HARRY HUGHES, Governor

3225

CHAPTER 710

(House Bill 1606)

AN ACT concerning

Unfair or Deceptive Trade Practices - Realty -
Consequential Damages

FOR the purpose of establishing that it is an unfair or deceptive
trade practice for a seller of consumer realty to use a
contract for the sale of single family residential realty
that contains a clause that limits the buyer's right to
obtain consequential damages under certain circumstances.

BY repealing and reenacting, with amendments,.

Article - Commercial Law

Section 13-301(12), (13), and (14)

Annotated Code of Maryland

(1983 Replacement Volume and 1984 Supplement)

BY adding to

Article - Commercial Law

Section 13-301(13)

Annotated Code of Maryland

(1983 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

13-301.

Unfair or deceptive trade practices include any:

(12)  Use of a contract related to a consumer
transaction which contains a confessed judgment clause that
waives the consumer's right to assert a legal defense to an
action; [or]

(13)  USE BY A SELLER, WHO IS IN THE BUSINESS OF
SELLING CONSUMER REALTY, OF A CONTRACT RELATED TO THE SALE OF
SINGLE FAMILY RESIDENTIAL CONSUMER REALTY, INCLUDING CONDOMINIUMS
AND TOWNHOUSES, THAT CONTAINS A CLAUSE LIMITING OR PRECLUDING THE
BUYER'S RIGHT TO OBTAIN CONSEQUENTIAL DAMAGES AS A RESULT OF THE
SELLER'S BREACH OR CANCELLATION OF THE CONTRACT;

[(13)] (14) Violation of a provision of: