WILLIAM DONALD SCHAEFER, Governor

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."

10-606.

(A) A NEW HOME WARRANTY SECURITY PLAN SHALL:

(1) PROVIDE FOR THE PAYMENT OF CLAIMS AGAINST A
BUILDER FOR DEFECTS WARRANTED UNDER THIS SUBTITLE;

(2) BE OPERATED BY A CORPORATION, PARTNERSHIP, OR
OTHER LEGAL ENTITY AUTHORIZED TO DO BUSINESS IN MARYLAND;

(3) DEMONSTRATE TO THE SECRETARY THAT THE PLAN WILL
MAINTAIN FINANCIAL SECURITY TO COVER THE TOTAL NUMBER OF
CLAIMS THAT THE PLAN REASONABLY ANTICIPATES WILL BE FILED
AGAINST PARTICIPATING BUILDERS;

(4) FILE WITH THE SECRETARY A SURETY BOND OR AN
IRREVOCABLE LETTER OF CREDIT FROM A FEDERALLY INSURED
FINANCIAL INSTITUTION IN AN AMOUNT SET BY THE SECRETARY, BUT
NOT LESS THAN $100,000, FOR THE BENEFIT OF OWNERS INJURED BY THE
FAILURE OF THE NEW HOME WARRANTY SECURITY PLAN TO PAY
CLAIMS AS REQUIRED UNDER THIS SUBTITLE;

(5) PROVIDE WITHIN THE NEW HOME WARRANTY
DOCUMENTS THE PERFORMANCE STANDARDS THAT DESCRIBE THE
BUILDER'S OBLIGATIONS FOR DEFECTS WARRANTED UNDER THIS
SUBTITLE;

(6) PROVIDE FOR THE MEDIATION OF DISPUTES BETWEEN AN
OWNER AND A BUILDER BEFORE A CLAIM WILL BE PAID BY THE
BUILDER'S NEW HOME WARRANTY SECURITY PLAN; AND

(7) MEET ANY OTHER REQUIREMENTS DETERMINED BY THE
SECRETARY AND BE APPROVED BY THE SECRETARY.

(B) (1) THE SECRETARY MAY REVOKE OR SUSPEND APPROVAL
FOR A NEW HOME WARRANTY SECURITY PLAN IF THE SECRETARY
DETERMINES THAT THE PLAN:

- 3085 -