Sec. 09.01.09.05. Notice to Buyer Required by Builders Participating in New Home Warranty Security Plan or Electing to Allow Buyer the Option of Participating in New Home Warranty Security Plan

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

B. The notice shall be incorporated into the contract in a conspicuous manner and shall read as follows:

Notice to Buyer

Your new home will be covered by a new home warranty that meets the minimum requirements established under Title 10, Subtitle 6 of the Real Property Article of the Annotated Code of Maryland. Before you sign this contract, your builder is required to give you a copy of the warranty coverage you will receive.

The name of the new home warranty security plan in which your builder is currently a participant is ____________ . You are strongly encouraged to call the new home warranty security plan at ______ to verify (1) that your builder is in good standing with this company, and (2) that your new home will be covered by a warranty from this company.

If the builder is not a participant in good standing with this company on the date of this contract, or if the new home has not been registered in the plan on or before the warranty date, then it is a material breach of the contract and you are entitled to whatever remedies are provided by law, including, but not limited to, rescission or cancellation of this contract and, except in the case of a construction contract for a new home built on your own property, a refund of any money paid to the builder for your new home.

On the day that you first occupy the new home, settle on the new home, make the financial payment to the builder on your new home, or obtain an occupancy permit for a new home if the new home is built on your own property, whichever is earlier, you will be provided with evidence that a new home warranty exists for your new home and that coverage begins on that date. You will be provided with a signed new home warranty within 60 days from the date the coverage begins.

The terms used in this notice shall have the same meanings as provided in Title 10, Subtitle 6 of the Real Property Article of the Annotated Code of Maryland.

The buyer has read and understands the above disclosure.

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Signature of Buyer Date
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Acknowledgment of Builder Date