WILLIAM DONALD SCHAEFER, Governor Ch. 223

THE NAME OF THE NEW HOME WARRANTY SECURITY PLAN
IN WHICH YOUR BUILDER IS CURRENTLY A PARTICIPANT IS
........ YOU ARE STRONGLY ENCOURAGED TO CALL THE NEW

HOME WARRANTY SECURITY PLAN AT ....... TO VERIFY (I) THAT

YOUR BUILDER IS IN GOOD STANDING WITH THIS COMPANY,
AND (II) THAT YOUR NEW HOME WILL BE COVERED BY A
WARRANTY FROM THIS COMPANY.

IF THE BUILDER IS NOT A PARTICIPANT IN GOOD STANDING
WITH THIS COMPANY ON THE DATE OF THIS CONTRACT, OR IF
THE NEW HOME HAS NOT BEEN REGISTERED IN THE PLAN ON
OR BEFORE THE WARRANTY DATE, THEN IT IS A MATERIAL
BREACH OF THE CONTRACT AND YOU ARE ENTITLED TO
WHATEVER REMEDIES ARE PROVIDED BY LAW, INCLUDING,
BUT NOT LIMITED TO, RESCISSION OR CANCELLATION OF THIS
CONTRACT AND, EXCEPT IN THE CASE OF A CONSTRUCTION
CONTRACT FOR A NEW HOME BUILT ON YOUR OWN PROPERTY,
AND A REFUND OF ANY MONEY PAID TO THE BUILDER FOR
YOUR NEW HOME.

ON THE DAY THAT YOU FIRST OCCUPY THE NEW HOME,
SETTLE ON THE NEW HOME, MAKE THE FINAL PAYMENT TO
THE BUILDER ON YOUR NEW HOME, OR OBTAIN AN
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;

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