a)
Any sum of money received by a vendor or builder in connection with the sale and purchase of a new single–family residential unit shall be held in trust for the benefit of the purchaser.
(b)
Any payments made for labor or material in connection with the construction of the residential unit shall be consistent with the trust obligation required under subsection (a) of this section.
Md. Code Ann., Real Prop. § 10-301.2 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–301.2LinkCopy Citation
(a)
A vendor or builder may deposit trust money in:
(1)
A noninterest bearing checking account;
(2)
One or more savings accounts; or
(3)
Any combination of accounts in any bank or savings and loan association authorized by federal or State law to do business in the State.
(b)
Trust money in the hands of the vendor or builder may be invested in any other investment vehicle specified by the client or beneficial owner or as they and the licensee may agree.
Md. Code Ann., Real Prop. § 10-302 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–302LinkCopy Citation
(a)
The bond shall be payable to the State for the use and benefit of every person protected by the provisions of this subtitle. The vendor or purchaser shall deposit the bond with the Consumer Protection Division of the Office of the Attorney General.
(b)
The corporate surety bond obtained pursuant to the provisions of § 10–301(a) of this subtitle shall be in a form approved by the Consumer Protection Division of the Office of the Attorney General. The bond may be either in the form of an individual bond for each deposit accepted by a vendor or builder or if the total amount of money and deposits accepted by the builder or vendor exceeds $10,000, it may be in the form of a blanket bond assuring the return of the deposits received by the vendor or builder.
(c)
If the bond is a blanket bond, the penalty of the bond shall be in accordance with the following schedule:
Total Amount of Deposits Held Penalty of Bond
(1)
$10,000 to $75,000 Full amount of
deposit held
(2)
$75,000 to $200,000 $75,000
(3)
$200,000 to $500,000 $200,000
(4)
Over $500,000 $500,000
(d)
For the purpose of determining the penalty of any blanket bond which the vendor or builder maintains in any calendar year, the total amount of deposits considered held by a vendor or builder shall be determined as of May 31 of any given calendar year and the penalty of the bond shall be in accordance with the amount of deposits held as of May 31.
Md. Code Ann., Real Prop. § 10-303 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–303LinkCopy Citation
(a)
An irrevocable letter of credit obtained under § 10–301 of this subtitle shall be:
(1)
Payable to the Office of the Attorney General for the use and benefit of every person protected by the provisions of this subtitle; and
(2)
In a form approved by the Consumer Protection Division of the Office of the Attorney General.
(b)
An irrevocable letter of credit may be either in the form of an individual letter of credit for each deposit accepted by a vendor or builder or if the total amount of money and deposits accepted by the builder exceeds $10,000, the letter of credit may be in the form of a blanket letter of credit assuring the return of the deposits received by the vendor or builder.
(c)
If the letter of credit is a blanket letter of credit, the amount of the letter of credit shall be in accordance with the following schedule:
Total Amount of Deposit Held Amount of Letter of Credit
(2)
$75,000 to $200,000 $75,000
(3)
$200,000 to $500,000 $200,000
(4)
Over $500,000 $500,000
(d)
For the purpose of determining the amount of any blanket letter of credit which the vendor or builder maintains in any calendar year, the total amount of deposits considered held by a vendor or builder shall be determined as of May 31 of any given calendar year and the amount of the letter of credit shall be in accordance with the amount of deposits held as of May 31.
Md. Code Ann., Real Prop. § 10-303.1 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–303.1LinkCopy Citation
The Consumer Protection Division of the Office of the Attorney General shall adopt regulations for the administration of the provisions of this subtitle relating to bonds and letters of credit.
Md. Code Ann., Real Prop. § 10-304 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–304LinkCopy Citation
The provisions of this subtitle do not apply to a sale by or through a licensed real estate broker in connection with which all sums of money in the nature of deposits, escrow money, or binder money are paid to a broker to be held in the escrow account of the broker.
Md. Code Ann., Real Prop. § 10-305 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–305LinkCopy Citation
(a)
If a person willfully and knowingly fails to obtain and maintain a corporate surety bond or irrevocable letter of credit or to hold sums of money in an escrow account as required under this subtitle, the person is guilty of a felony and, on conviction, shall make restitution to the purchaser as determined by the court, and be subject to a fine not exceeding $10,000 or imprisonment not exceeding 15 years or both.
(b)
In addition to any other penalty or relief afforded by law or equity, any conduct that fails to comply with this subtitle is an unfair or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article and is subject to all of the provisions of that title except § 13-411 of the Commercial Law Article.
(c)
Any officer, director, or employee of a corporation, who knowingly participates in any act or omission which is part of the violation, is subject to the penalties of this section.
Md. Code Ann., Real Prop. § 10-306 (2026)
Title 10. Sales of Property
Subtitle 3. Deposits on New Homes
§ 10–306LinkCopy Citation
(a)
The Division of Consumer Protection of the Office of the Attorney General shall develop and make available a standard new home disclosure form that advises purchasers of the purchasers’ rights under this subtitle.
(b)
Prior to the execution of any contract for the sale of a new home under this subtitle, the vendor or builder shall:
(1)
Provide the purchaser with a copy of the new home disclosure form as provided in subsection (a) of this section; and
(2)
Obtain the purchaser’s signature certifying that the purchaser has received the disclosure form.
Subtitle 4. Recorded Land Contracts
Md. Code Ann., Real Prop. § 10-401 (2026)
Title 10. Sales of Property
Subtitle 4. Recorded Land Contracts
§ 10–401LinkCopy Citation
When the buyer is not in possession of the property, no recorded contract for the sale of the property is enforceable or constitutes an encumbrance of the title, as against persons other than the original parties, unless within five years after the date set out in the recorded contract for the delivery of the deed, an action or proceeding is commenced to enforce the contract. If no date for the delivery of the deed is designated in the recorded contract, any action or proceeding shall be commenced within five years after the date when, according to the terms of the recorded contract, the final payment or installment of the purchase price was required to be paid. The existence of a disability on the part of either party to the contract at the commencement of this five-year period does not operate to extend this five-year period.
Md. Code Ann., Real Prop. § 10-402 (2026)
Title 10. Sales of Property
Subtitle 4. Recorded Land Contracts
§ 10–402LinkCopy Citation
A recorded instrument, recorded modification, or any amendment of a recorded instrument or recorded modification creating an option to purchase property, or any memorandum of option recorded under § 3-101(f) of this article ceases to be actual or constructive notice to any person or to put any person on inquiry as to existence or exercise of the option, if:
(1)
The instrument according to its terms has expired;
(2)
One year has elapsed since the time of expiration; and
(3)
No grant or other instrument has been recorded showing that the option has been exercised.
Subtitle 5. Custom Home Protection Act
Md. Code Ann., Real Prop. § 10-501 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–501LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Buyer” means any person who seeks or enters into a contract for the construction of a custom home.
(c)
“Custom home” means a single-family dwelling constructed for the buyer’s residence on land currently or previously owned by the buyer.
(d)
“Custom home builder” means any person who seeks, enters into, or performs custom home contracts.
(e)
“Custom home contract” means any contract entered into with the buyer, with a value equal to or greater than $20,000, to furnish labor and material in connection with the construction, erection, or completion of a custom home. A custom home contract does not mean an agreement for work to be done by a licensed home improvement contractor and subject to the provisions of Maryland Home Improvement Law.
(f)
“Deposit” means any sum paid to a custom home builder at the time of the execution of a custom home contract.
(g)
“Draw schedule” means a form that sets forth with particularity the sum to which the custom home builder shall be entitled as progress payment on the custom home contract after certain specified items of work have been completed on the custom home.
(h)
“Person” includes an individual, corporation, business trust, statutory trust, estate, partnership, association, 2 or more persons having a joint or common interest, or any other legal or commercial entity.
Md. Code Ann., Real Prop. § 10-502 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–502LinkCopy Citation
Any consideration received by a custom home builder in connection with a custom home contract shall be held in trust for the benefit of the buyer. Payments made to subcontractors or suppliers in connection with the custom home contract shall be consistent with the trust.
Md. Code Ann., Real Prop. § 10-503 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–503LinkCopy Citation
Except with the express written approval of the buyer not to pay, in the event a subcontractor or supplier fails, in the opinion of the custom home builder, to perform in accordance with the contract between the subcontractor or the supplier and the custom home builder, the failure of a custom home builder to pay or cause to be paid the lawful claims of any person furnishing labor or material, including fuel, within a reasonable period after the receipt from the buyer of consideration paid to satisfy the claims, shall create a rebuttable presumption that the consideration received by the custom home builder has been used or appropriated in violation of the trust established by this subtitle.
Md. Code Ann., Real Prop. § 10-504 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–504LinkCopy Citation
(a)
(1)
Except as provided under paragraph (4) of this subsection and in subsection (e) of this section, a custom home builder who receives consideration from a buyer in connection with the performance of a custom home contract shall place the consideration into an escrow account to the extent that the consideration is a payment in advance of the completion of the labor or the receipt of the materials for which the consideration is paid.
(2)
The escrow account under paragraph (1) of this subsection shall be separate and apart from the regular funds of the builder in order to assure that the advance payment in the escrow account can be returned to the buyer if the buyer becomes entitled to the return of the advance payment. However, a builder may place advance payments received in connection with more than one home into a single escrow account.
(3)
If the advance payment under paragraph (1) of this subsection is made in the form of a check or draft, a custom home builder may accept the advance payment only in the name of the escrow account.
(4)
If consideration received under the home contract in advance of the completion of the labor or the receipt of materials for which the consideration is paid does not total in excess of 5 percent of the home contract price, that consideration need not be placed in an escrow account under paragraph (1) of this subsection.
(b)
A custom home builder may make withdrawals from an escrow account established in compliance with subsection (a)(1) of this section solely for the purpose of:
(1)
Returning all or a portion of the sum of money to the buyer;
(2)
Paying documented claims of persons who have furnished labor or material, including fuel, according to the draw schedule in the custom home contract for which the funds were advanced;
(3)
Paying a sum of money to the custom home builder if the buyer forfeits the sum under the terms of the contract of sale; or
(4)
Final payment upon the issuance of an occupancy permit or possession.
(c)
In lieu of the escrow account required under subsection (a) of this section, a custom home builder may establish and maintain a separate escrow account for each custom home contract for which he receives consideration that he would be required to place into escrow under subsection (a) of this section. Each individual escrow account shall require the signature of both the buyer and the custom home builder for any withdrawal. Deposits and withdrawals to and from this account shall be governed by the requirements of subsections (a) and (b) of this section.
(d)
(1)
In lieu of the escrow accounts required under subsection (a) or (c) of this section, a custom home builder may obtain and maintain a corporate surety bond in the form and in the amounts required of a vendor or builder under § 10–302 of this title.
(2)
The surety bond obtained shall be conditioned on the return of the sum to the buyer in the event the buyer becomes entitled to the return of the money.
(3)
The custom home builder shall maintain the surety bond until the custom home builder complies with § 9–114 of this article.
(e)
This section does not apply to:
(1)
A custom home contract financed by a mortgage loan issued by a federally chartered financial institution or a financial institution regulated under the Financial Institutions Article; and
(2)
A sale by or through a licensed real estate broker in connection with which all sums of money in the nature of deposits, escrow money, or binder money are paid to a broker to be held in the escrow account of the broker.
Md. Code Ann., Real Prop. § 10-505 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–505LinkCopy Citation
Every custom home contract between a custom home builder and the buyer must be in writing. The custom home contract shall:
(1)
Include a draw schedule that shall be set forth on a separate sheet of paper and that shall be separately signed by the buyer and the custom home builder;
(2)
Identify to the extent known the names of the primary subcontractors who will be working on the custom home;
(3)
Expressly state that any and all changes that are to be made to the contract shall be recorded as “change orders” that specify the change in the work ordered and the effect of the change on the price of the house;
(4)
Set forth in bold type whether or not the vendor or builder is covered by a warranty program guaranteed by a third party;
(5)
Require the vendor or builder to deliver to the purchaser within 30 days after each progress payment a list of the subcontractors, suppliers, or materialmen who have provided more than $500 of goods or services to date and indicate which of them have been paid by the vendor or builder; and
(6)
Require that the custom home builder provide waivers of liens from all applicable subcontractors, suppliers, or materialmen within a reasonable time after the final payment for the goods or services they provide.
Md. Code Ann., Real Prop. § 10-506 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–506LinkCopy Citation
(a)
(1)
A custom home builder must include in each custom home contract a disclosure concerning the buyer’s risk under mechanics’ lien laws.
(2)
The disclosure concerning the buyer’s risk under mechanics’ lien laws under paragraph (3) of this subsection shall:
(i)
Be on a separate page of the custom home contract; and
(ii)
Be separately signed by the buyer.
(3)
The disclosure required under paragraph (1) of this subsection shall state:
“BUYER’S RISK UNDER MECHANICS’ LIEN LAWS
Unless your builder pays each subcontractor, materialman, or supplier, the subcontractor, materialman, or supplier may become entitled to place a lien against your property in order to ensure payment to the subcontractor, materialman, or supplier for services rendered or goods delivered on or to your home. This could mean that your home could be sold to satisfy the lien. Your builder is required by law to give you periodic reports that list the subcontractors, suppliers, and materialmen who have provided more than $500 of goods or services to your custom home, and indicate whether they have been paid. If at any time you have any questions or concerns about whether a subcontractor has been properly paid you should discuss them with your builder, your subcontractor, and your financing institution.”
(b)
(1)
A custom home builder shall include in each custom home contract a certification by the builder.
(2)
The certification by the builder under paragraph (3) of this subsection shall be:
(i)
On a separate page of the custom home contract; and
(ii)
Separately signed by the buyer.
(3)
Except as provided under paragraph (4) of this subsection, the certification required under paragraph (1) of this subsection shall state:
“CERTIFICATION BY BUILDER
I (name of builder) hereby certify that to the best of my knowledge, both I and any business entity in which I had an ownership interest in excess of 51 percent have not:
(1)
Within the past 3 years been adjudged by a court of competent jurisdiction in Maryland to have failed to comply with any provision of the Custom Home Protection Act or the Consumer Protection Act as it applies to the construction of new homes; or
(2)
Been adjudged liable for a final judgment in connection with a custom home contract, which judgment currently remains unsatisfied.”
(4)
If a custom home builder is unable to execute the certification under paragraph (3) of this subsection truthfully, then another certification shall be substituted, which shall state:
“CERTIFICATION BY BUILDER
I (name of builder) hereby certify that, to the best of my knowledge, the information provided below includes all instances in which I or any business entity in which I had an ownership interest in excess of 51 percent have:
(1)
Within the past 3 years been adjudged by a court of competent jurisdiction in Maryland to have failed to comply with any provision of the Custom Home Protection Act or the Consumer Protection Act as it applies to the construction of a new home; and
(2)
Been adjudged liable for a currently unsatisfied final judgment in connection with a custom home contract.
Adverse adjudication(s):
( ).
Unsatisfied judgment(s):
( ).”
(c)
(1)
A custom home builder shall include in each custom home contract an escrow account requirement notice under paragraph (3) of this subsection.
(2)
The escrow account requirement notice under paragraph (3) of this subsection shall:
(i)
Be on a separate page of the custom home contract; and
(ii)
Be separately signed by the buyer.
(3)
The escrow account requirement notice required under paragraph (1) of this subsection shall state:
“ESCROW ACCOUNT REQUIREMENT
Unless your contract is financed by a mortgage issued by a federally chartered financial institution or a financial institution supervised under the Financial Institutions Article of the Annotated Code of Maryland, or unless all deposits, escrow money, binder money, or any other money paid in advance, or is paid to the licensed real estate broker, to be held in the escrow account of the broker, Maryland law requires that all consideration exceeding 5 percent of the total contract price which is paid by a buyer to a custom home builder in advance of the completion of the custom home shall be deposited in an escrow account and paid out of that account only for certain purposes specified by law. To ensure this, the law requires that your builder may only accept such payment in the name of the escrow account. Thus, you should make out your check to “(name of builder), escrow account”. Records of payments out of this account must be carefully maintained by your builder, and the builder must permit you reasonable access to escrow account records. Your builder, however, may choose to establish a separate escrow account for your project which will require your signature for any withdrawals.”
Md. Code Ann., Real Prop. § 10-507 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–507LinkCopy Citation
(a)
In addition to any other penalty provided elsewhere in the Annotated Code, any conduct that fails to comply with this subtitle, or any breach of any trust created by this subtitle, is:
(1)
An unfair or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article; and
(2)
Subject to all of the provisions of that title except § 13–411 of the Commercial Law Article.
(b)
(1)
A person is guilty of a felony, if the person willfully and knowingly:
(i)
Fails to obtain and maintain a corporate surety bond or to hold sums of money in an escrow account as required under this subtitle;
(ii)
Fails to make a disclosure required under § 10-506(b)(4) of this subtitle; or
(iii)
Commits a breach of the trust provided in § 10-502 of this subtitle.
(2)
A person convicted under paragraph (1) of this subsection shall make restitution to the purchaser as determined by the court and be subject to a fine not exceeding $10,000 or imprisonment not exceeding 15 years or both.
(3)
Other than the conduct described in paragraph (1) of this subsection, any conduct that fails to comply with this subtitle, or any breach of any trust created by this subtitle, is a misdemeanor, and on conviction, any violator is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year, or both.
(c)
(1)
Subject to the limitations under paragraph (2) of this subsection, a court may order, in addition to any other penalty provided elsewhere in the Annotated Code, that an individual violating this subtitle may not be permitted to seek, enter into, or perform any contract for the construction of real property in the State for a period of time to be specified by the court.
(2)
A court may make an order under paragraph (1) of this subsection only if the court determines:
(i)
That a criminal offense that resulted in financial losses to the victims has been committed by a violation of this subtitle or by a breach of any trust created by this subtitle; and
(ii)
That it would not be inconsistent with a plan for restitution ordered in any other proceeding brought to enforce this subtitle.
Md. Code Ann., Real Prop. § 10-509 (2026)
Title 10. Sales of Property
Subtitle 5. Custom Home Protection Act
§ 10–509LinkCopy Citation
This subtitle may be cited as the Maryland Custom Home Protection Act.
Subtitle 6. New Home Warranties
Md. Code Ann., Real Prop. § 10-601 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–601LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Appliances, fixtures, and items of equipment” means furnaces, boilers, oil tanks and fittings, air purifiers, air handling equipment, ventilating fans, air conditioning equipment, water heaters, pumps, stoves, refrigerators, garbage disposals, compactors, dishwashers, automatic door openers, washers and dryers, bathtubs, sinks, toilets, faucets and fittings, lighting fixtures, circuit breakers, and other similar items.
(c)
“Builder” means any person, corporation, partnership or other legal entity:
(1)
That is engaged in the business of erecting or otherwise constructing a new home; or
(2)
That purchases a completed new home for resale in the course of its business.
(d)
“Division” means the Consumer Protection Division of the Office of the Attorney General.
(e)
“Electrical systems” means all wiring, electrical boxes, switches, outlets and connections up to the public utility connection.
(f)
“Heating, cooling, and ventilating systems” means all duct work, steam, water and refrigerant lines, registers, convectors, radiation elements and dampers.
(g)
“Load–bearing portions of the home” means the load–bearing portions of the:
(1)
Foundation system and footings;
(2)
Beams;
(3)
Girders;
(4)
Lintels;
(5)
Columns;
(6)
Walls and partitions;
(7)
Floor systems; and
(8)
Roof framing system.
(h)
“Local jurisdiction” means any county and any municipal corporation in Maryland subject to the provisions of Article XI–E of the Constitution.
(i)
(1)
“New home” means every newly constructed private 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.
(2)
“New home” does not include:
(i)
Outbuildings, including detached garages and detached carports, except outbuildings that contain plumbing, electrical, heating, cooling, or ventilation systems serving the new home;
(ii)
Driveways;
(iii)
Walkways;
(iv)
Patios and decks;
(v)
Boundary walls;
(vi)
Retaining walls not necessary for the structural stability of the new home;
(vii)
Landscaping;
(viii)
Fences;
(ix)
Off–site improvements;
(x)
Appurtenant recreational facilities; and
(xi)
Other similar items as determined by the Secretary of Labor.
(j)
“New home warranty” means a series of written promises made by a builder that meets the requirements of this subtitle.
(k)
“New home warranty security plan” means a plan that meets the requirements of § 10–606 of this subtitle.
(l)
“Owner” means the purchaser of a new home who uses the home primarily for residential purposes during the warranty period.
(m)
“Plumbing systems” means:
(1)
Gas supply lines and fittings;
(2)
Water supply, waste, and vent pipes and their fittings;
(3)
Septic tanks and their drain fields; and
(4)
(i)
Water, gas, and sewer service piping and their extensions to the tie–in of a public utility connection; or
(ii)
On–site wells and sewage disposal systems.
(n)
(1)
“Structural defect” means any defect in the load–bearing portions of a new home that adversely affects its load–bearing function to the extent that the home becomes or is in serious danger of becoming unsafe, unsanitary, or otherwise uninhabitable.
(2)
“Structural defect” includes damage due to subsidence, expansion, or lateral movement of soil that has been located or relocated by the builder.
(3)
“Structural defect” does not include damage caused by movement of the soil:
(i)
Resulting from a flood or earthquake; or
(ii)
For which compensation has been provided.
(o)
“Warranty date” means the first day that the owner occupies the new home, settles on the new home, makes the final contract payment on the new home, or obtains an occupancy permit for the new home if the home is built on the owner’s property, whichever is earlier.
Md. Code Ann., Real Prop. § 10-602 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–602LinkCopy Citation
(a)
Prior to entering into a contract for sale or construction of a new home, the builder shall disclose in writing to the owner whether:
(1)
The builder participates in a new home warranty security plan through which:
(i)
The builder must provide the owner with a new home warranty; or
(ii)
The builder may provide a new home warranty to the owner at the owner’s option; or
(2)
The builder does not participate in a new home warranty security plan.
(b)
The disclosure will be made on a form approved by the Division.
Md. Code Ann., Real Prop. § 10-603 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–603LinkCopy Citation
(a)
If the builder does not participate in a new home warranty security plan:
(1)
The builder must make a disclosure at the time of the purchase or construction contract containing an explanation in 12 point type that:
(i)
The owner should be aware that builders of new homes in the State of Maryland are required to be registered with the Consumer Protection Division of the Office of the Attorney General;
(ii)
Without a new home warranty or other express warranties, the owner may be afforded only certain limited implied warranties as are provided by law; and
(iii)
(1)
Describes any hazardous or regulated materials, including asbestos, lead–based paint, radon, methane, underground storage tanks, licensed landfills, unlicensed landfills, licensed rubble fills, unlicensed rubble fills, or other environmental hazards, present on the site of the new home of which the builder has actual knowledge; or
(2)
States that the builder is making no representations or warranties as to whether there is any hazardous or regulated material on the site of the new home;
(2)
The owner shall acknowledge in writing that the owner understands that the builder does not participate in a new home warranty security plan and that the owner has read and understood the disclosure pursuant to item (1) of this subsection; and
(3)
Any purchase or construction contract entered into which does not contain the acknowledgment required by item (2) of this subsection is voidable by the owner.
(b)
(1)
An owner who has made the acknowledgment described in subsection (a)(2) of this section may rescind the contract within 5 working days from the date of the contract by providing the builder with written notice of the owner’s rescission of the contract; and
(2)
Upon rescission, the owner shall be entitled to a refund of any money paid to the builder for the new home.
Md. Code Ann., Real Prop. § 10-604 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–604LinkCopy Citation
(a)
(1)
Except for coverage excluded under paragraph (2) of this subsection, a new home warranty provided under a new home warranty security plan shall warrant at a minimum that:
(i)
For 1 year, beginning on the warranty date, the new home is free from any defects in materials and workmanship;
(ii)
For 2 years, beginning on the warranty date, the new home is free from any defect in the electrical, plumbing, heating, cooling, and ventilating systems, except that in the case of appliances, fixtures and items of equipment, the warranty may not exceed the length and scope of the warranty offered by the manufacturer; and
(iii)
For 5 years, beginning on the warranty date, the new home is free from any structural defect.
(2)
A new home warranty provided under a new home warranty security plan may exclude the following:
(i)
Damage to real property that is not part of the home covered by the warranty or that is not included in the purchase price of the home;
(ii)
Bodily injury or damage to personal property;
(iii)
Any defect in materials supplied or work performed by anyone other than the builder or the builder’s employees, agents, or subcontractors;
(iv)
Any damage that the owner has not taken timely action to minimize or for which the owner has failed to provide timely notice to the builder;
(v)
Normal wear and tear or normal deterioration;
(vi)
Insect damage, except where the builder has failed to use proper materials or construction methods designed to prevent insect infestation;
(vii)
Any loss or damage that arises while the home is being used primarily for nonresidential purposes;
(viii)
Any damage to the extent it is caused or made worse by negligence, improper maintenance or improper operations by anyone other than the builder or its employees, agents, or subcontractors;
(ix)
Any damage to the extent it is caused or made worse by changes of the grading of the ground by anyone other than the builder, its employees, agents, or subcontractors; and
(x)
Any loss or damage caused by acts of God.
(b)
A builder who has disclosed that the builder participates in a new home warranty security plan shall:
(1)
Furnish to the owner at the time of the purchase or construction contract:
(i)
The name and phone number of the builder’s new home warranty security plan;
(ii)
Details of the warranty coverage provided under the plan; and
(iii)
In a form to be determined by the Division, evidence that:
(1)
The builder currently is a participant in good standing with a plan that satisfies the requirements of § 10-606(a) of this subtitle; and
(2)
The new home is eligible for registration or has been registered in the builder’s new home warranty security plan;
(2)
Disclose to the owner at the time of the purchase or construction contract:
(i)
Any actual knowledge that the builder has of any hazardous or regulated materials, including asbestos, lead-based paint, radon, methane, underground storage tanks, licensed landfills, unlicensed landfills, licensed rubble fills, unlicensed rubble fills, or other environmental hazards, present on the site of the new home; or
(ii)
That the builder is making no representations or warranties as to whether there is any hazardous or regulated material on the site of the new home; and
(3)
Either:
(i)
Provide the new home with a new home warranty if the builder belongs to a new home warranty security plan that:
(1)
Requires the builder to register every new home that the builder builds; or
(2)
Does not require the builder to register every new home but the builder has decided to sell the new home with a new home warranty; or
(ii)
If the builder belongs to a new home warranty security plan that does not require the builder to register every new home and the builder has not decided whether or not to sell the new home with a new home warranty, give the owner the option of:
(1)
Purchasing the new home with the new home warranty provided by the builder’s new home warranty security plan; or
(2)
Waiving the right to warranty coverage by making the affirmative waiver described in § 10-607 of this subtitle.
(c)
(1)
If the purchase or construction contract provides that the new home shall be covered by a new home warranty under a new home warranty security plan it shall constitute a material breach of the contract if either:
(i)
The builder was not a participant in good standing on the date of the contract with a new home warranty security plan that satisfies the requirements of § 10-606(a) of this subtitle; or
(ii)
The new home has not been registered in the plan on or before the warranty date.
(2)
If there has been a material breach of the contract, the owner shall be entitled to whatever remedies are provided by law including, but not limited to:
(i)
Rescission of the contract; and
(ii)
Except in the case of a construction contract for a new home built on the owner’s property, a refund of any money paid to the builder for the new home.
(d)
(1)
The builder shall notify the new home warranty security plan of each new home being constructed by the builder on the earlier of the date of the purchase or construction contract or the start of construction of the new home.
(2)
Upon receipt of notification by the builder as required in paragraph (1) of this subsection, the new home shall be eligible for registration in the builder’s new home warranty security plan.
(e)
(1)
Upon registration of the new home in the new home warranty security plan, warranty coverage which has not been waived by the owner shall be provided beginning on the warranty date for the new home constructed by the builder, provided that the builder was in good standing with the new home warranty security plan at the time of the contract.
(2)
On the warranty date, the builder shall provide the owner with evidence, in a form approved by the Division that the new home is covered by a new home warranty that meets the requirements of this subtitle.
(3)
Within 60 days from the warranty date, the builder’s new home warranty security plan shall provide the owner with validated new home warranty documents.
(f)
A new home warranty shall benefit any successor in title to the owner who occupies the home for residential purposes during the warranty period.
Md. Code Ann., Real Prop. § 10-605 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–605LinkCopy Citation
A builder who sells a new home with a new home warranty pursuant to § 10–604(b) of this subtitle which has not been waived by the owner shall provide the owner with a notice that shall be incorporated in a conspicuous manner in the contract and that shall include the following language in type at least as large as 12 point type:
“Notice to Purchaser
Your new home will be covered by a new home warranty that meets the minimum requirements established under Title 10, Subtitle 6 of the Real Property Article of the Annotated Code of Maryland. Before you sign this contract, your builder is required to give you a copy of the warranty coverage you will receive.
The name of the new home warranty security plan in which your builder is currently a participant is ........ You are strongly encouraged to call the new home warranty security plan at ....... to verify (i) that your builder is in good standing with this company, and (ii) that your new home will be covered by a warranty from this company.
If the builder is not a participant in good standing with this company on the date of this contract, or if the new home has not been registered in the plan on or before the warranty date, then it is a material breach of the contract and you are entitled to whatever remedies are provided by law, including, but not limited to, rescission or cancellation of this contract and, except in the case of a construction contract for a new home built on your own property, a refund of any money paid to the builder for your new home.
On the day that you first occupy the new home, settle on the new home, make the final payment to the builder on your new home, or obtain an occupancy permit for a new home if the new home is built on your own property, whichever is earlier, you will be provided with evidence that a new home warranty exists for your new home and that coverage begins on that date. You will be provided with a signed new home warranty within 60 days from the date the coverage begins.
The terms used in this notice shall have the same meanings as provided in Title 10, Subtitle 6 of the Real Property Article of the Annotated Code of Maryland.”
Md. Code Ann., Real Prop. § 10-606 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–606LinkCopy Citation
(a)
A new home warranty security plan shall:
(1)
Provide for the payment of claims against a builder for defects warranted under this subtitle;
(2)
Be operated by a corporation, partnership, or other legal entity authorized to do business in Maryland;
(3)
Demonstrate to the Division that the plan will maintain financial security to cover the total number of claims that the plan reasonably anticipates will be filed against participating builders;
(4)
File with the Division a surety bond or an irrevocable letter of credit from a federally insured financial institution in an amount set by the Division, but not less than $100,000, for the benefit of owners injured by the failure of the new home warranty security plan to pay claims as required under this subtitle;
(5)
Provide within the new home warranty documents the performance standards that describe the builder’s obligations for defects warranted under this subtitle;
(6)
Provide for the mediation of disputes between an owner and a builder before a claim will be paid by the builder’s new home warranty security plan; and
(7)
Meet any other requirements determined by the Division and be approved by the Division.
(b)
(1)
The Division may revoke or suspend approval for a new home warranty security plan if the Division determines that the plan:
(i)
Is unable to meet its obligations under a new home warranty; or
(ii)
Is administered in a manner that denies owners the warranty coverage required under this subtitle.
(2)
Except for new homes that were registered in the new home warranty security plan prior to the revocation or suspension and for which a purchase or construction contract has been executed, during the time period that approval for a new home warranty security plan is revoked or suspended by the Division, the new home warranty security plan may not provide warranty coverage for any new homes built in Maryland.
(c)
(1)
Unless the Division determines that a shorter notice period is needed to protect the interests of the builders and owners, the Division shall give a new home warranty security plan at least 90 days’ notice that the Division’s approval of the plan is being revoked or suspended.
(2)
A new home warranty security plan shall give to its participating builders at least 60 days’ notice of the plan’s revocation or suspension, or such shorter time as specified by the Division if the plan receives less than 90 days’ notice.
Md. Code Ann., Real Prop. § 10-607 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–607LinkCopy Citation
(a)
If in accordance with § 10–604(b)(3) of this subtitle an owner does not wish to require that the new home be covered by a new home warranty, the owner shall make an affirmative waiver of the coverage at the time of the purchase or construction contract.
(b)
Before an owner makes a waiver under this section, the owner must be informed in writing by the builder of the cost, nature, and extent of warranty coverage that would be provided under the builder’s new home warranty security plan if not waived by the owner.
(c)
An owner who has made an affirmative waiver under this section may rescind the waiver and request a new home warranty in accordance with the provisions of this subtitle within 3 working days from the date of the contract by providing the builder with written notice of the owner’s rescission of the waiver.
(d)
The waiver under this section shall be made on a form determined by the Division and shall contain a section in which an owner who has made a waiver may rescind the waiver pursuant to subsection (c) of this section.
(e)
The form shall clearly and concisely explain in 12 point boldface type on a separate piece of paper:
(1)
The cost, nature, and extent of warranty coverage that would be provided under the builder’s new home warranty security plan if not waived by the owner;
(2)
That the failure of the owner to make a waiver requires the builder to provide a new home warranty;
(3)
That a builder may not refuse to build a new home for the owner because the owner refuses to waive warranty coverage;
(4)
That the owner should be aware that builders of new homes in the State of Maryland are required to be registered with the Consumer Protection Division of the Office of the Attorney General;
(5)
Without a new home warranty or other express warranties, the owner may be afforded only certain limited implied warranties as are provided by law; and
(6)
That an owner who has made an affirmative waiver of the warranty coverage still may rescind the waiver and request a new home warranty in accordance with the provisions of this subtitle, within 3 working days from the date of the contract by providing the builder with written notice of the owner’s rescission of the waiver.
Md. Code Ann., Real Prop. § 10-608 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–608LinkCopy Citation
(a)
Any warranties provided in accordance with the requirements of this subtitle are in addition to all other implied or express warranties provided by law or agreement.
(b)
In addition to any other penalty imposed by law, the failure to comply with the provisions of this subtitle or the knowing misrepresentation that a new home warranty exists is an unfair or deceptive trade practice, as defined in § 13–301 of the Commercial Law Article.
Md. Code Ann., Real Prop. § 10-609 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–609LinkCopy Citation
Any person that knowingly violates the provisions of this subtitle or knowingly misrepresents the existence of a new home warranty shall be subject to a fine not exceeding $50,000 or imprisonment for not more than 2 years or both in addition to any other penalties provided for in this subtitle.
Md. Code Ann., Real Prop. § 10-610 (2026)
Title 10. Sales of Property
Subtitle 6. New Home Warranties
§ 10–610LinkCopy Citation
This subtitle does not apply to new homes built, new home warranties offered, or new home warranty security plans operating in Montgomery County, except that it shall apply:
(1)
To any municipality in Montgomery County that has exempted itself from the application of Chapter 31C, New Home Warranty and Builder Licensing, of the Montgomery County Code; or
(2)
If Chapter 31C, New Home Warranty and Builder Licensing, of the Montgomery County Code is no longer in effect or is amended in such a manner that it becomes less stringent than the requirements of this subtitle.
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
Md. Code Ann., Real Prop. § 10-701 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–701LinkCopy Citation
In Prince George’s County, a contract of sale of real property creating a subdivision for which a plat of subdivision has not been recorded, shall contain the following notice:
“The subdivision of land to be created by this transaction has not been approved by the Maryland–National Capital Park and Planning Commission, the Maryland Department of Health, or any other agency of the State or county. The approval of one or more of these agencies may be necessary before any building permit is issued.”
Md. Code Ann., Real Prop. § 10-702 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–702LinkCopy Citation
(a)
In this section, “latent defects” means material defects in real property or an improvement to real property that:
(1)
A purchaser would not reasonably be expected to ascertain or observe by a careful visual inspection of the real property; and
(2)
Would pose a direct threat to the health or safety of:
(i)
The purchaser; or
(ii)
An occupant of the real property, including a tenant or invitee of the purchaser.
(b)
(1)
This section applies only to single family residential real property improved by four or fewer single family units.
(2)
This section does not apply to:
(i)
The initial sale of single family residential real property:
(1)
That has never been occupied; or
(2)
For which a certificate of occupancy has been issued within 1 year before the vendor and purchaser enter into a contract of sale;
(ii)
A transfer that is exempt from the transfer tax under § 13-207 of the Tax - Property Article, except land installment contracts of sale under § 13-207(a)(11) of the Tax - Property Article and options to purchase real property under § 13-207(a)(12) of the Tax - Property Article;
(iii)
A sale by a lender or an affiliate or subsidiary of a lender that acquired the real property by foreclosure or deed in lieu of foreclosure;
(iv)
A sheriff's sale, tax sale, or sale by foreclosure, partition, or by court appointed trustee;
(v)
A transfer by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(vi)
A transfer of single family residential real property to be converted by the buyer into a use other than residential use or to be demolished; or
(vii)
A sale of unimproved real property.
(c)
(1)
A vendor of single family residential real property shall complete and deliver to each purchaser:
(i)
A written residential property condition disclosure statement on a form provided by the State Real Estate Commission; or
(ii)
A written residential property disclaimer statement on a form provided by the State Real Estate Commission.
(2)
The State Real Estate Commission shall develop by regulation a single standardized form that includes the residential property condition disclosure and disclaimer statements required by this subsection.
(d)
The residential property disclaimer statement shall:
(1)
Disclose any latent defects of which the vendor has actual knowledge that a purchaser would not reasonably be expected to ascertain by a careful visual inspection and that would pose a direct threat to the health or safety of the purchaser or an occupant; and
(2)
State that:
(i)
Except for latent defects disclosed under item (1) of this subsection, the vendor makes no representations or warranties as to the condition of the real property or any improvements on the real property; and
(ii)
The purchaser will be receiving the real property “as is”, with all defects, including latent defects, that may exist, except as otherwise provided in the contract of sale of the real property.
(e)
(1)
The residential property disclosure statement shall disclose those items that, to carry out the provisions of this section, the State Real Estate Commission requires to be disclosed about the physical condition of the property.
(2)
The disclosure form shall include a list of defects, including latent defects, or information of which the vendor has actual knowledge in relation to the following:
(i)
Water and sewer systems, including the source of household water, water treatment systems, and sprinkler systems;
(ii)
Insulation;
(iii)
Structural systems, including the roof, walls, floors, foundation, and any basement;
(iv)
Plumbing, electrical, heating, and air conditioning systems;
(v)
Infestation of wood–destroying insects;
(vi)
Land use matters;
(vii)
Hazardous or regulated materials, including asbestos, lead–based paint, radon, underground storage tanks, and licensed landfills;
(viii)
Any other material defects of which the vendor has actual knowledge;
(ix)
Whether the smoke alarms:
(1)
Will provide an alarm in the event of a power outage;
(2)
Are over 10 years old; and
(3)
If battery operated, are sealed, tamper resistant units incorporating a silence/hush button and use long–life batteries as required in all Maryland homes by 2018; and
(x)
If the property relies on the combustion of a fossil fuel for heat, ventilation, hot water, or clothes dryer operation, whether a carbon monoxide alarm is installed on the property.
(3)
The disclosure form shall contain:
(i)
A notice to prospective purchasers and vendors that the prospective purchaser or vendor may wish to obtain professional advice about or an inspection of the property;
(ii)
A notice to prospective purchasers that disclosure by the seller is not a substitute for an inspection by an independent home inspection company, and that the purchaser may wish to obtain such an inspection;
(iii)
A notice to purchasers that the information contained in the disclosure statement is the representation of the vendor and is not the representation of the real estate broker or salesperson, if any; and
(iv)
A notice to purchasers that the information contained in the disclosure statement is not a warranty by the vendor as to:
(1)
The condition of the property of which the vendor has no actual knowledge; or
(2)
Other conditions of which the vendor has no actual knowledge.
(4)
The vendor is not required to undertake or provide an independent investigation or inspection of the property in order to make the disclosures required by this section.
(f)
(1)
Except as provided in paragraphs (2) and (3) of this subsection, the vendor shall deliver the completed disclosure or disclaimer statement required by this section to the purchaser on or before entering into a contract of sale by the vendor and the purchaser.
(2)
The disclosure or disclaimer statement shall be delivered to each purchaser before the execution of the contract of sale by the purchaser in the case of a land installment contract, as defined in § 10-101 of this title.
(3)
The disclosure or disclaimer statement shall be delivered to each purchaser before the execution by the purchaser of an option to purchase agreement or a lease agreement containing an option to purchase provision.
(4)
At the time the disclosure or disclaimer statement is delivered, each purchaser shall date and sign a written acknowledgment of receipt, which shall be included in or attached to the contract of sale.
(g)
A purchaser who receives the disclosure or disclaimer statement on or before entering into the contract of sale does not have the right to rescind the contract of sale based upon the information contained in the statement.
(h)
(1)
A purchaser who does not receive the disclosure or disclaimer statement on or before entering into the contract of sale has the unconditional right, upon written notice to the vendor or vendor’s agent:
(i)
To rescind the contract of sale at any time before the receipt of the disclosure or disclaimer statement or within 5 days following receipt of the disclosure or disclaimer statement; and
(ii)
To the immediate return of any deposits made on account of the contract.
(2)
A purchaser’s right to rescind the contract of sale under this subsection terminates if not exercised:
(i)
Before making a written application to a lender for a mortgage loan, if the lender discloses in writing at or before the time application is made that the right to rescind terminates on submission of the application; or
(ii)
Within 5 days following receipt of a written disclosure from a lender who has received the purchaser’s application for a mortgage loan, if the lender’s disclosure states that the purchaser’s right to rescind terminates at the end of that 5–day period.
(3)
The return of any deposits held in trust by a licensed real estate broker to a purchaser under this subsection shall comply with the procedures set forth in § 17–505 of the Business Occupations and Professions Article.
(i)
(1)
A disclosure statement made under this section does not constitute a warranty by the vendor as to:
(i)
The condition of the property of which the vendor has no actual knowledge; or
(ii)
Other conditions of which the vendor has no actual knowledge.
(2)
A vendor is not liable for an error, inaccuracy, or omission in a disclosure statement made under this section if the error, inaccuracy, or omission was based upon information that was:
(i)
Not within the actual knowledge of the vendor;
(ii)
Provided to the vendor by a unit or instrumentality of the State government or of a political subdivision; or
(iii)
Provided to the vendor by a report or opinion prepared by a licensed engineer, land surveyor, geologist, wood-destroying insect control expert, contractor, or other home inspection expert, dealing with matters within the scope of the professional's license or expertise.
(j)
(1)
A report or opinion prepared by an expert shall satisfy the requirement of subsection (i)(2)(iii) of this section if the information is provided to the vendor pursuant to a written or oral request for the information.
(2)
In responding to a request for information, the reporting party:
(i)
May indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of this section; and
(ii)
If so indicating, shall indicate the required disclosures, or parts of required disclosures, to which the information being provided is applicable.
(3)
If the reporting party provides the statement under paragraph (2)(ii) of this subsection, the reporting party is not responsible for any items of information, or parts of items, other than those expressly set forth in the statement.
(k)
(1)
The rights of a purchaser under this section may not be waived in the contract of sale and any attempted waiver is void.
(2)
Any rights of the purchaser to terminate the contract provided by this section are waived conclusively if not exercised before:
(i)
Closing or occupancy by the purchaser, whichever occurs first, in the event of a sale; or
(ii)
Occupancy, in the event of a lease with option to purchase.
(l)
Each contract of sale shall include a conspicuous notice advising the purchaser of the purchaser's rights as set forth in this section.
(m)
(1)
The real estate licensee representing a vendor of residential real property as the listing broker has a duty to inform the vendor of the vendor's rights and obligations under this section.
(2)
The real estate licensee representing a purchaser of residential real property, or, if the purchaser is not represented by a licensee, the real estate licensee representing an owner of residential real estate and dealing with the purchaser, has a duty to inform the purchaser of the purchaser's rights and obligations under this section.
(3)
If a real estate licensee performs the duties specified in this subsection, the licensee:
(i)
Shall have no further duties under this section to the parties to a residential real estate transaction; and
(ii)
Is not liable to any party to a residential real estate transaction for a violation of this section.
Md. Code Ann., Real Prop. § 10-703 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–703LinkCopy Citation
(a)
This section applies only to single family residential real property in Anne Arundel County improved by four or fewer single family units.
(b)
All contracts of sale for residential real property shall contain the following notice:
“The buyer fully understands that in order to become more fully informed of the current and future land–use plans, facility plans, public works plans, school plans, or other plans affecting the property or area, the buyer should consult the appropriate county agency or county Internet website for information regarding these plans.”
(c)
All local laws requiring disclosure to home buyers of information substantially similar to subsection (b) of this section prevail over the requirements of this section.
Md. Code Ann., Real Prop. § 10-704 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–704LinkCopy Citation
(a)
In Frederick County, the vendor of a property that is subject to a tax or fee of a special taxing district as authorized in § 21–409 of the Local Government Article or by a community development authority as authorized in § 2–7–125(b) of the Public Local Laws of Frederick County may not enforce a contract for the sale of the property unless within 20 calendar days after entering into the contract, the purchaser of the property is provided the following information in writing:
(1)
In conspicuous, bold, and underscored type, substantially the same as the following clause:
“This sale is subject to a tax or fee of a (special taxing district or community development authority). State law requires that the seller disclose to you at or before the time the contract is entered into, or within 20 calendar days after entering into the contract, certain information concerning the property you are purchasing. The content of the information to be disclosed is set forth in § 10–704 of the Real Property Article of the Maryland Annotated Code and includes the amount of the current annual tax or fee of the (special taxing district or community development authority) for the property, the number of years remaining for the tax or fee of the (special taxing district or community development authority), and a statement of whether any tax or fee of the (special taxing district or community development authority) against the property is delinquent.”;
(2)
The amount of the current annual tax or fee of the special taxing district or community development authority for the property;
(3)
The number of years remaining for the tax or fee of the special taxing district or community development authority on the property; and
(4)
Whether any tax or fee of the special taxing district or community development authority against the property is delinquent.
(b)
The requirements of subsection (a) of this section shall be deemed fulfilled if the information required to be provided to the purchaser is done so in writing, in a clear and concise manner.
(c)
The statement required under subsection (a)(1) of this section may be provided to the purchaser by the inclusion of the statement as a clause in the contract for sale of the property.
Md. Code Ann., Real Prop. § 10-705 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–705LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Conservation easement” means an easement, covenant, restriction, or condition on real property, including an amendment to an easement, covenant, restriction, or condition, as provided for in § 2–118 of this article that is:
(i)
Owned by:
(1)
The Maryland Environmental Trust;
(2)
The Maryland Historical Trust;
(3)
The Maryland Agricultural Land Preservation Foundation;
(4)
The Maryland Department of Natural Resources;
(5)
A county or municipal corporation and is funded by the Maryland Department of Natural Resources, the Rural Legacy Program, or a local agricultural preservation program; or
(6)
A land trust; or
(ii)
Required by a permit issued by the Department of the Environment.
(3)
“Land trust” means an organization that:
(i)
Is a qualified organization under § 170(h)(3) of the Internal Revenue Code and regulations adopted under that section; and
(ii)
Has executed a cooperative agreement with the Maryland Environmental Trust.
(b)
(1)
This section applies to the sale of property encumbered by a conservation easement.
(2)
This section does not apply to the sale of property in an action to foreclose a mortgage or deed of trust.
(c)
A vendor of real property encumbered by one or more conservation easements shall, on or before entering into a contract for the sale of the property, deliver to each purchaser:
(1)
The notice described in subsection (d) of this section; and
(2)
A copy of all conservation easements encumbering the property.
(d)
The notice required under subsection (c)(1) of this section shall be in a form substantially the same as the following:
“This property is encumbered by one or more conservation easements or other restrictions limiting or affecting uses of the property. Maryland law requires that the vendor deliver to the purchaser copies of all conservation easements on or before the day the contract is entered into. The purchaser should review all conservation easements carefully to ascertain the purchaser’s rights, responsibilities, and obligations under each conservation easement, including any requirement that after the sale the purchaser must inform the owner of the conservation easement of the sale of the property.”.
(e)
(1)
A purchaser who receives the notice and copies of the easements required under subsection (c) of this section on or before entering into a contract of sale does not have the right to rescind the contract of sale based on the information received from the vendor.
(2)
A purchaser who does not receive the notice and copies of the easements required under subsection (c) of this section on or before entering into a contract of sale, on written notice to the vendor or the vendor’s agent:
(i)
Has the unconditional right to rescind the contract at any time before, or within 5 days after, receipt of the notice and copies of the easements; and
(ii)
Is entitled to the immediate return of any deposits made in accordance with the contract.
(f)
(1)
Within 30 calendar days after a sale of property encumbered by a conservation easement, the purchaser shall notify the owner of a conservation easement of the sale.
(2)
The notification shall include, to the extent reasonably available:
(i)
The name and address of the purchaser;
(ii)
The name of the vendor;
(iii)
The address of the property; and
(iv)
The date of the sale.
(g)
In satisfying the requirements of subsection (c) of this section, the vendor and purchaser shall be entitled to rely on the conservation easement recorded in the land records of the county where the property is located.
Md. Code Ann., Real Prop. § 10-706 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–706LinkCopy Citation
(a)
(1)
This section applies only to the sale of residential real property in Harford County.
(2)
This section does not apply to:
(i)
A sale of property to a purchaser who does not intend to occupy the property; or
(ii)
A sale in an action to foreclose a mortgage, deed of trust, or other lien.
(b)
The vendor of property that is subject to a tax of a special taxing district as authorized in §§ 21–503, 21–504, and 21–519 through 21–523 of the Local Government Article may not enforce a contract for the sale of the property unless:
(1)
The purchaser of the property is provided with the following information in writing:
(i)
A description of the area included within the special taxing district;
(ii)
The maximum amount of bonds and other obligations to be issued with respect to the special taxing district;
(iii)
A description of the purposes for which the special taxing district was created, and for which the bonds or other obligations have been issued, including a description of any improvements;
(iv)
The amount of special taxes levied on the property for the most recent year or, if taxes were not levied on the property for the most recent year, a good–faith estimate of the annual tax that will be levied on the property;
(v)
The maximum amount of special taxes that may be levied on the property in a year;
(vi)
The projected time period over which any bonds or obligations issued in connection with the special taxing district are to be repaid; and
(vii)
A description of the purchaser’s right to fully prepay the special taxing district obligations; and
(2)
The contract for the sale of the property contains a notice, written in conspicuous, bold, and underscored type, that is substantially the same as the following:
“NOTICE REQUIRED BY MARYLAND LAW
The property that is the subject of this contract is located within a special taxing district, which has been created for the purpose of financing or refinancing the costs related to certain infrastructure improvements within the taxing district. These costs will be repaid from the proceeds of special taxes collected from the owners of properties located within the special taxing district.
State law requires that the seller disclose to you, at or before the time you enter into this contract, the following information: (1) a description of the area included within the special taxing district, (2) the maximum amount of bonds and other obligations to be issued with respect to the special taxing district, (3) a description of the purposes for which the special taxing district was created, and for which the bonds or other obligations have been issued, including a description of any infrastructure improvements, (4) the amount of special taxes levied on the property for the most recent year or, if taxes were not levied on the property for the most recent year, a good–faith estimate of the annual tax that will be levied on the property, (5) the maximum amount of special taxes that may be levied on the property in a year, (6) the projected time period over which any bonds or obligations issued in connection with the special taxing district are to be repaid, and (7) your right as the prospective owner of the property to fully prepay the special taxing district obligations with respect to the property.
You have 7 calendar days from the date you receive the above information relating to the special taxing district to cancel this contract by sending a written notice of cancellation to the seller. You are not required to state a reason for canceling the contract. Upon cancellation of the contract, you are entitled to a refund of any deposit you may have made under this contract.
A seller may not require that you waive your right to receive the information relating to the special taxing district or your right to cancel the contract within 7 calendar days of receipt of the information. A seller may not require that you close the sale under this contract within 7 calendar days from the date you receive the information relating to the special taxing district.
State law provides that any seller who, in disclosing the information relating to the special taxing district, makes any false statement of a material fact or omits a material fact that, in light of the circumstances under which the statements were made, is necessary to make the statements not misleading is liable to the purchaser for damages proximately caused by the seller’s false or omitted statement. Any action for damages caused by the seller’s false statement or omission of a material fact must be brought within 1 year from the date of closing under this contract.
You should carefully review the information relating to the special taxing district provided by the seller to familiarize yourself with your rights and obligations as a prospective owner of property located within the special taxing district.”
(c)
(1)
The requirements of subsection (b)(1) of this section shall be deemed fulfilled if the information required to be provided to the purchaser is provided to the purchaser in writing, in a clear and concise manner.
(2)
A vendor may provide the purchaser with the information required under subsection (b)(1) of this section by providing the purchaser with a collection of documents if the documents convey the information required under subsection (b)(1) of this section in a clear and concise manner.
(3)
In satisfying the requirements of subsection (b)(1) of this section, the vendor may rely on any document that, in connection with the creation of the special taxing district, was filed by the owner of the property in the land records of the county in which the property is located.
(d)
(1)
A purchaser under a contract for the sale of property that is subject to this section may cancel the contract within 7 calendar days of receiving the information under subsection (b)(1) of this section by delivering written notice of cancellation to the vendor.
(2)
Unless the purchaser consents to an earlier settlement date, the settlement of a contract for the sale of property that is subject to this section may not take place within 7 calendar days from the date the purchaser receives the information required under subsection (b)(1) of this section.
(3)
Notice under paragraph (1) of this subsection shall be delivered by:
(i)
Hand–delivery; or
(ii)
First–class mail.
(4)
On cancellation of a contract for the purchase of property under paragraph (1) of this subsection, the vendor shall refund to the purchaser any deposits paid by, or on behalf of, the purchaser under the canceled contract.
(e)
(1)
Any vendor that, in providing the purchaser with the information required under subsection (b)(1) of this section, makes any false statement of a material fact or omits a material fact that, in light of the circumstances under which the statements were made, is necessary to make the statements not misleading is liable to the purchaser for damages proximately caused by the vendor’s false or omitted statement.
(2)
An action brought under paragraph (1) of this subsection must be brought within 1 year from the date of settlement of the contract of sale.
Md. Code Ann., Real Prop. § 10-707 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–707LinkCopy Citation
(a)
(1)
This section applies only to the sale of residential real property in Cecil County.
(2)
This section does not apply to:
(i)
A sale of property to a purchaser who does not intend to occupy the property; or
(ii)
A sale in an action to foreclose a mortgage, deed of trust, or other lien.
(b)
The vendor of property that is subject to a tax of a special taxing district as authorized in §§ 21–503, 21–504, and 21–519 through 21–523 of the Local Government Article may not enforce a contract for the sale of the property unless:
(1)
The purchaser of the property is provided with the following information in writing on or before entering into the contract for the sale of the property:
(i)
A description of the area included within the special taxing district;
(ii)
The maximum amount of bonds and other obligations to be issued with respect to the special taxing district;
(iii)
A description of the purposes for which the special taxing district was created, and for which the bonds or other obligations have been issued, including a description of any improvements;
(iv)
The amount of special taxes levied on the property for the most recent year or, if taxes were not levied on the property for the most recent year, a good–faith estimate of the annual tax that will be levied on the property;
(v)
The maximum amount of special taxes that may be levied on the property in a year;
(vi)
The projected time period over which any bonds or obligations issued in connection with the special taxing district are to be repaid; and
(vii)
A description of the purchaser’s right to fully prepay the special taxing district obligations; and
(2)
The contract for the sale of the property contains a notice, written in conspicuous, bold, and underscored type, that is substantially the same as the following:
“NOTICE REQUIRED BY MARYLAND LAW
The property that is the subject of this contract is located within a special taxing district, which has been created for the purpose of financing or refinancing the costs related to certain infrastructure improvements within the taxing district. These costs will be repaid from the proceeds of special taxes collected from the owners of properties located within the special taxing district.
State law requires that the seller disclose to you, at or before the time you enter into this contract, the following information: (1) a description of the area included within the special taxing district, (2) the maximum amount of bonds and other obligations to be issued with respect to the special taxing district, (3) a description of the purposes for which the special taxing district was created, and for which the bonds or other obligations have been issued, including a description of any infrastructure improvements, (4) the amount of special taxes levied on the property for the most recent year or, if taxes were not levied on the property for the most recent year, a good–faith estimate of the annual tax that will be levied on the property, (5) the maximum amount of special taxes that may be levied on the property in a year, (6) the projected time period over which any bonds or obligations issued in connection with the special taxing district are to be repaid, and (7) your right as the prospective owner of the property to fully prepay the special taxing district obligations with respect to the property.
You have 20 calendar days from the date you receive the above information relating to the special taxing district to cancel this contract by sending a written notice of cancellation to the seller. You are not required to state a reason for cancelling the contract. Upon cancellation of the contract, you are entitled to a refund of any deposit you may have made under this contract.
A seller may not require that you waive your right to receive the information relating to the special taxing district or your right to cancel the contract within 20 calendar days of receipt of the information. A seller may not require that you close the sale under this contract within 20 calendar days from the date you receive the information relating to the special taxing district.
State law provides that any seller who, in disclosing the information relating to the special taxing district, makes any false statement of a material fact or omits a material fact that, in light of the circumstances under which the statements were made, is necessary to make the statements not misleading is liable to the purchaser for damages proximately caused by the seller’s false or omitted statement. Any action for damages caused by the seller’s false statement or omission of a material fact must be brought within 1 year from the date of closing under this contract.
You should carefully review the information relating to the special taxing district provided by the seller to familiarize yourself with your rights and obligations as a prospective owner of property located within the special taxing district.”
(c)
(1)
The requirements of subsection (b)(1) of this section shall be deemed fulfilled if the information required to be provided to the purchaser is provided to the purchaser in writing, in a clear and concise manner.
(2)
A vendor may provide the purchaser with the information required under subsection (b)(1) of this section by providing the purchaser with a collection of documents if the documents convey the information required under subsection (b)(1) of this section in a clear and concise manner.
(3)
In satisfying the requirements of subsection (b)(1) of this section, the vendor may rely on any document that, in connection with the creation of the special taxing district, was filed by the owner of the property in the land records of the county in which the property is located.
(d)
(1)
A purchaser under a contract for the sale of property that is subject to this section may cancel the contract within 20 calendar days of receiving the information under subsection (b)(1) of this section by delivering written notice of cancellation to the vendor.
(2)
Unless the purchaser consents to an earlier settlement date, the settlement of a contract for the sale of property that is subject to this section may not take place within 20 calendar days from the date the purchaser receives the information required under subsection (b)(1) of this section.
(3)
Notice under paragraph (1) of this subsection shall be delivered by:
(i)
Hand–delivery; or
(ii)
First–class mail.
(4)
On cancellation of a contract for the purchase of property under paragraph (1) of this subsection, the vendor shall refund to the purchaser any deposits paid by, or on behalf of, the purchaser under the cancelled contract.
(e)
(1)
Any vendor that, in providing the purchaser with the information required under subsection (b)(1) of this section, makes any false statement of a material fact or omits a material fact that, in light of the circumstances under which the statements were made, is necessary to make the statements not misleading is liable to the purchaser for damages proximately caused by the vendor’s false or omitted statement.
(2)
An action brought under paragraph (1) of this subsection must be brought within 1 year from the date of settlement of the contract of sale.
Md. Code Ann., Real Prop. § 10-708 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–708LinkCopy Citation
(a)
In this section, “transfer fee” means a charge payable on the transfer of an interest in real property or payable for the right to accept a transfer of an interest in real property.
(b)
This section does not apply to:
(1)
An instrument conveying a fee simple interest in real property that provides for consideration paid by the purchaser to the vendor for the interest being transferred;
(2)
The payment of principal, interest, or fees under a mortgage loan agreement on the sale of property by the mortgagee;
(3)
A limited liability company, limited liability partnership, corporation, joint venture, or partnership agreement in which a member, shareholder, or partner contributes real property to the limited liability company, limited liability partnership, corporation, joint venture, or partnership agreement;
(4)
An agreement providing for a series of related transfers of a fee simple interest in real property if the agreement states the price of the transferred interest, any consideration exchanged, the name of the vendor, the name of the purchaser, and any other essential terms for each transfer of interest;
(5)
An affordable housing covenant, servitude, easement, condition, or restriction in a deed, declaration, land sale contract, loan agreement, promissory note, trust deed, mortgage, security agreement, or other instrument, including instruments executed by:
(i)
A public body;
(ii)
An agency of the federal government;
(iii)
A corporation whose purposes include providing affordable housing for low–income and moderate–income households;
(iv)
A limited liability company with at least one member that is a corporation described under item (iii) of this paragraph;
(v)
A consumer housing cooperative; or
(vi)
A federally recognized Indian tribe;
(6)
A fee required to be paid to:
(i)
A homeowners association as defined in § 11B–101 of this article;
(ii)
A council of unit owners as defined in § 11–101 of this article;
(iii)
A managing entity of a timeshare plan as defined in § 11A–101 of this article;
(iv)
Any other owners association that is governed by recorded covenants, conditions, and restrictions; or
(v)
An agent for an association or managing entity described in this paragraph; or
(7)
An agreement with a person licensed to provide real estate brokerage services under Title 17 of the Business Occupations and Professions Article to pay a commission to the licensee for the real estate brokerage services provided.
(c)
(1)
A person who conveys a fee simple interest in real property may not record a covenant against the title to the real property for the payment of a transfer fee.
(2)
A covenant that requires the payment of a transfer fee on the conveyance of a fee simple interest in real property is void.
Md. Code Ann., Real Prop. § 10-709 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–709LinkCopy Citation
(a)
A contract of sale for single family residential real property improved by four or fewer single family units shall contain notice of the right to appeal provided under § 14–502(a)(2) of the Tax – Property Article.
(b)
The notice required under subsection (a) of this section shall be in substantially the following form:
“If any real property is transferred after January 1 and before the beginning of the next taxable year to a new owner, the new owner may submit a written appeal as to a value or classification on or before 60 days after the date of the transfer.”
Md. Code Ann., Real Prop. § 10-710 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–710LinkCopy Citation
(a)
In this section, “community amenity” includes:
(1)
A country club;
(2)
A golf course;
(3)
A health club;
(4)
A park;
(5)
A swimming pool;
(6)
A tennis court; and
(7)
A walking trail.
(b)
(1)
In Prince George’s County, a contract of sale for residential real property that includes an agreement by the home builder to provide a community amenity shall include a disclosure statement that:
(i)
Identifies the community amenity provided in the contract of sale; and
(ii)
Specifies when the community amenity will be completed in accordance with a recreational facilities agreement recorded with the Prince George’s County Planning Department.
(2)
The disclosure statement required under paragraph (1) of this subsection shall be:
(i)
Dated and signed by the purchaser and the home builder; and
(ii)
Included in or attached to the contract of sale.
(3)
A purchaser who does not receive the disclosure statement required under paragraph (1) of this subsection on or before entering into the contract of sale has an unconditional right, on written notice to the home builder, to rescind the contract of sale at any time:
(i)
Before the receipt of the disclosure statement; or
(ii)
Within 5 days after receipt of the disclosure statement.
(c)
Any advertising for the sale of residential real property in a community development in Prince George’s County that will include a community amenity shall include disclosure of the requirements under this section.
(d)
In Prince George’s County, a home builder that does not make the community amenity available as provided in the contract of sale may be liable for breach of contract.
(e)
In Prince George’s County, a home builder shall make a copy of any recreational facilities agreement recorded with the Prince George’s County Planning Department available to prospective purchasers in the sales or management office of the community development.
(f)
In Prince George’s County, a home builder shall display the following information in the sales or management office of the community development in a location visible to prospective purchasers:
(1)
The amenities listed in any recreational facilities agreement recorded with the Prince George’s County Planning Department;
(2)
A detailed site plan and the building permit number of each amenity listed in the recreational facilities agreement; and
(3)
The expected completion dates of each amenity as stated in the recreational facilities agreement.
Md. Code Ann., Real Prop. § 10-711 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–711LinkCopy Citation
(a)
In this section, “zone of dewatering influence” means the area around a surface mine in karst terrain designated by the Department of the Environment under § 15–813 of the Environment Article.
(b)
This section applies only to the sale of a property located within Baltimore County, Carroll County, Frederick County, and Washington County.
(c)
A contract for the sale of real property shall include, in conspicuous, bold, and underscored type, the following buyer notice in the contract:
“Notice on Zones of Dewatering Influence
A purchaser of real property located in Baltimore County, Carroll County, Frederick County, or Washington County is advised to contact the Maryland Department of the Environment to determine whether the real property for purchase is located within a zone of dewatering influence. Maryland Law provides certain remedies for property impacted by dewatering.”.
(d)
(1)
A purchaser that receives the notice required under subsection (c) of this section on or before entering into a contract of sale does not have the right to rescind the contract of sale based on the information received from the vendor under subsection (c) of this section.
(2)
(i)
A purchaser that does not receive the notice required under subsection (c) of this section on or before entering into a contract of sale, on written notice to the vendor or the vendor’s agent:
(1)
Has the unconditional right to rescind the contract at any time before, or within 5 days after, receipt of the notice required under subsection (c) of this section; and
(2)
Is entitled to the immediate return of any deposits made in accordance with the contract.
(ii)
The return of any deposits held in trust by a licensed real estate broker to a purchaser under subparagraph (i)2 of this paragraph shall comply with the procedures set forth in § 17–505 of the Business Occupations and Professions Article.
Md. Code Ann., Real Prop. § 10-712 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–712LinkCopy Citation
(a)
A contract of sale for single–family residential real property in Montgomery County shall include a notice that school boundaries designated for the property may be subject to change.
(b)
A contract subject to the requirements of subsection (a) of this section may not be voided solely because:
(1)
The notice required under subsection (a) of this section is not included in the contract; or
(2)
The buyer does not initial the notice required under subsection (a) of this section.
Md. Code Ann., Real Prop. § 10-713 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–713LinkCopy Citation
(a)
In this section, “maximum contaminant level” and “water quality testing” have the meanings stated in § 9–4A–01 of the Environment Article.
(b)
(1)
A contract for the sale of real property on which a private or domestic water supply well is located shall include a provision requiring, as a condition of the sale, that the purchaser ensure that water quality testing of the well be conducted.
(2)
(i)
Settlement on the contract for the sale of the real property may not occur until the vendor and the purchaser have each received and reviewed the results of the water quality testing conducted under this subsection.
(ii)
At settlement on the contract for the sale of the real property, the vendor and the purchaser shall each certify in writing that they have received and reviewed the results of the water quality testing.
(3)
For the purpose of this subsection, the results of the water quality testing remain valid for 3 years.
(4)
A purchaser may waive in writing the water quality testing requirements under this subsection.
(c)
(1)
This subsection applies to a State–certified laboratory that conducts water quality testing for the purpose of complying with this section.
(2)
A State–certified laboratory shall provide the results of a water quality test on a standardized reporting form, as required by the Department of the Environment, that includes a report on any substance that exceeds:
(i)
The maximum contaminant level for that substance; or
(ii)
A harmful level for that substance, as determined by the Department of the Environment.
(3)
A State–certified laboratory may provide the results of water quality testing only to:
(i)
(1)
The vendor and purchaser of real property for which the water quality testing was conducted; and
(2)
Any person authorized by the vendor or purchaser;
(ii)
The Department of the Environment in accordance with paragraph (4) of this subsection; and
(iii)
Any person designated by a court order.
(4)
Within 5 business days after completion of water quality testing, a State–certified laboratory shall submit to the Department of the Environment the results of water quality testing and include the following information:
(i)
A statement that the water quality testing is for the purpose of complying with this section;
(ii)
The location of the real property, described by block and lot number, street address, county, and, if applicable, municipality;
(iii)
The name and mailing address of the person that requested the water quality testing;
(iv)
The name of the employee or an authorized representative of the laboratory who collected the well water sample;
(v)
The date and time that the well water sample was collected and the specific point of collection;
(vi)
The date and time the well water sample was analyzed by the laboratory;
(vii)
Whether the well water sample is raw water or finished water;
(viii)
The well tag number, if known; and
(ix)
Any other information required by the Department of the Environment.
Md. Code Ann., Real Prop. § 10-714 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–714LinkCopy Citation
(a)
The seller of residential property that is located within 1 mile of a National Priorities List (NPL) Superfund site shall provide the buyer with an addendum to the contract of sale that contains, in conspicuous type:
(1)
Identification of the Superfund site that is within 1 mile of the property;
(2)
The definition of a National Priorities List (NPL) Superfund site under U.S. Environmental Protection Agency guidelines;
(3)
The Uniform Resource Locator (URL) for the following U.S. Environmental Protection Agency websites:
(i)
Search for Superfund Sites Where You Live; and
(ii)
Superfund Human Exposure Dashboard; and
(4)
A notice that within 5 days after signing and dating the contract of sale and on written notice to the seller, the buyer:
(i)
May void the contract of sale; and
(ii)
On rescission of the contract of sale, shall receive a full refund of any money paid to the seller.
(b)
An addendum under subsection (a) of this section shall be provided in the following form or a substantially similar form:
“NATIONAL PRIORITIES LIST (NPL) SUPERFUND SITE DISCLOSURE ADDENDUM (the “Addendum”)
BUYER and SELLER hereby acknowledge that:
(1)
A National Priorities List (NPL) Superfund site is a site of national priority among the known releases or threatened releases of hazardous substances, pollutants, or contaminants throughout the United States and its territories;
(2)
The SELLER hereby notifies the BUYER that the property is located within 1 mile of ____________________________, which is a National Priorities List (NPL) Superfund site. Information about the location of Superfund sites throughout the State of Maryland and across the United States can be found at the Environmental Protection Agency’s Search for Superfund Sites Where You Live website; and
(3)
The BUYER hereby acknowledges that within five (5) days after signing and dating the Addendum, and on written notice to the SELLER, the BUYER may void the Contract of Sale and is entitled to the return of any money paid to the SELLER on account of the Contract of Sale.
SELLER Signature _____________________________ Date _______________
BUYER Signature ______________________________ Date _______________”.
Md. Code Ann., Real Prop. § 10-715 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–715LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Residential property” means property improved by four or fewer single–family dwelling units that are designed principally and are intended for human habitation.
(3)
“Wholesale buyer” means a person that enters into a contract of sale with an owner of owner–occupied residential property in order to assign the contract to another person for a monetary assignment fee.
(4)
“Wholesale seller” means a person that, without holding legal title to owner–occupied residential property:
(i)
Enters into a contract of sale for the property; and
(ii)
Assigns the person’s beneficial interest in the property to another.
(b)
This section does not apply to a sale proceeding under § 14–215 of the Maryland Rules.
(c)
(1)
Before entering into a contract of sale for residential property, a wholesale buyer shall disclose in writing to the owner of the property that the wholesale buyer may assign the contract of sale to another person.
(2)
Before assigning a contract of sale for residential property, a wholesale seller shall disclose in writing to a prospective assignee that the wholesale seller holds an equitable interest in the property and may not be able to convey title to the property.
(d)
Notwithstanding any provision of a contract of sale or any other agreement, an owner of residential property may rescind a contract of sale to a wholesale buyer, or the assignee or successor of a wholesale buyer, without penalty at any time before closing if the wholesale buyer:
(1)
Does not provide notice in accordance with the requirements of this section; and
(2)
Assigns the contract of sale.
(e)
(1)
Notwithstanding any provision of a contract of sale or any other agreement, an assignee may rescind the agreement to purchase under the assigned contract of sale for residential property without penalty at any time before closing if a wholesale seller does not provide notice in accordance with the requirements of this section.
(2)
An assignee that rescinds a contract under paragraph (1) of this subsection is entitled to a refund of any deposit paid in connection with the assignment of a contract of sale of the residential property.
Md. Code Ann., Real Prop. § 10-716 (2026)
Title 10. Sales of Property
Subtitle 7. Contracts of Sale -- Miscellaneous Provisions
§ 10–716LinkCopy Citation
(a)
In this section, “FEMA elevation certificate” has the meaning stated in § 5–810 of the Environment Article.
(b)
(1)
This section applies only to residential real property improved by four or fewer single family units.
(2)
This section does not apply to:
(i)
The initial sale of a single family residence that:
(1)
Has never been occupied; or
(2)
A certificate of occupancy has been issued for within 1 year before the date on which the vendor and purchaser enter into a contract of sale;
(ii)
A transfer of property that is exempt from the transfer tax under § 13–207 of the Tax – Property Article, except:
(1)
A land installment contract of sale; or
(2)
An option to purchase real property;
(iii)
A sale by a lender, or an affiliate of a lender, that acquired the real property by foreclosure or deed in lieu of foreclosure;
(iv)
A sheriff’s sale, tax sale, or sale by foreclosure, partition, or court–appointed trustee;
(v)
A transfer by a fiduciary in the course of administering a decedent’s estate, guardianship, conservatorship, or trust;
(vi)
A transfer of a single family residential real property that the buyer will convert into a use other than residential; or
(vii)
A sale of unimproved real property.
(c)
Beginning July 1, 2027, before entering into a contract of sale, a vendor of residential real property shall provide to the purchaser:
(1)
A completed flood risk disclosure statement form developed and published by the Department of the Environment under § 5–810 of the Environment Article; and
(2)
If available, a copy of the FEMA elevation certificate for the property.
Subtitle 8. Miscellaneous Provisions
Md. Code Ann., Real Prop. § 10-801 (2026)
Title 10. Sales of Property
Subtitle 8. Miscellaneous Provisions
§ 10–801LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Home builder” means a person that undertakes to erect or otherwise construct a new home.
(3)
“Minimum visitability features” means:
(i)
A ground level entrance:
(1)
That has a width of 36 or more inches;
(2)
That is accessible from the outside of the new home or an attached garage; and
(3)
In which the threshold of the entrance is no more than 1.5 inches higher than the interior floor and the exterior landing; and
(ii)
A circulation route from the ground level entrance to an unattached garage, parking space, or public right–of–way that is free of any curbs, steps, landings, obstacles, or other vertical changes in level that are more than 1.5 inches.
(4)
(i)
“New home” means a newly constructed single–family dwelling unit.
(ii)
“New home” does not include:
(1)
A custom home as defined in § 10–501 of this title; or
(2)
A mobile home as defined in § 8A–101 of this article.
(b)
This section does not apply to:
(1)
A new home that is located above another new home;
(2)
An attached new home;
(3)
A new home:
(i)
That does not have a garage; and
(ii)
In which the slope between the finished ground level at all unit entrances to the nearest point along a property line that borders a public right–of–way is greater than 10%; or
(4)
A new home in which compliance with the design flood elevation restrictions will cause:
(i)
The finished floor to be more than 30 inches above the finished ground level at all unit entrances; or
(ii)
The slope between the finished floor at all unit entrances to the nearest point along a property line that borders a public right–of–way to be greater than 10%.
(c)
This section applies only to a home builder that constructs 11 or more new homes in a subdivision that contains 11 or more new homes.
(d)
(1)
Subject to paragraph (2) of this subsection, at the time of offering new homes in a subdivision for sale, a home builder shall offer minimum visitability features as an option for purchase.
(2)
The offer of minimum visitability features shall be accompanied by:
(i)
A point of sale document that describes the minimum visitability features; and
(ii)
A generic drawing or photograph that shows the minimum visitability features and the lots and new home types that are conducive to the minimum visitability features that could be constructed.
Md. Code Ann., Real Prop. § 10-802 (2026)
Title 10. Sales of Property
Subtitle 8. Miscellaneous Provisions
§ 10–802LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Escrow agent” means a person engaged in the business of residential real estate settlements who receives trust money.
(3)
“Residential real estate” means:
(i)
Real property improved by four or fewer single–family dwelling units that are designed principally and are intended for human habitation; and
(ii)
Unimproved real property zoned for residential use by the local zoning authority of the county or municipality in which the real property is located.
(4)
“Trust money” means a deposit made by a purchaser in connection with a residential real estate sales transaction that the purchaser delivers to an escrow agent to hold for the benefit of the purchaser and the seller.
(b)
This section does not apply to:
(1)
Banks, trust companies, savings and loan associations, savings banks, or credit unions;
(2)
A homebuilder registered under Title 4.5 of the Business Regulation Article who is engaged in the initial sale of residential real estate; or
(3)
A real estate salesperson, associate real estate broker, or real estate broker licensed under Title 17 of the Business Occupations and Professions Article.
(c)
When an escrow agent agrees to hold trust money, the escrow agent shall enter into a written agreement with the purchaser and seller of the residential real estate that contains the following information:
(1)
The amount of the trust money delivered to the escrow agent;
(2)
The date the trust money was delivered to the escrow agent;
(3)
The responsibility of the escrow agent to notify the purchaser and seller of trust money returned due to dishonored funds;
(4)
The conditions under which the escrow agent may release the trust money; and
(5)
The process to address disputes over the release of the trust money.
(d)
If a purchaser terminates a real estate transaction in accordance with § 10–803 of this subtitle, the escrow agent shall distribute the trust money to the purchaser in accordance with the requirements of this section.
(e)
Nothing in this section may be construed to prohibit an escrow agent from transferring trust money to another escrow agent if the purchaser of the residential real estate for which the trust money is held chooses the escrow agent to whom the trust money is transferred.
Md. Code Ann., Real Prop. § 10-803 (2026)
Title 10. Sales of Property
Subtitle 8. Miscellaneous Provisions
§ 10–803LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Contingency” means a clause included in a contract of sale for residential real estate that:
(i)
Requires a specific event or action to occur for the contract to be enforceable; and
(ii)
Entitles a party exercising the contingency to terminate the contract and receive distribution of the trust money.
(3)
“Holder of trust money” means:
(i)
An escrow agent as defined in § 10–802 of this subtitle; or
(ii)
A licensed real estate broker as defined in § 17–101 of the Business Occupations and Professions Article.
(4)
“Residential real estate” has the meaning stated in § 10–802 of this subtitle.
(5)
“Trust money” has the meaning stated in § 10–802 of this subtitle.
(b)
(1)
(i)
If a purchaser terminates a residential real estate contract under the terms of a contingency clause of a contract of sale for residential real estate, the purchaser may request the return of the trust money by providing the holder of the trust money and the seller written notice of the request.
(ii)
Within 10 days after receiving a request made in accordance with subparagraph (i) of this paragraph, the seller shall provide the holder of the trust money with a copy of a complaint filed in the District Court or a copy of a notarized, written request for mediation provided to a mediator relating to the distribution of the trust money.
(iii)
If the holder of the trust money has not received a copy of a complaint filed, or a request for mediation made, in accordance with subparagraph (ii) of this paragraph, the holder of the trust money shall:
(1)
Distribute the trust money to the purchaser within 5 days after the expiration of the time specified in subparagraph (ii) of this paragraph; and
(2)
Notify the purchaser and seller of the distribution.
(iv)
If the holder of trust money receives a copy of a complaint filed, or a request for mediation made, in accordance with subparagraph (ii) of this paragraph, they shall hold the trust money until:
(1)
A court order or mediation agreement authorizes the distribution of the money; or
(2)
The holder of the trust money files an interpleader action in the District Court.
(2)
A holder of trust money may not be liable for a decision to distribute trust money made in accordance with this subsection.
(c)
A claimant who is aggrieved by a distribution of trust money under this section may file an action in the District Court sitting in the district in which the residential real estate is located.