Code of Maryland Regulations › Title 11 - DEPARTMENT OF TRANSPORTATION › Subtitle 12 - MOTOR VEHICLE ADMINISTRATION-LICENSING OF BUSINESSES AND OCCUPATION › Chapter 11.12.01 - Dealers and Salesmen › Section 11.12.01.15 - Vehicle Sales Contracts

Current through Register Vol. 51, No. 14, July 12, 2024
A.
				Contracts. A vehicle sales contract or agreement shall be evidenced by an
				instrument in writing containing all of the agreements of the parties. It shall
				be signed by all parties before the seller delivers to the buyer the vehicle
				covered by the agreement.
B. Copy
				of Instrument. At the time the buyer signs the instrument, the seller shall
				deliver to him an exact copy of it. Until the buyer signs the instrument and
				receives a copy of it signed by the seller, the buyer or prospective buyer has
				an unconditional right to cancel the instrument or order and to receive
				immediate refund of all down payments or deposits made on account of, or in
				contemplation of, the agreement or order.
C. Terms of Down Payment.
(1) If, under any vehicle sales contract or
				agreement, the buyer is required to make one or more payments to the seller in
				addition to any down payments made at the time of the execution of the
				instrument before the seller is obligated to deliver the goods sold, then the
				buyer at any time before delivery or tender of the goods by the seller, may
				cancel the instrument. Thereupon, notwithstanding any provisions of the
				instrument, the seller shall be obligated to refund to the buyer, within 10
				days after notice of the cancellation, an amount equal to at least 90 percent
				of all payments made by the buyer under the instrument, including any down
				payment. If the seller has placed an order for special optional equipment,
				paint, or similar items, or if, at the request of the buyer, the dealer has
				modified a vehicle which he has in stock, and the vehicle sales contract has
				been properly signed by all parties attesting to this fact, if the buyer
				subsequently cancels the contract before delivery or tender of the vehicle, the
				seller shall refund the down payment within 10 days after notice of the
				cancellation, less reasonable expenses incurred in the ordering of or the
				modification of the vehicle. The contract shall clearly disclose that the
				dealer may retain a portion of the deposit or down payment to cover any
				reasonable expenses incurred as a result of the cancellation of the contract.
				When a portion of the down payment or deposit is retained by the seller, the
				seller shall furnish the buyer with an itemized list reflecting all expenses
				incurred as a result of the cancellation of the contract. In disputed cases,
				the Administration shall decide whether the expenses claimed by the seller are
				reasonable.
(2) If, under a vehicle
				sales contract or agreement, a down payment is made at the time of its
				execution and the buyer thereby becomes entitled to delivery of the goods
				before making further payments, then, if the buyer refuses to accept delivery
				of the goods in accordance with the instrument, all or part of the down payment
				may be forfeited to the extent provided in the instrument.