reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 2 - Trust Relationships in the Construction Industry › Section 9-201 - Money to Be Held in Trust; Commingling

(a)    For the purposes of this subtitle, “managing agent” means an employee of a contractor or subcontractor who is responsible for the direction over or control of money held in trust by the contractor or subcontractor under subsection (b) of this section.
(b)    (1)    Any money paid under a contract by an owner to a contractor, or by the owner or contractor to a subcontractor for work done or materials furnished, or both, for or about a building by any subcontractor, shall be held in trust by the contractor or subcontractor, as trustee, for those subcontractors who did work or furnished materials, or both, for or about the building, for purposes of paying those subcontractors.
(2)    An officer, director, or managing agent of a contractor or subcontractor who has direction over or control of money held in trust by a contractor or subcontractor under paragraph (1) of this subsection is a trustee for the purpose of paying the money to the subcontractors who are entitled to it.
(c)    (1)    Nothing contained in this subtitle shall be construed as requiring money held in trust by a contractor or subcontractor under subsection (b) of this section to be placed in a separate account.
(2)    If a contractor or subcontractor commingles money held in trust under this section with other money, the mere commingling of the money does not constitute a violation of this subtitle.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 2 - Trust Relationships in the Construction Industry › Section 9-202 - Liability for Retention or Use of Money Held in Trust Under 9-201 of This Subtitle

Any officer, director, or managing agent of any contractor or subcontractor, who knowingly retains or uses the money held in trust under § 9–201 of this subtitle, or any part thereof, for any purpose other than to pay those subcontractors for whom the money is held in trust, shall be personally liable to any person damaged by the action.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 2 - Trust Relationships in the Construction Industry › Section 9-204 - Applicability of Subtitle; Definitions

(a)    This subtitle applies to contracts subject to Title 17, Subtitle 1 of the State Finance and Procurement Article, known as the “Maryland Little Miller Act”, as well as property subject to § 9-102 of this title.
(b)    This subtitle does not apply to:
(1)    A contract for the construction and sale of a single family residential dwelling; or
(2)    A home improvement contract by a contractor licensed under the Maryland Home Improvement Law.
(c)    In this subtitle, “owner”, “contractor”, and “subcontractor” have the same meanings as in § 9-101 of this title.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 3 - Construction Contracts › Section 9-301 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    (1)    “Contract” means an agreement of any kind or nature, express or implied, for doing work or furnishing materials, or both, for or about a building.
(2)    “Contract” includes an agreement for:
(i)    The erection, repair, rebuilding, or improvement of a building;
(ii)    The drilling and installation of wells to supply water;
(iii)    The construction or installation of any swimming pool or fencing;
(iv)    The grading, filling, landscaping, and paving of the premises;
(v)    The installation of waterlines, sanitary sewers, storm drains, or streets; or
(vi)    The erection, repair, rebuilding, or improvement of a wharf.
(c)    “Contractor” means a person who has a contract with an owner.
(d)    “Owner” means:
(1)    The owner of the land; or
(2)    An owner’s tenant for life or for years, provided the tenant enters into the contract with the contractor.
(e)    (1)    “Subcontractor” means a person who has a contract with anyone except the owner or the owner’s agent.
(2)    “Subcontractor” includes a supplier.
(f)    “Undisputed amount” means an amount owed on a contract for which there is no good faith dispute, including any retainage withheld.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 3 - Construction Contracts › Section 9-302 - Prompt Payment

(a)    Except for work done or materials furnished under a contract enumerated in § 9–305 of this subtitle, a contractor or subcontractor who does work or furnishes material under a contract shall be entitled to prompt payment under subsection (b) of this section.
(b)    (1)    If the contract is with an owner, the owner shall:
(i)    If the contract does not provide for specific dates or times of payment, pay to the contractor undisputed amounts owed under the terms of the written contract, within the earlier of:
1.    30 days after the day on which the occupancy permit is granted; or
2.    30 days after the day on which the owner or the owner’s agent takes possession; or
(ii)    If the contract provides for specific dates or times of payment, pay to the contractor undisputed amounts owed within 7 days after the date or time specified in the contract.
(2)    Paragraph (1) of this subsection does not apply to any contract between the contractor and:
(i)    The State;
(ii)    A county;
(iii)    A municipal corporation;
(iv)    A board of education; or
(v)    A public authority or instrumentality.
(3)    If the contract is not with an owner, the contractor or subcontractor shall pay undisputed amounts owed to its subcontractors within 7 days after receipt by the contractor or subcontractor of each payment received for its subcontractors’ work or materials.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 3 - Construction Contracts › Section 9-303 - Remedies

(a)    In this section, “undisputed amounts” includes any retention proceeds that exceed the amount authorized to be retained under § 9–304 of this subtitle.
(b)    In addition to any other remedy provided under any other provision of law, a court of competent jurisdiction, for good cause shown may:
(1)    Award any equitable relief for prompt payment of undisputed amounts that it considers necessary, including the enjoining of further violations; and
(2)    In any action, award to the prevailing party:
(i)    Interest from the date the court determines that the amount owed was due; and
(ii)    Any reasonable costs incurred.
(c)    If a court determines that an owner, contractor, or subcontractor has acted in bad faith by failing to pay any undisputed amounts owed as required under § 9–302 of this subtitle, the court may award to the prevailing party reasonable attorney’s fees.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 3 - Construction Contracts › Section 9-304 - Retention Proceeds

(a)    In this section, “retention proceeds” means money earned but retained under the terms of a contract or subcontract:
(1)    By an owner to guarantee performance of the contract by a contractor;
(2)    By a contractor to guarantee performance of a subcontract by a subcontractor; or
(3)    By a subcontractor to guarantee performance of a subcontract by another subcontractor.
(b)    This section does not apply to:
(1)    A contract in an amount less than $100,000; or
(2)    A contract or subcontract for a project funded wholly or in part by or through the Department of Housing and Community Development.
(c)    Except as provided in this section:
(1)    If a contractor has furnished 100% security to guarantee the performance of a contract and 100% security to guarantee payment for labor and materials, including leased equipment:
(i)    The retention proceeds under the terms of a contract may not exceed 5% of the contract price; and
(ii)    The retention proceeds of any payment due under the terms of a contract from an owner to a contractor may not exceed 5% of the payment;
(2)    The retention proceeds of any payment due under the terms of a contract from a contractor to a subcontractor may not exceed the percentage of retention proceeds from the owner to the contractor; and
(3)    The retention proceeds of any payment due under the terms of a contract from a subcontractor to another subcontractor may not exceed the percentage of retention proceeds from the contractor to the subcontractor.
(d)    This section may not be construed to prohibit the withholding of any amount due:
(1)    From the owner to the contractor if the owner reasonably determines that the contractor’s performance under the contract provides reasonable grounds for withholding the additional amount;
(2)    From the contractor to any subcontractor if the contractor reasonably determines that the subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount; or
(3)    From a subcontractor to another subcontractor if the subcontractor determines that the other subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.
(e)    Undisputed retention proceeds retained by an owner under this section shall be paid within 90 days after the date of substantial completion, as defined by the applicable contract or subcontract.
2023 Maryland Statutes › Real Property › Title 9 - Statutory Liens on Real Property › Subtitle 3 - Construction Contracts › Section 9-305 - Exceptions

This subtitle does not:
(1)    Affect the rights of contracting parties under Subtitle 1 of this title;
(2)    Apply to a contract for the construction and sale of a single family residential dwelling;
(3)    Apply to any transaction under the Custom Home Protection Act, Title 10, Subtitle 5 of this article; and
(4)    Apply to a home improvement contract by a contractor licensed under the Maryland Home Improvement Law.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-101 - Definitions

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-102 - Form and Delivery of Land Installment Contracts

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-104 - Recordation

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-105 - Purchase Money Mortgage

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-106 - Compliance With Terms and Conditions by Purchaser on or Before Date Designated in Notice to Terminate

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-107 - Statement to Be Furnished by Vendor

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 1 - Land Installment Contracts › Section 10-108 - Right of Purchaser to Enforce Provisions of Subtitle

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 2 - Express and Implied Warranties › Section 10-201 - Definitions

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 2 - Express and Implied Warranties › Section 10-202 - Creation of Express Warranties; Exclusion or Modification of Express Warranty

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 2 - Express and Implied Warranties › Section 10-203 - Implied Warranties

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 2 - Express and Implied Warranties › Section 10-204 - Breach of Warranty; Expiration of Warranty; Limitation of Actions

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 2 - Express and Implied Warranties › Section 10-205 - Grant to Intermediate Purchaser to Evade Liability

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-301 - Escrow Accounts, Surety Bonds or Irrevocable Letters of Credit to Be Maintained by Vendor or Builder Receiving Deposit

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-301.1 - Money Received by Vendor or Builder

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-301.2 - Interest on and Investment of Trust Money

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-302 - Bond Payable to State; Deposit; Form of Bond; Penalty of Blanket Bond

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-303 - Irrevocable Letters of Credit

(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
(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 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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-304 - Sales Exempt From Subtitle

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-305 - Penalties; Unfair or Deceptive Trade Practices

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 3 - Deposits on New Homes › Section 10-306 - Disclosure Forms

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 4 - Recorded Land Contracts › Section 10-401 - Limitation on Enforcement of Recorded Land Contract

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 4 - Recorded Land Contracts › Section 10-402 - Recorded Options as Notice

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 5 - Custom Home Protection Act › Section 10-501 - Definitions

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 5 - Custom Home Protection Act › Section 10-502 - Payments to Custom Home Builders Held in Trust

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 5 - Custom Home Protection Act › Section 10-503 - Payments to Custom Home Builders Held in Trust -- Presumption of Appropriation in Violation of Trust

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 5 - Custom Home Protection Act › Section 10-505 - Contracts Between Custom Home Builders and Buyers

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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 5 - Custom Home Protection Act › Section 10-507 - Violations

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 6 - New Home Warranties › Section 10-602 - Disclosure by Builders Generally

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 6 - New Home Warranties › Section 10-603 - Homes Not Covered by Warranty; Disclosure by Builders; Acknowledgment; Right of Rescission by Owner

(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.
2023 Maryland Statutes › Real Property › Title 10 - Sales of Property › Subtitle 6 - New Home Warranties › Section 10-605 - Notice to Purchaser of Home Covered by Warranty

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.”