WILLIAM DONALD SCHAEFER, Governor                    Ch. 520

(2)  Paying documented claims of persons who have
furnished labor or material, including fuel, in connection with
the [custom] home contract for which the funds were advanced;

(3)  Paying a sum of money to the [custom home]
builder if the buyer forfeits the sum under the terms of the
contract of sale; or

(4)  Final payment upon the issuance of an occupancy
permit or possession.

(c)  In lieu of the escrow account required under subsection
(a) of this section, a [custom home] builder may establish
and maintain a separate escrow account for each [custom] home
contract for which he receives consideration that he would be
required to place into escrow under subsection (a). Each
individual escrow account shall require the signature of both the
buyer and the [custom home] builder for any withdrawal.
Deposits and withdrawals to and from this account shall be
governed by the requirements of subsections (a) and (b) of this
section.

(d)  (1) In lieu of the escrow accounts required under
subsection (a) or (c) of this section, a [custom home]
builder may obtain and maintain a corporate surety bond in the
form and in the amounts required of a vendor or builder under §
10-302 of this title.

(2)  The surety bond obtained shall be conditioned on
the return of the sum to the buyer in the event the buyer becomes
entitled to the return of the money.

(3)  The [custom home] builder shall maintain the
surety bond until the [custom home] builder complies with §
9-114 of this article.

(E) THIS SECTION DOES NOT APPLY TO:

(1) A CUSTOM HOME CONTRACT FINANCED BY A MORTGAGE
LOAN ISSUED BY A FEDERALLY CHARTERED FINANCIAL INSTITUTION OR A
FINANCIAL INSTITUTION REGULATED UNDER THE FINANCIAL INSTITUTIONS
ARTICLE; AND

(2) 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.

10-505.

Every [custom] home contract between a [custom home] builder

and the buyer must be in writing. The [custom home] contract

shall:

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