|
Ch. 529 LAWS OF MARYLAND
(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
FINANCIAL OR FIDUCIARY 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
separate escrow account for your project which will require your
signature for any withdrawals."
[10-508.
This subtitle does not apply to:
- 2432 -
|
