WILLIAM DONALD SCHAEFER, Governor Ch. 563

BY repealing and reenacting, without amendments,

Article - Real Property

Section 10-302 and 10-304

Annotated Code of Maryland

(1988 Replacement Volume and 1988 Supplement)

BY repealing

Article - Real Property

Section 10-303

Annotated Code of Maryland

(1988 Replacement Volume and 1988 Supplement;

BY adding to

Article - Real Property

Section 10-303 and 10-303.1

Annotated Code of Maryland

(1988 Replacement Volume and 1988 Supplement)

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 13-201 and 13-204

Annotated Code of Maryland

(1983 Replacement Volume and 1988 Supplement)

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

Article - Real Property

10-301.

(a) If, in connection with the sale and purchase of a new
single-family residential unit which is not completed at the time
of contracting the sale, the vendor or builder obligates the
purchaser to pay and the vendor or builder receives any sum of
money before completion of the unit and grant of the realty to
the purchaser, the builder or vendor shall:

(1)  Deposit or hold the sum in an escrow account
segregated from all other funds of the vendor or builder to
assure the return of the sum to the purchaser in the event the
purchaser becomes entitled to a return of the sum; [or]

(2)  Obtain and maintain a corporate surety bond in
the form and in the amounts set forth in § 10-302 of this

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