Ch. 520

LAWS OF MARYLAND

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

Article - Real Property

10-304.

The provisions of this subtitle do not apply to[:

(1) A sale by a vendor or builder who, from the time
of the contract of sale until completion and grant of the
residential unit, has outstanding fewer than ten contracts of
sale of single-family residential units to be constructed, for
which he has accepted or contractually is entitled to receive
sums of money in the nature of deposits, escrow money, or binder
money; and

(2) A] A sale by or through a licensed real estate
broker in connection with which all sums of money in the . nature
of deposits, escrow money, or binder money are paid to a broker
to be held in the escrow account of the broker.

Subtitle 5. NEW AND Custom Home Protection Act

10-501.

(a) In this subtitle the following words have the meanings
indicated.

[(b) "Buyer" means any person who seeks or enters into a
contract for the construction of a custom home.

(c) "Custom home" means a single family dwelling

constructed for the buyer's residence on land currently or
previously owned by the buyer.

(d) "Custom home builder" means any person who seeks,
enters into, or performs custom home contracts.

(e) "Custom home contract" means any contract entered into
with the buyer, with a value equal to or greater than $20,000, to
furnish labor and material in connection with the construction,
erection, or completion of a custom home. A custom home contract
does not mean an agreement for work to be done by a licensed home
improvement contractor and subject to the provisions of Maryland
Home Improvement Law.

(f) "Deposit" means any sum paid to a custom home builder
at the time of the execution of a custom home contract.

(g) "Draw schedule" means a form that sets forth with
particularity the sum to which the custom home builder shall be
entitled as progress payment on the custom home contract after

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