§ 10–803
Statutes in effect as of October 1, 2026.
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.