PARRIS N. GLENDENING, Governor                             Ch. 569

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 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] CUSTOM HOME 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] YOU MAY REQUIRE YOUR BUILDER to
establish a separate escrow account for your project which will require your signature for
any withdrawals."

10-507.

(a) In addition to any other penalty provided elsewhere in the Annotated Code,
any conduct that fails to comply with this subtitle, or any breach of any trust created by
this subtitle, is:

(1) An unfair or deceptive trade practice within the meaning of Title 13 of
the Commercial Law Article; and

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