WILLIAM DONALD SCHAEFER, Governor Ch. 223

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
(2) OF THIS SUBSECTION, A NEW HOME WARRANTY PROVIDED UNDER A
NEW HOME WARRANTY SECURITY PLAN SHALL WARRANT AT A
MINIMUM THAT:

(I) FOR 1 YEAR, BEGINNING ON THE WARRANTY DATE,
THE NEW HOME IS FREE FROM ANY DEFECTS IN MATERIALS AND
WORKMANSHIP;

(II) FOR 2 YEARS, BEGINNING ON THE WARRANTY DATE,
THE NEW HOME IS FREE FROM ANY DEFECT IN THE ELECTRICAL,
PLUMBING, HEATING, COOLING, AND VENTILATING SYSTEMS, EXCEPT
THAT IN THE CASE OF APPLIANCES, FIXTURES AND ITEMS OF
EQUIPMENT, THE WARRANTY MAY NOT EXCEED THE LENGTH AND
SCOPE OF THE WARRANTY OFFERED BY THE MANUFACTURER; AND

(III) FOR 5 YEARS, BEGINNING ON THE WARRANTY DATE,
THE NEW HOME IS FREE FROM ANY STRUCTURAL DEFECT.

(2) A NEW HOME WARRANTY PROVIDED UNDER A NEW HOME
WARRANTY SECURITY PLAN MAY EXCLUDE THE FOLLOWING:

(I) DAMAGE TO REAL PROPERTY THAT IS NOT PART OF
THE HOME COVERED BY THE WARRANTY AND OR THAT IS NOT
INCLUDED IN THE PURCHASE PRICE OF THE HOME;

(II) BODILY INJURY OR DAMAGE TO PERSONAL
PROPERTY;

(III) ANY DEFECT IN MATERIALS SUPPLIED OR WORK

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