Ch. 569                                    1995 LAWS OF MARYLAND

(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.

10-505.

Every custom home contract between a custom home builder and the buyer must be
in writing. The custom home contract shall:

(1)     Include a draw schedule that shall be set forth on a separate sheet of
paper and that shall be separately signed by the buyer and the custom home builder;

(2)     [Require the custom home builder, on written request of the buyer, to
identify] IDENTIFY to the extent known the names of the primary subcontractors who
will be working on the custom home;

(3)     Expressly state that any and all changes that are to be made to the
contract shall be recorded as "change orders" that specify the change in the work ordered
and the effect of the change on the price of the house;

(4)     Set forth in bold type whether or not the vendor or builder is covered by
a warranty program guaranteed by a third party;

(5)     Require the vendor or builder[, upon written request of the
purchaser, ] to deliver to the purchaser within 30 days after each progress payment a list
of the subcontractors or materialmen who have been paid more than $500, SUPPLIERS,
OR MATERIALMEN WHO HAVE PROVIDED MORE THAN $500 OF GOODS OR SERVICES
TO DATE AND INDICATE WHICH OF THEM HAVE BEEN PAID by the vendor or builder;
and] TO PROVIDE TO THE BUYER AND BUYER'S FINANCING INSTITUTION AT LEAST
5 DAYS BEFORE THE BUILDER REQUESTS OR WITHDRAWS EACH PROGRESS
PAYMENT A REPORT THAT;

(I) DESCRIBES THE WORK COMPLETED TO DATE;

(II) ITEMIZES HOW THE BUILDER HAS EXPENDED ALL PRIOR
PROGRESS PAYMENTS THE BUILDER RECEIVED;

(III) PROVIDES WAIVERS OF LIENS RECEIVED FROM ALL
APPLICABLE SUBCONTRACTORS, SUPPLIERS, OR MATERIALMEN WHO HAVE
PROVIDED GOODS OR SERVICES TO DATE; AND

(IV) ITEMIZES ALL GOODS AND SERVICES THAT HAVE BEEN
PROVIDED BY SUBCONTRACTORS, SUPPLIERS, OR MATERIALMEN WHO HAVE NOT
PROVIDED WAIVERS OF LIENS AND EXPLAINS WHY SUCH WAIVERS HAVE NOT BEEN
PROVIDED;

(6)     Require that the custom home builder provide waivers of liens from all
applicable subcontractors, suppliers, or materialmen within a reasonable time after the
final payment for the goods or services they provide; AND.

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