Ch. 827                            MARVIN MAN DEL, Governor                                   1699

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 1973.

Approved May 24, 1973.

CHAPTER 828
(House Bill 1002)

AN ACT to add new Section 11-127 to Article 21 of the Annotated Code of
Maryland (1972 Interim Supplement), "Real Property," title "XI. Horizontal
Property Act," to follow immediately after Section 11-126 thereof; to require
developers or. sellers of condominiums, if they obligate purchasers of
condominium units to deposit with them any sum of money prior to the
completion and conveyance of the purchased condominium units, to place those
moneys in I Ian account with the registry of the circuit court of the county in
which the condominium is located]] escrow accounts segregated from all other
funds of the developer or seller: to provide for the disbursement of these
deposits held in [[an account]] these accounts [[of the registry of the court,
upon court order,]] when certain events occur; and to provide for penalties for
violations of this Act; and relating generally to deposits by purchasers of new
condominium units.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 11-127 be and it is hereby added to Article 21 of
the Annotated Code of Maryland (1972 Interim Supplement), "Real Property,"
title "XI. Horizontal Property Act," to follow immediately after Section 11-126
thereof, and to read as follows:

11-127.

(A)   IF THE PURCHASER OF A CONDOMINIUM UNIT, WHICH IS
LOCATED IN THE STATE AND NOT COMPLETED AT THE TIME OF
CONTRACTING THE SALE, IS OBLIGATED BY THE DEVELOPER OR
SELLER TO DEPOSIT ANY SUM OF MONEY WITH THE DEVELOPER
OR SELLER PRIOR TO THE COMPLETION AND CONVEYANCE OF
THE CONDOMINIUM UNIT, THE DEVELOPER OR SELLER SHALL,
UPON RECEIPT OF THIS SUM OF MONEY, DEPOSIT IT IN AN
[[ACCOUNT WITH THE REGISTRY OF THE CIRCUIT COURT OF THE
COUNTY IN WHICH THE CONDOMINIUM IS LOCATED]] ESCROW
ACCOUNT SEGREGATED FROM ALL OTHER FUNDS OF THE
DEVELOPER OR SELLER TO BE HELD TO ASSURE THE RETURN OF
THE SUM OF MONEY TO THE PURCHASER IN THE EVENT THE
PURCHASER BECOMES ENTITLED TO A RETURN OF THIS SUM OF
MONEY.

(B)   A PURCHASER'S DEPOSIT PLACED BY THE DEVELOPER OR
SELLER IN AN [[ACCOUNT WITH THE REGISTRY OF THE COURT
SHALL BE RELEASED AND DISBURSED FROM THE ACCOUNT, UPON
PROPER COURT ORDER,]] ESCROW ACCOUNT IN ACCORDANCE
WITH THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION
SHALL BE RELEASED AND DISBURSED FROM THE ACCOUNT ONLY
WHEN ONE OF THE FOLLOWING EVENTS OCCURS: