Sec. 09.01.09.02. Disclosure Required by Builders Participating in New Home Warranty Security Plan

A. The disclosure shall be printed in at least 12-point type.

B. The disclosure shall read as follows:

Maryland law requires a builder who participates in a new home warranty security plan to make the following disclosure as part of the contract for sale or construction of a new home:

I am a builder who participates in a Maryland approved new home warranty security plan, and under the terms of that plan, I am required to provide the buyer with a new home warranty which meets the requirements of Maryland law.

I am a participant, in good standing, with the following plan:

________________________________________________________ Name of Security Plan Phone

The home located at the following address is eligible for and will be enrolled in the new home warranty security plan:

____________________________________________________
____________________________________________________
____________________________________________________

The plan provides the following coverage:

Minimum warranty coverage -

One year-free from any defects in material and workmanship

Two years-free from any defect in the electrical, plumbing, heating, cooling and ventilating systems, except that the following appliances, fixtures and items of equipment are only covered for the length and scope of the warranty offered by the manufacturer:

Item Length of Warranty
____________________________________________________ ____________________________________________________

Five years-free from any structural defects

Other express warranties provided:

____________________________________________________ ____________________________________________________ ____________________________________________________

Items excluded under this warranty plan:

Damage to real property that is not part of the home covered by the warranty or that is not included in the purchase price.

Bodily injury or damage to personal property.

Any defect in material supplied or work performed by anyone other than the builder or the builder's employees, agents, or subcontractors.

Any damage that the owner has not taken timely action to minimize or for which the owner has failed to provide timely notice to the builder.

Normal wear and tear or normal deterioration.

Insect damage, except where the builder has failed to use proper materials or construction methods designed to prevent insect infestation.

Any loss or damage that arises while the home is being used primarily for nonresidential purposes.

Any damage to the extent it is caused or made worse by negligence, improper maintenance, or improper operations by anyone other than the builder or the builder's employees, agents, or subcontractors.

Any damage to the extent that it is caused or made worse by changes in grading of the ground by anyone other than the builder, the builder's employees, agents, or subcontractors.

Any loss or damage caused by acts of God.

I must provide a copy of the warranty plan to the buyer at the time of the contract for sale or construction of the new home. To the extent that the warranty documents provide lesser protection to the buyer than State law, State law prevails.

Maryland law requires me to either disclose any actual knowledge that I have of any hazardous or regulated materials which are present on the site of the new home or to state that I am making no representations or warranties as to whether any hazardous or regulated materials are present on the site of the new home.

__ I have actual knowledge that the following hazardous or regulated materials are present on the site of the new home:

__ Asbestos	__ Lead-Based Paint	__ Radon
__ Methane	__ Underground Storage Tanks
__ Licensed Landfills	__ Unlicensed Landfills
__ Licensed Rubble Fills	__ Unlicensed Rubble Fills

Other Hazardous or Regulated Materials and Other Environmental Hazards Present on the Site:

OR

__ I have no actual knowledge of any hazardous or regulated material present on the site of the new home.

OR

__ I am making no representations or warranties as to whether there is any hazardous or regulated material on the site of the new home.

The buyer has read and understands the above disclosure.

____________________________________________________________
Signature of Buyer Date
____________________________________________________________
Acknowledgement of BuilderDate