Ch. 223 LAWS OF MARYLAND

(3) "STRUCTURAL DEFECT" DOES NOT INCLUDE DAMAGE
CAUSED BY MOVEMENT OF THE SOIL:

(I) RESULTING FROM A FLOOD OR EARTHQUAKE; OR

(II) FOR WHICH COMPENSATION IS OTHERWISE HAS BEEN
PROVIDED BY LAW OR INSURANCE.

(P) "WARRANTY DATE" MEANS THE FIRST DAY THAT THE OWNER
OCCUPIES THE NEW HOME, SETTLES ON THE NEW HOME, MAKES THE
FINAL CONTRACT PAYMENT ON THE NEW HOME, OR OBTAINS AN
OCCUPANCY PERMIT FOR THE NEW HOME IF THE HOME IS BUILT ON THE
OWNER'S PROPERTY, WHICHEVER IS EARLIER.

10-602.

(A) PRIOR TO ENTERING INTO A CONTRACT FOR SALE OR
CONSTRUCTION OF A NEW HOME, THE BUILDER SHALL DISCLOSE IN
WRITING TO THE OWNER WHETHER:

(1) THE BUILDER PARTICIPATES IN A NEW HOME WARRANTY
SECURITY PLAN THROUGH WHICH:

(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

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