2020 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.”

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