VETOES

(I) THE BUILDER MUST PROVIDE THE OWNER WITH A
NEW HOME WARRANTY; OR

(II) THE BUILDER MAY PROVIDE A NEW HOME
WARRANTY TO THE OWNER AT THE OWNER'S OPTION; OR

(2) THE BUILDER DOES NOT PARTICIPATE IN A NEW HOME
WARRANTY SECURITY PLAN.

(B) THE DISCLOSURE WILL BE MADE ON A FORM APPROVED BY
THE SECRETARY.

10-603.

(A) IF THE BUILDER DOES NOT PARTICIPATE IN A NEW HOME
WARRANTY SECURITY PLAN:

(1) THE BUILDER MUST MAKE A DISCLOSURE CONTAINING AN
EXPLANATION IN 12 POINT TYPE THAT:

(I) THE OWNER SHOULD BE AWARE THAT BUILDERS OF
NEW HOMES IN THE STATE OF MARYLAND ARE NOT REQUIRED TO BE
LICENSED BY THE STATE AND ARE NOT LICENSED IN MOST LOCAL
JURISDICTIONS; AND

(II) WITHOUT A NEW HOME WARRANTY OR OTHER
EXPRESS WARRANTIES, THE OWNER MAY BE AFFORDED ONLY CERTAIN
LIMITED IMPLIED WARRANTIES AS ARE PROVIDED BY LAW;

(2) THE OWNER SHALL ACKNOWLEDGE IN WRITING THAT THE
OWNER UNDERSTANDS THAT THE BUILDER DOES NOT PARTICIPATE IN
A NEW HOME WARRANTY SECURITY PLAN AND THAT THE OWNER HAS
READ AND UNDERSTOOD THE DISCLOSURE PURSUANT TO PARAGRAPH
(1) OF THIS SUBSECTION; AND

(3) ANY PURCHASE OR CONSTRUCTION CONTRACT ENTERED
INTO WHICH DOES NOT CONTAIN THE ACKNOWLEDGMENT REQUIRED
BY SUBSECTION (2) OF THIS SECTION IS VOID AB INITIO VOIDABLE BY
THE OWNER.

(B) (1) AN OWNER WHO HAS MADE THE ACKNOWLEDGMENT
DESCRIBED IN SUBSECTION (A)(2) OF THIS SECTION MAY RESCIND THE
CONTRACT WITHIN 5 WORKING DAYS FROM THE DATE OF THE
CONTRACT BY PROVIDING THE BUILDER WITH WRITTEN NOTICE OF THE
OWNER'S RESCISSION OF THE CONTRACT; AND

(2) UPON RESCISSION, THE OWNER SHALL BE ENTITLED TO A
REFUND OF ANY MONEY PAID TO THE BUILDER FOR THE NEW HOME.

10-604.

(A) (1) EXCEPT FOR COVERAGE EXCLUDED UNDER PARAGRAPH

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