|
Home
Builder Registration Unit
Consumer
Protection Division
200 St. Paul Place, Baltimore, MD 21202
(410) 576-6573 / Toll Free: (877) 259-4525
Fax: (410) 576-6566 / Email: homebuilder@oag.state.md.us
All
home builders who build homes in Maryland must be registered
with
the Home Builder Registration Unit. This page outlines the major
provisions of the Home Builder Registration Act and should
answer
most questions regarding who must register, procedures for registering,
and information that registered builders must include in
their
contracts and advertisements.
Important: Effective
October 1, 2008, all Sales Representatives for
home builders in Maryland must be registered with the Home Builder
Registration
Unit, including Sales Representatives for home builders
who build exclusively in Montgomery County. A "sales
representative"
is defined as "an individual employed by a home builder
as the home builder's representative to consumers regarding the
purchase
of a new home from the home builder." For more information,
or to register as a Home
Builder Sales Representative, click here.
 New Laws regarding Condominium Repairs, High Efficiency Residential Buildings, Ground Leases, Foreclosure Property Registry, and Sustainable Land Use.
Who
must register as a home builder?
How does a builder register?
Who is a principal of a home builder?
What must a builder include in its contracts?
What performance standards or guidelines will apply
to the contract?
How can builders obtain their copies of the consumer
information pamphlet?
What must a builder include in its advertising?
Where can I obtain a copy of the Maryland Home Builder
Registration Act and the other State laws mentioned in that Act?
Who
must register as a home builder?
The Act requires persons to register who build new homes or who
enter into contracts to sell new homes to consumers. Some builders
have a single legal entity that both builds the home and sells it
to the consumer. For such a builder, that single legal entity will
have to register as a home builder. Other builders have one legal
entity construct the home and a separate legal entity sell it. For
such a builder, both legal entities will have to register as a home
builder.
There
are six important types of legal entities or people who do NOT have
to register under the Act. They are:
(i)
an employee of a registrant who does not hold himself or herself
out for hire in home building except as an employee of a registrant;
(ii)
subcontractors or other vendors hired by the registrant to perform
services or supply materials for the construction of a new home
who do not otherwise meet the requirements of the Act;
(iii)
the manufacturer of industrialized buildings intended for residential
use or of mobile homes, unless the manufacturer also installs the
industrialized buildings or mobile homes;
(iv)
a real estate developer who does not construct or sell homes;
(v)
a financial institution that lends funds for the construction or
purchase of residential dwellings in the State; or
(vi)
a person who erects or constructs new homes solely in Montgomery
County.
back
to top
How
does a builder register?
A builder can Register
Online and pay the registration fee of
$600 by Visa, Mastercard, check, or money order.
To Register Online Click here
Or, a builder can Register
By Mail by completing all required
forms and mailing them along with a check or money order to the
Home Builder Registration Unit.
To Register By Mail Click here
back
to top
Who
is a principal of a home builder?
All builders will have at least one principal. Under the Act,
"principal" means:
(a)
a sole proprietor, officer, director, general partner, or limited
liability company manager of the applicant;
(b)
a person with at least 10 percent ownership in either the applicant
or a subsidiary of the applicant; or
(c)
parents, spouses, and children with a combined 10 percent ownership
in the applicant or a subsidiary of the applicant.
back
to top
What
must a builder include in its contracts?
The Act requires builders to include certain information
in their contracts, except for those contracts covering sales in
Montgomery County. This information must be printed in conspicuous
type in all contracts. The information that must be included in
a contract for the sale of a new home includes:
(i)
the builder registration number of the seller of the new home;
(ii)
a provision stating that the new home shall be constructed in accordance
with all applicable building codes in effect at the time of the
construction of the new home;
(iii)
a provision referencing all performance standards or guidelines:
- That the seller shall comply with in the construction of the
new home; and
-
That shall prevail in the performance of the contract and any
arbitration or adjudication of a claim arising from the contract;
and
(iv)
a provision detailing the purchaser's right to receive a consumer
information pamphlet as provided under the Home Builder Registration
Act.
back
to top
What
performance standards or guidelines will apply to the contract?
The performance standards or guidelines shall be one of the following:
(i)
the performance standards or guidelines adopted at the time of the
contract:
(a)
by the National Association of Home Builders; or (b) under the
federal National Manufactured Housing and Safety Standards Act,
to the extent applicable;
(ii)
any performance standards or guidelines adopted by the home builder
and incorporated into the contract that are equal to or more
stringent
than the performance standards adopted at the time of the contract;
(a)
by the National Association of Home Builders; or (b) under the
federal National Manufactured Housing and Safety Standards Act,
to the extent applicable:
(iii)
any performance standards or guidelines adopted at the time of the
contract by a county or municipal corporation that are equal to
or more stringent than the performance standards or guidelines adopted
at the time of the contract:
(a)
by the National Association of Home Builders; or (b) under the
federal National Manufactured Housing and Safety Standards Act,
to the extent applicable.
back
to top
How
can builders obtain their copies of the consumer information
pamphlet?
Home builders are required to provide each consumer with the
consumer information pamphlet developed by the Division's
Home Builder Registration Unit before entering into a contract
for the sale
of a new home. The Unit provides each builder with a sufficient
number of consumer information pamphlets to meet their needs. To
request that pamphlets be sent to you, estimate the number of pamphlets
you anticipate you will need and mail or fax the Consumer
Information Pamphlet Order Form or send your request
by e-mail to homebuilder@oag.state.md.us.
What
must a builder include its advertising?
A builder must include its registration number in its advertisements.
The registration number must be in one of the following forms in
the advertisement:
"Maryland
Home Builder Registration No. ______", or
"MHBR
No. ________".
It
was not the intent of the General Assembly to require that this
number be included on magnets, pens, key chains, and other trinkets.
back
to top
Where
can I obtain a copy of the Maryland Home Builder Registration Act
and the other State laws mentioned in that Act?
Click on a law to view it:
- The
Maryland Home Builder Registration Act.
-
§ 14-117 (j) of the Real Property Article. This law describes
performance standards or guidelines, and other provisions that
must be included in new home contracts.
- The
law on Express and Implied Warranties.
- Regulations
Concerning the Protection of Consumer Deposits
- The
law on Deposits on New Homes.
- The
Custom Home Protection Act.
- The
law on New Home Warranties (Third Party Warranties).
- The
definitions in Article 83B of "industrialized building", "install",
and "mobile home."
- The
definitions in the Financial Institutions Article of "mortgage
lender" and "out-of-state bank."
- The
definitions in the Consumer Protection Act of "unfair or deceptive
trade practices."
back
to top
|
