Ch. 520

LAWS OF MARYLAND

in which I or any business entity in which I had an ownership
interest in excess of 51 percent have:

(1)  Within the past 3 years been adjudged by a court
of competent jurisdiction in Maryland to have failed to comply
with any provision of the Custom Home Protection Act or the
Consumer Protection Act as it applies to the construction of a
new home.

(2)  Been adjudged liable for a currently unsatisfied
final judgment in connection with a [custom] home contract.

Adverse adjudication(s):

( ).
Unsatisfied judgment(s):

( )."

(c) (1) A [custom home] builder shall include in each
[custom] home contract an escrow account requirement notice
under paragraph (3) of this subsection.

(2)  The escrow account requirement notice under
paragraph (3) of this subsection shall:

(i) Be on a separate page of the [custom]
home contract; and

(ii) Be separately signed by the buyer.

(3)  The escrow account requirement notice required
under paragraph (1) of this subsection shall state:

"ESCROW ACCOUNT REQUIREMENT                       

UNLESS YOUR CONTRACT IS FINANCED BY A MORTGAGE ISSUED BY A
FEDERALLY CHARTERED FINANCIAL INSTITUTION OR A FINANCIAL
INSTITUTION SUPERVISED UNDER THE FINANCIAL INSTITUTIONS ARTICLE
OF THE ANNOTATED CODE OF MARYLAND, OR UNLESS ALL DEPOSITS, ESCROW
MONEY, BINDER MONEY, OR ANY OTHER MONEY PAID IN ADVANCE, OR IS
PAID TO THE LICENSED REAL ESTATE BROKER, TO BE HELD IN THE ESCROW
ACCOUNT OF THE BROKER, Maryland law requires that all
consideration exceeding 5 percent of the total contract price
which is paid by a buyer to a [custom home] builder in
advance of the completion of the labor, or the receipt of the
materials for which the consideration is paid shall be deposited
in an escrow account and paid out of that account only for
certain purposes specified by law. To ensure this, the law
requires that your builder may only accept such payment in the
name of the escrow account. Thus, you should make out your, check
to "(name of builder), escrow account". Records of payments out
of this account must be carefully maintained by your builder, and
the builder must permit you reasonable access to escrow account
records. Your builder, however, may choose to establish a

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