1476                            LAWS OF MARYLAND                       CH. 726

41 thereof and to provide that persons undertaking responsibility
for disbursement of funds in real estate conveyances shall furnish
the buyer and seller the original or a copy of a recorded release
CERTAIN EVIDENCE OF THE RECORDING OF RELEASES
OF MORTGAGES AND DEEDS OF TRUST within a certain
period of time; that a court of equity may upon petition order an
audit of the accounts of any person failing to furnish such evidence
of release, and generally relating to real estate settlements in
Maryland.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 42 be and it is hereby added to Article 21 of the
Annotated Code of Maryland (1966 Replacement Volume), title
"Conveyancing," subtitle "Mortgages," to follow immediately after
Section 41 thereof, and to read as follows:

(a)     When a person has undertaken responsibility for the dis-
bursement of funds in connection with the conveyance of title to
real property, it shall be the duty of such person to furnish to the
seller and buyer in the transaction, the original or a photographic,
photostatic or similarly reproduced copy of the recorded release of
any mortgage or deed of trust which such person was obliged to
obtain and record with all or part of the funds to be disbursed
OR, IF SUCH ORIGINAL OR COPY OF A RECORDED RELEASE
IS NOT READILY OBTAINABLE AT THE TIME OF RECORD-
ING, IT SHALL BE SUFFICIENT TO FURNISH THE BUYER
OR SELLER THE ORIGINAL OR A COPY OF THE COURT'S
RECORDATION RECEIPT FOR SUCH RELEASE OR OTHER
CERTIFIED COURT DOCUMENT CLEARLY EVIDENCING THE
RECORDATION OF SUCH RELEASE.

(b)     The original or such copy REQUIRED EVIDENCE of a
recorded release shall be mailed or otherwise delivered to the seller
and buyer within thirty days from the execution DELIVERY of the
deed or deeds conveying title to the real property, except that if the
recording of the release will be delayed beyond the thirty day period
for causes not attributable to the neglect, omission or malfeasance of
the person responsible for the disbursement of funds, a letter explain-
ing the delay shall be mailed or otherwise delivered to the seller and
buyer within the thirty day period, and such person shall furnish to
the seller and buyer the required evidence of the recorded release at
the earliest opportunity thereafter, provided that the person shall
follow the procedure of mailing or otherwise delivering a letter of
explanation each thirty days until the required evidence of a recorded
release is furnished to the buyer and seller.

(c)    If the provisions of subsections (a) and (b) are not com-
plied with by the person responsible for the disbursement of funds,
the seller, buyer or a duly organized bar association of this State,
may petition a Court of Equity to order an audit to be made of the
accounts maintained by such person for funds received in connec-
tion with real estate closing transactions in this State. The petition
shall state concisely the facts showing such non-compliance and
shall be verified. The Court shall upon receipt of such petition issue
an order to the person to show cause within ten days why such
audit should not be conducted. If such cause is not shown, the Court

42.