WILLIAM DONALD SCHAEFER, Governor

Ch. 740

Annotated Code of Maryland

(1992 Replacement Volume and 1993 Supplement)

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

Article - Business Regulation

8-405.

(a) Subject to this subtitle, an owner may recover compensation from the Fund for
an actual loss that results from an act or omission by a licensed contractor OR A
VIOLATION OF § 8-607(4) OF THIS TITLE as found by the Commission or a court of
competent jurisdiction.

8-501.

(c) (1) In addition to any other matters on which the parties lawfully agree,
each home improvement contract shall contain:

[(l)](I) the name, address, and license number of the contractor;

[(2)]|(II) the name and license number of each salesperson who solicited the
home improvement contract or sold the home improvement;

[(3)](III) the approximate dates when the performance of the home
improvement will begin and when it will be substantially completed;

[(4)](IV) a description of the home improvement to be performed and the
materials to be used;

[(5)](V) the agreed consideration;

[(6)](VI) the number of monthly payments and the amount of each payment,
including any finance charge;

[(7)](VII) a description of any collateral security for the obligation of the
owner under the home improvement contract; and

[(8)](VIII) a notice that gives the telephone number of the Commission and
states that:

[(i)] 1. each contractor and each subcontractor must be licensed by
the Commission; and

[(ii)]2. anyone may ask the Commission about a contractor or
subcontractor.

(2) IF PAYMENT FOR WORK PERFORMED UNDER THE HOME
IMPROVEMENT CONTRACT WILL BE SECURED BY AN INTEREST IN RESIDENTIAL
REAL ESTATE, A WRITTEN NOTICE IN NOT SMALLER THAN 10 POINT BOLD TYPE
THAT IS ON THE FIRST PAGE OF THE CONTRACT SHALL STATE IN SUBSTANTIALLY
THE FOLLOWING FORM: "THIS CONTRACT CREATES A MORTGAGE OR LIEN AGAINST
YOUR PROPERTY TO SECURE PAYMENT AND MAY CAUSE A LOSS OF YOUR

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