| If there's a load limit on construction contracts, | | | | Warranty Act, Code of Maryland Regulations § |
| Maryland must be getting close. The legislators in | | | | 09.01.09.01 to 09.01.09.09. You have to disclose |
| Annapolis require 21 distinct notices and | | | | either participation or non-participation in a |
| disclosures in custom home building contracts. As | | | | warranty plan. If you participate, the buyer may |
| a class, buyers of custom homes in Maryland | | | | have the choice to opt out. If that's the case, the |
| must be among the best protected anywhere. | | | | contract has to include a waiver of coverage |
| Omitting any of these disclosures carries heavy | | | | notice as well as a blank rescission of waiver |
| consequences. More on that later. | | | | form. Whether you participate in a warranty plan |
| If you're a custom home builder in Maryland, | | | | or don't participate, the contract must include a |
| check your contract against this list of required | | | | statement about any known hazardous or |
| notices. | | | | regulated materials on site. |
| · A draw (payment) schedule | | | | It pays to be careful about compliance. Omission |
| · The names of the primary subcontractors | | | | of any disclosure or notice required by the New |
| · Notice on change orders · Statement of | | | | Home Warranties Act can result in a fine of up to |
| warranty coverage (in bold) | | | | $50,000 and two years in prison. Violation of the |
| · Disclosure on payment of subs & suppliers | | | | Act is also treated as an unfair and deceptive |
| · Waiver of lien notice · Mechanics' lien laws | | | | trade practice under Maryland's Consumer |
| notice | | | | Protection Act, giving an owner the right to sue |
| · Certification of no judgments or violations | | | | for damages and collect attorney fees. |
| · Escrow account notice | | | | Failure to include an accurate "Certification by |
| · Sales representative notice | | | | Builder" statement in a contract is a felony and |
| But that's just the beginning. Required notices and | | | | makes the contractor eligible for a fine up to |
| disclosures include the following: | | | | $10,000 and 15 years in prison. Omission of any |
| · The builder's registration number. | | | | disclosure required by Real Property Code § |
| · A commitment that construction will comply | | | | 14-117(j) or Maryland's Custom Home Protection |
| with the building code. | | | | Act is a misdemeanor punishable by a fine of up |
| · Identification of the performance standards | | | | to $1,000 and a year in prison. If omitting a |
| that apply (NAHB or HUD). | | | | disclosure or notice results in a financial loss to a |
| · A buyer's right to receive the Home Builder | | | | home buyer, a court may order the defendant to |
| Registration Act pamphlet. | | | | stop working as a construction contractor. |
| · A notice of the maximum loan interest rate | | | | Violation of the Custom Home Protection Act |
| acceptable to the buyer. | | | | gives a home owner the right to sue for |
| And then we get to Maryland's New Home | | | | damages and collect attorney fees. |