Ch. 529.

LAWS OF MARYLAND

(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 AN 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.

10-506.

(a) (1) A custom home builder must include in each custom
home contract a' disclosure concerning the buyer's risk under
mechanics' lien laws.

(2)  The disclosure concerning the buyer's risk under
mechanics' lien laws 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 disclosure required under paragraph (1) of
this subsection shall state:

"Buyer's risk under mechanics' lien laws unless you
take certain steps to protect your interests, a subcontractor,
materialman, or supplier may become entitled to place a lien
against your property in order to ensure payment to him for
services rendered or goods delivered on or to your home. This
could mean that your home could be sold to satisfy the lien.

You may protect against such a possibility by:

(1) Promptly paying incremental amounts due under the
contract and requiring an express accounting from your contractor
of the goods and/or services that are covered by each payment;
and

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