WILLIAM DONALD SCHAEFER, Governor

2. WAIVING THE RIGHT TO WARRANTY COVERAGE
BY MAKING THE AFFIRMATIVE WAIVER DESCRIBED IN § 10-607 OF THIS
TITLE.

(C) (1) IF THE PURCHASE OR CONSTRUCTION CONTRACT
PROVIDES THAT THE NEW HOME SHALL BE COVERED BY A NEW HOME
WARRANTY UNDER A NEW HOME WARRANTY SECURITY PLAN IT SHALL
CONSTITUTE A MATERIAL BREACH OF THE CONTRACT IF EITHER:

(I) THE BUILDER WAS NOT A PARTICIPANT IN GOOD
STANDING ON THE DATE OF THE CONTRACT WITH A NEW HOME
WARRANTY SECURITY PLAN THAT SATISFIES THE REQUIREMENTS OF §
10-606(A) OF THIS TITLE; OR

(II) THE NEW HOME HAS NOT BEEN REGISTERED IN THE
PLAN ON OR BEFORE THE WARRANTY DATE.

(2) IF THERE HAS BEEN A MATERIAL BREACH OF THE
CONTRACT, THE OWNER SHALL BE ENTITLED TO WHATEVER REMEDIES
ARE PROVIDED BY LAW INCLUDING, BUT NOT LIMITED TO:

(I) RESCISSION OF THE CONTRACT; AND

(II) EXCEPT IN THE CASE OF A CONSTRUCTION CONTRACT
FOR A NEW HOME BUILT ON THE OWNER'S PROPERTY, A REFUND OF
ANY MONEY PAID TO THE BUILDER FOR THE NEW HOME.

(D) (1) THE BUILDER SHALL NOTIFY THE NEW HOME WARRANTY
SECURITY PLAN OF EACH NEW HOME BEING CONSTRUCTED BY THE
BUILDER ON THE EARLIER OF THE DATE OF THE PURCHASE OR
CONSTRUCTION CONTRACT OR THE START OF CONSTRUCTION OF THE
NEW HOME.

(2) UPON RECEIPT OF NOTIFICATION BY THE BUILDER AS
REQUIRED IN SUBSECTION (1) OF THIS SECTION, THE NEW HOME SHALL
BE ELIGIBLE FOR REGISTRATION IN THE BUILDER'S NEW HOME
WARRANTY SECURITY PLAN.

(E) (1) UPON ENROLLMENT REGISTRATION OF THE NEW HOME IN
THE NEW HOME WARRANTY SECURITY PLAN, WARRANTY COVERAGE
WHICH HAS NOT BEEN WAIVED BY THE OWNER SHALL BE PROVIDED
BEGINNING ON THE WARRANTY DATE FOR THE NEW HOME
CONSTRUCTED BY THE BUILDER, PROVIDED THAT THE BUILDER WAS IN
GOOD STANDING WITH THE NEW HOME WARRANTY SECURITY PLAN AT
THE TIME OF THE CONTRACT;

(2) ON THE WARRANTY DATE, THE BUILDER SHALL PROVIDE
THE OWNER WITH EVIDENCE, IN A FORM APPROVED BY THE
SECRETARY THAT THE NEW HOME IS COVERED BY A NEW HOME
WARRANTY THAT MEETS THE REQUIREMENTS OF THIS SUBTITLE; AND

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