PARRIS N. GLENDENING, Governor                             Ch. 569

CHAPTER 569
(House Bill 780)

AN ACT concerning

Real Property - New and Custom Homes - Escrow Accounts

FOR the purpose of making a violation of certain escrow and trust provisions relating to
construction of new and custom homes a felony; increasing the penalties for a
violation of certain escrow and trust provisions relating to construction of new and
custom homes; establishing that in order to be found in violation of the certain new
and custom home provisions, an individual must have acted with a certain intent;
requiring a person convicted of a violation of certain new and custom home provisions to
make restitution to the purchaser as determined by the court; making these certain
violations an unfair or deceptive trade practice subject to certain provisions of the
Consumer Protection Act; requiring the Division of Consumer Protection of the
Office of the Attorney General to create a certain disclosure form that advises new
home buyers of buyers' rights; requiring a builder to provide a certain disclosure
form to new home buyers; eliminating certain qualifications relating to the
circumstances in which a custom home builder must need not place a buyer's
consideration in an escrow account; allowing a custom home buyer to require the
builder to establish an individual escrow account for the buyer's contract; requiring
the vendor or builder of a custom home to periodically provide certain information
to the buyer and the buyer's financial institution; repealing a requirement that the
buyer make a written request in order to receive certain information; requiring a custom
home builder to disclose certain information in the contract relating to the buyer's
rights; making stylistic changes; and generally relating to contracts for new and
custom homes.

BY repealing and reenacting, with amendments,
Article - Real Property
Section 10-305 and 10-504 through 10-507
Annotated Code of Maryland
(1988 Replacement Volume and 1994 Supplement)

BY adding to

Article - Real Property

Section 10-306

Annotated Code of Maryland

(1988 Replacement Volume and 1994 Supplement)

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

- 3271 -