Sec. 09.01.09.03. Disclosure Required by Builder Leaving Decision to Participate in New Home Warranty Security Plan to the Buyer

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

B. The disclosure shall read as follows:

Maryland law allows a builder who participates in a new home warranty plan to offer the warranty to the buyer at the buyer's option. A builder who proceeds in this fashion must make the following disclosure as part of the contract for sale or construction of a new home.

Builders of new homes, in the State of Maryland, are required to be registered with the Consumer Protection Division of the Office of the Attorney General unless they build new homes exclusively in Montgomery County. In that case, they are required to register with the Montgomery County Office of Consumer Affairs.

I have decided to allow the buyer the option of obtaining a new home warranty. If the buyer decides not to have the builder obtain the new home warranty, the buyer may be afforded only certain limited warranties as provided by law.

The buyer may decide to waive the right to a warranty, if this decision is solely the decision of the buyer. A builder cannot ask a buyer to sign a waiver of the right to have a warranty. A builder cannot refuse to build a new home for a buyer because the buyer decided to ask for a warranty. If the buyer asks for a new home warranty, the builder must provide the warranty.

The nature and extent of the warranty that would be provided to the buyer is as follows

__________________________________________________________
Name of Security Plan Phone
____________________________ Cost of Warranty 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 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 BuyerDate

______________________________ ______________________________
Acknowledgement of Builder Date

Waiver of Warranty Right

The buyer has read and understands the above information and wishes to waive the right to a new home warranty. The buyer further understands that the buyer can change the buyer's mind and can request a warranty by completing the rescission clause at the end of this notice by delivering it to the builder, within 3 working days from the date the buyer signed this contract.

______________________________ ______________________________
Signature of BuyerDate

Rescission Clause for Waiver of Warranty Right

The buyer has decided to rescind the waiver or warranty right and to obtain the warranty coverage described in detail in the contract. The buyer understands that the cost to obtain the warranty will be $_________.

The buyer requests that the builder register the new home located, or to be built, at

_______________________________________________________________________
Street AddressCityZip Code

with the builder's new home warranty security plan.

______________________________ ______________________________
Signature of BuyerDate