Consumer Protection Division Settles With Five Home Builders

Attorney General Douglas F. Gansler announced today that his Consumer Protection Division’s Home Builder Registration Unit reached a settlement with US Home Corporation, the successor by merger to Patriot Homes, Inc. of Columbia, Maryland. The company’s registration had been suspended for failing to resolve a number of building code violations in Charles County. Patriot has since resolved the code violations and entered into a settlement agreement with the Division in which it agrees to comply with applicable laws or regulations that relate to building homes; comply with all registration and renewal requirements; arbitrate consumer complaints; and pay a penalty of $3,000. Charles County government notified the Attorney General’s Office of the violations and assisted in the investigation.

“We are committed to enforcing the laws that protect consumers when they make one of the biggest investments of their lives - purchasing a new home,” said Attorney General Gansler.

The Unit also entered into settlement agreements with four other home builders who have agreed to pay a total of $4,000 in penalties to settle allegations that they violated Maryland’s building laws including operating without being registered or making required disclosures to the Home Builder Registration Unit in their registration applications.

The following builders entered into settlements prohibiting them from acting as a home builder in the State unless registered with the Home Builder Registration Unit and requiring the builders to comply with other Maryland laws governing home builders.

• Jarryn Ryan Avery (Baltimore)
• Churchhill Development Corp., t/a Churchhill Group (Rockville)
• DP Custom Homes, LLC (Upper Marlboro)
• Diversified Properties, LLC (Upper Marlboro)

The builders also agreed to arbitrate consumer complaints that cannot be resolved through mediation, using the Division’s arbitration program.

“Under Maryland law, home builders must be registered before they can enter into contracts to build homes for consumers,” said Attorney General Gansler. “Builders must also disclose all relevant information concerning their history in their applications to register or renew registration.”

The Attorney General encouraged new home buyers to check whether their builder is registered by contacting the Division’s Home Builder Registration Unit at (410) 576-6573 or toll-free at (877) 259-4525, or by visiting the Attorney General’s website at www.oag.state.md.us/homebuilder.