MARVIN MANDEL, Governor                                    383

ON THE SUBSEQUENT SALE OF THE IMPROVEMENT      BY        THE

INTERMEDIATE PURCHASER AS IF THE SUBSEQUENT SALE   HAD   BEEN

EFFECTUATED BY THE VENDOR WITHOUT REGARD     TO      THE
INTERVENING GRANT.

REVISOR'S NOTE: This section presently appears as
Art. 21, §10-205 of the Code. The only
changes are in style.

SUBTITLE 3. DEPOSITS ON NEW HOMES.

10-301. ESCROW ACCOUNT AND SURETY BOND TO BE MAINTAINED
BY VENDOR RECEIVING DEPOSIT.

(A)   WHEN ESCROW ACCOUNT OR SURETY BOND REQUIRED.

IF THE VENDOR OR BUILDER, IN CONNECTION WITH THE
SALE AND PURCHASE OF A NEW SINGLE FAMILY RESIDENTIAL UNIT
WHICH IS NOT COMPLETED AT THE TIME OF CONTRACTING THE
SALE, OBLIGATES THE PURCHASER TO PAY AND THE VENDOR OR
BUILDER RECEIVES ANY SUM OF MONEY PRIOR TO COMPLETION OF
THE UNIT AND GRANT OF THE REALTY TO THE PURCHASER, THE
BUILDER OR VENDOR SHALL:

(1)   DEPOSIT OR HOLD THE SUM IN AN ESCROW
ACCOUNT SEGREGATED FROM ALL OTHER FUNDS OF THE VENDOR OR
PURCHASER TO ASSURE THE RETURN OF THE SUM TO THE
PURCHASER IN THE EVENT THE PURCHASER BECOMES ENTITLED TO
A RETURN OF THE SUM; OR

(2)   OBTAIN AND MAINTAIN A CORPORATE SURETY
BOND IN THE FORM AND IN THE AMOUNTS SET FORTH IN §10-302
CONDITIONED ON THE RETURN OF THE SUM TO THE PURCHASER IN
THE EVENT THE PURCHASER [[BEOMES]] BECOMES ENTITLED TO
THE RETURN OF THE MONEY.

(B)   ESCROW ACCOUNT OR SURETY BOND MAINTAINED UNTIL
CERTAIN EVENTS.

THE VENDOR OR BUILDER SHALL MAINTAIN THE ESCROW
ACCOUNT OR SURETY BOND UNTIL THE HAPPENING OF THE EARLIER
OF:

(1)   THE GRANTING OF A DEED TO THE [["REALTY]]
PROPERTY ON WHICH THE RESIDENTIAL UNIT IS LOCATED TO THE
PURCHASER;

(2)   THE RETURN OF THE SUM OF MONEY TO THE
PURCHASER; OR

(3)     THE FORFEITURE OF THE SUM BY THE
PURCHASER, UNDER THE TERMS OF THE CONTRACT OF SALE
RELATING TO THE PURCHASE OF THE RESIDENTIAL UNIT.