MARVIN MANDEL, Governor

3889

(M) "Soil Movement" means subsidence, expansion or
lateral movement of the soil (excluding flood and
earthquake).

10-2A02.

(A)    Prior to the issuance of a building permit to
construct a new dwelling, single family, two family,
condominium or cooperative, the builder shall obtain a
certificate of endorsement or some other similar document
signed by an insurance company licensed to do business in
the State of Maryland as approved by the Insurance
Department. These documents shall state that the builder
will be covered by the insurance company for the full
purchase price of the dwelling for a period of five years
subject to the conditions of the Home Warranty Agreement.

(B)     In addition to those ordinances required by
any local jurisdiction's code relating to building,
electricity, plumbing, fire and heating codes the
warranty will require compliance with Quality Standards
hereinafter mentioned.

10-2A03.

(A)      A warranty agreement guaranteed by a surety
company shall be issued to the purchaser/owner as
provided in conformity with this Article. A copy of the
warranty agreement must be presented to a local
jurisdiction's Department of Inspections and Permits
prior to the issuance of a Certificate of Occupancy.

(B)     The Warranty Agreement shall contain the
following:

This agreement must be entered into only by
(1) the builder of the dwelling and (2) the
purchaser/owner of the dwelling. It must not be signed
by the builder unless (a) the builder is the party
conveying title to the purchaser/owner or (b) the builder
is building a dwelling on the purchaser's own land. This
agreement shall be executed only after substantial
completion of the dwelling by the builder and inspection
of the home by the purchaser/owner. This agreement shall
be executed at the time of final settlement on sale of
the dwelling, or within 30 days after occupancy,
whichever occurs first, except that for dwellings
accepted under an agreement granting the purchaser an
option to purchase, it shall be executed at the time of
final settlement. The builder shall concurrently with the
execution of this agreement deliver to the purchaser a
descriptive booklet containing general information with
respect to the warranty and the benefits available to
purchasers. This agreement should be executed in