Code of Maryland Regulations › Title 09 - MARYLAND DEPARTMENT OF LABOR › Subtitle 01 - OFFICE OF THE SECRETARY › Chapter 09.01.09 - New Home Warranty Security Plans › Section 09.01.09.03 - Disclosure Required by Builder Leaving Decision to Participate in New Home Warranty Security Plan to the Buyer

Current through Register Vol. 51, No. 14, July 12, 2024
A. The disclosure shall be printed in at
				least 12-point type.
B. The
				disclosure shall read as follows:
Maryland law allows a builder who participates in a new home
				  warranty plan to offer the warranty to the buyer at the buyer's option. A
				  builder who proceeds in this fashion must make the following disclosure as part
				  of the contract for sale or construction of a new home.
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 unless they build new homes exclusively in Montgomery County.
				  In that case, they are required to register with the Montgomery County Office
				  of Consumer Affairs.
I have decided to allow the buyer the option of obtaining a
				  new home warranty. If the buyer decides not to have the builder obtain the new
				  home warranty, the buyer may be afforded only certain limited warranties as
				  provided by law.
The buyer may decide to waive the right to a warranty, if
				  this decision is solely the decision of the buyer. A builder cannot ask a buyer
				  to sign a waiver of the right to have a warranty. A builder cannot refuse to
				  build a new home for a buyer because the buyer decided to ask for a warranty.
				  If the buyer asks for a new home warranty, the builder must provide the
				  warranty.
The nature and extent of the warranty that would be provided
				  to the buyer is as follows
____________________________ ______________________________
				  Name of Security Plan Phone ____________________________ Cost of Warranty
				  Plan
The plan provides the following coverage:
Minimum warranty coverage -
One year-free from any defects in material and
				  workmanship
Two years-free from any defect in the electrical, plumbing,
				  heating, cooling, and ventilating systems, except that the following
				  appliances, fixtures, and items of equipment are only covered for the length
				  and scope of the warranty offered by the manufacturer:
Item Length of Warranty
				  ____________________________________________________
				  ____________________________________________________
Five years-free from any structural defects
Other express warranties provided:
____________________________________________________
				  ____________________________________________________
Items excluded under this warranty plan:
Damage to real property that is not part of the home covered
				  by the warranty or that is not included in the purchase price.
Bodily injury or damage to personal property.
Any defect in material supplied or work performed by anyone
				  other than the builder or the builder's employees, agents, or
				  subcontractors.
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.
Normal wear and tear or normal deterioration.
Insect damage, except where the builder has failed to use
				  proper materials or construction methods designed to prevent insect
				  infestation.
Any loss or damage that arises while the home is being used
				  primarily for nonresidential purposes.
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 the builder's employees, agents, or subcontractors.
Any damage to the extent it is caused or made worse by
				  changes in grading of the ground by anyone other than the builder, the
				  builder's employees, agents, or subcontractors.
Any loss or damage caused by acts of God.
I must provide a copy of the warranty plan to the buyer at
				  the time of the contract for sale or construction of the new home. To the
				  extent that the warranty documents provide lesser protection to the buyer than
				  State law, State law prevails.
Maryland law requires me to either disclose any actual
				  knowledge that I have of any hazardous or regulated materials which are present
				  on the site of the new home or to state that I am making no representations or
				  warranties as to whether any hazardous or regulated materials are present on
				  the site of the new home.
__ I have actual knowledge that the following hazardous or
				  regulated materials are present on the site of the new home:
__ Asbestos __ Lead-Based Paint __ Radon __ Methane __
				  Underground Storage Tanks __ Licensed Landfills __ Unlicensed Landfills __
				  Licensed Rubble Fills __ Unlicensed Rubble Fills
Other Hazardous or Regulated Materials and Other
				  Environmental Hazards Present on the Site:
____________________________________________________
				  ____________________________________________________
OR
__ I have no actual knowledge of any hazardous or regulated
				  material present on the site of the new home.
OR
__ I am making no representations or warranties as to whether
				  there is any hazardous or regulated material on the site of the new
				  home.
The buyer has read and understands the above
				  disclosure.
______________________________ ______________________________
				  Signature of Buyer Date
______________________________ ______________________________
				  Acknowledgement of Builder Date
Waiver of Warranty Right
The buyer has read and understands the above information and
				  wishes to waive the right to a new home warranty. The buyer further understands
				  that the buyer can change the buyer's mind and can request a warranty by
				  completing the rescission clause at the end of this notice by delivering it to
				  the builder, within 3 working days from the date the buyer signed this
				  contract.
______________________________ ______________________________
				  Signature of Buyer Date
Rescission Clause for Waiver of Warranty Right
The buyer has decided to rescind the waiver or warranty right
				  and to obtain the warranty coverage described in detail in the contract. The
				  buyer understands that the cost to obtain the warranty will be
				  $_________.
The buyer requests that the builder register the new home
				  located, or to be built, at
_______________________________________________________________________ Street
				  Address City Zip Code
with the builder's new home warranty security plan.
______________________________ ______________________________
				  Signature of Buyer Date