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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0093*
HOUSE BILL 93
C2, I3 6lr1121
(PRE–FILED)
By: Delegate Crosby
Requested: October 8, 2025
Introduced and read first time: January 14, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Home Builders – Model Homes and Contracts for the Intent to Purchase a New 2
Home – Requirements 3
FOR the purpose of requiring certain home builders that construct model homes to make 4
certain information about the model home available to prospective home buyers in a 5
certain manner; requiring a home builder to provide certain information about model 6
home upgrades to a home buyer at the time of signing a certain contract; providing 7
that a home buyer has a right to rescind a contract for the intent to purchase a new 8
home for any reason within a certain period of time ; requiring a home builder to 9
refund certain money to a home buyer under certain circumstances; and generally 10
relating to model homes, contracts for the intent to purchase a new home, and home 11
builders. 12
BY repealing and reenacting, without amendments, 13
Article – Business Regulation 14
Section 4.5–101(a), (g), and (m) 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Business Regulation 19
Section 4.5–502; and 4.5–801 to be under the amended subtitle “Subtitle 9. Short 20
Title” 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23
BY adding to 24
Article – Business Regulation 25
Section 4.5–801 through 4.5 –803 to be under the new subtitle “Subtitle 8. Model 26
Homes and Contracts for the Intent to Purchase a New Home” 27
2 HOUSE BILL 93
Annotated Code of Maryland 1
(2024 Replacement Volume and 2025 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Business Regulation 5
4.5–101. 6
(a) In this title the following words have the meanings indicated. 7
(g) (1) “Home builder” means a person that undertakes to erect or otherwise 8
construct a new home. 9
(2) “Home builder” includes: 10
(i) a custom home builder as defined in § 10 –501 of the Real 11
Property Article; 12
(ii) a new home builder subject to § 10 –301 of the Real Property 13
Article; 14
(iii) the installer or retailer of a mobile home or an industrialized 15
building intended for residential use; and 16
(iv) a person that enters into a contract with a consumer under which 17
the person agrees to provide the consumer with a new home. 18
(3) “Home builder” does not include: 19
(i) an employee of a registrant who does not hold himself or herself 20
out for hire in home building except as an employee of a registrant; 21
(ii) subcontractors or other vendors hired by the registrant to 22
perform servic es or supply materials for the construction of a new home who do not 23
otherwise meet the requirements of this title; 24
(iii) the manufacturer of industrialized buildings intended for 25
residential use or of mobile homes, unless the manufacturer also installs the industrialized 26
buildings or mobile homes; 27
(iv) a real estate developer who does not construct, or enter into 28
contracts with consumers to provide or construct, homes; 29
(v) a financial institution that lends funds for the construction or 30
purchase of residential dwellings in the State; 31
HOUSE BILL 93 3
(vi) except as otherwise provided in this title, a person who erects or 1
constructs new homes solely in Montgomery County; or 2
(vii) a buyer’s agent, as defined in § 17 –530 of the Business 3
Occupations and Professions Article, when representing a prospective buyer in the 4
purchase of a new home. 5
(m) (1) “New home” means each newly constructed residential dwelling unit in 6
the State and the fixtures and structure that are made a part of a newly constructed private 7
dwelling unit at the time of construction. 8
(2) “New home” includes: 9
(i) a custom home as defined in § 10 –501(c) of the Real Property 10
Article; 11
(ii) a new home to which § 10 –301 of the Real Property Article 12
applies; 13
(iii) an industrialized building intended for residential use; and 14
(iv) a mobile home. 15
4.5–502. 16
(a) Subject to the notice and hearing provisions of Title 10, Subtitle 2 of the State 17
Government Article, the Division may bring a civil administrative action against a perso n 18
that violates § 4.5 –501(a) of this subtitle OR ANY PROVISION OF SUBTITLE 8 OF THIS 19
TITLE. 20
(b) After a hearing, if the Division finds that a person has: 21
(1) violated § 4.5–501(a) of this subtitle, the Division may: 22
[(1)] (I) order the person to cease and desist from unlawful practice; and 23
[(2)] (II) impose a civil penalty of not more than $1,000 for each day of 24
unlawful practice; OR 25
(2) VIOLATED ANY PROVISI ON OF SUBTITLE 8 OF THIS TITLE , THE 26
DIVISION MAY: 27
(I) ORDER THE PERSON TO CEASE AND DESIST FROM 28
UNLAWFUL PRACTICE; AND 29
4 HOUSE BILL 93
(II) 1. FOR A FIRST OFFENSE OR FOR A SECOND OFFENSE IF 1
THE HOME BUILDER REMAINS IN VIOLATION FOR LESS THAN 3 DAYS, IMPOSE A FINE 2
UP TO $5,000 PER DAY THAT THE VIOLATION CONTINUES; 3
2. FOR A SECOND OFFENSE , IF THE HOME BUILDER 4
REMAINS IN VIOLATION FOR 3 DAYS OR MORE, IMPOSE A FINE UP TO $10,000 PER 5
DAY THAT THE VIOLATION CONTINUES; AND 6
3. FOR A THIRD OR SUBSE QUENT OFFENSE , SUSPEND 7
THE REGISTRATION OF THE HOME BUILDER FOR UP TO 30 DAYS. 8
(c) Any party aggrieved by a decision and order of the Division under this section 9
may file an appeal as provided under §§ 10 –222 and 10 –223 of the State Government 10
Article. 11
SUBTITLE 8. MODEL HOMES AND CONTRACTS FOR THE INTENT TO PURCHASE A 12
NEW HOME. 13
4.5–801. 14
(A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 15
INDICATED. 16
(B) “BASE MODEL HOME ” MEANS A MODEL HOME T HAT INCLUDES ONLY 17
BUILDER GRADE ITEMS WITH NO UPGRADES. 18
(C) “BUILDER GRADE” MEANS ANY STANDARD , BASIC QUALITY FEATURE, 19
MATERIAL, OR APPLIANCE THAT IS INCLUDED IN THE PURCHASE PRICE OF A BASE 20
MODEL NEW HOME WITH NO UPGRADES. 21
(D) “CONSULTATION SERVICES ” MEANS PROFESSIONAL A DVISORY 22
SERVICES PROVIDED BY A HOME BUILDER TO A POTENTIAL HOME BUYER 23
REGARDING THE DESIGN AND PURCHASE OF A NE W HOME BEFORE THE PURCHASE 24
OF A NEW HOME , INCLUDING REVIEWING PRICING INFORMATION AND BUILDING 25
OPTIONS AND ANSWERING RELATED INQUIRIES. 26
(E) “MODEL HOME” MEANS A REPRESENTATIVE HOME CONSTRUCTED AND 27
FURNISHED TO DEMONSTRATE THE FEATURES, DESIGNS, AND LAYOUTS AVAILABLE 28
FOR PURCHASE IN A NEW HOME FROM A HOME BUILDER. 29
(F) “UPGRADE” MEANS ANY FEATURE , MATERIAL, APPLIANCE, 30
IMPROVEMENT, OR OTHER EXTRA THAT HAS A STANDARD OF QUALITY ABOVE A 31
BUILDER GRADE OFFERING. 32
HOUSE BILL 93 5
4.5–802. 1
(A) (1) FOR EACH MODEL HOME CONSTRUCTED BY A HOME BUILDER, THE 2
HOME BUILDER SHALL PROVIDE TO EACH PROSPECTIVE HOME BUYER A DOCUMENT 3
THAT INCLUDES: 4
(I) A COMPLETE LIST OF ALL UPGRADES IN THE MODEL HOME 5
AND THE ESTIMATED COST OF EACH UPGRADE; 6
(II) FOR EACH BUILDER GRADE ITEM NOT USED IN THE MODEL 7
HOME, THE CREDIT VALUE FOR THE BUILDER GRADE ITEM TOWARD AN UPGRADED 8
ITEM; 9
(III) THE TOTAL PRICE AND SQUARE FOOTAGE OF THE BASE 10
MODEL HOME; AND 11
(IV) THE TOTAL PRICE AND SQUARE FOOTAGE OF THE MODEL 12
HOME INCLUSIVE OF ALL UPGRADES IN THE MODEL HOME. 13
(2) AT THE REQUEST OF A POTENTIAL HOME BUYER , THE HOME 14
BUILDER SHALL MAKE A COPY OF THE DOCUMENT UNDER PARAGRAPH (1) OF THIS 15
SUBSECTION AVAILABLE IN BOTH PAPER AND ELECTRONIC FORMATS. 16
(B) (1) THE HOME BUILDER OF A MODEL HOME SHALL POST A SIGN 17
WITHIN 10 FEET OF THE MAIN ENT RANCE OF THE MODEL HOME THAT IS C LEARLY 18
VISIBLE TO A POTENTIAL HOME BUYER THAT INCL UDES THE FOLLOWING 19
INFORMATION: 20
(I) A LIST OF ALL UPGRADES INCLUDED IN THE MODEL HOME; 21
(II) THE COST OF EACH INDIVIDUAL UPGRADE IN THE MODEL 22
HOME, INCLUDING MATERIALS, LABOR, AND BUILDER MARKUP CLEARLY LISTED; 23
(III) THE TOTAL PRICE AND SQUARE FOOTAGE OF TH E BASE 24
MODEL HOME WITH NO UPGRADES; AND 25
(IV) THE TOTAL PRICE AND SQUA RE FOOTAGE OF THE MO DEL 26
HOME INCLUSIVE OF ALL UPGRADES. 27
(2) A SIGN POSTED UNDER PA RAGRAPH (1) OF THIS SUBSECTION 28
SHALL: 29
(I) USE A CLEAR, SIMPLE FONT; 30
6 HOUSE BILL 93
(II) HAVE LETTERS A MINIMUM OF ONE–HALF INCH IN HEIGHT; 1
AND 2
(III) BE UNOBSTRUCTED FROM VIEW. 3
4.5–803. 4
(A) AT THE TIME OF SIGNING A CONTRACT FOR THE INTENT TO PURCHASE 5
A NEW HOME , THE HOME BUILDER SHA LL PROVIDE THE HOME BUYER WITH A 6
COMPLETE LIST OF ALL AVAILABLE UPGRADES AND THE COST OF EACH UPGRADE. 7
(B) A HOME BUILDER MAY CHA RGE A FEE OF UP TO $250 FOR 8
CONSULTATION SERVICES TO A PROSPECTIVE HOME BUYER. 9
(C) (1) A HOME BUYER HAS THE RIGHT TO RESCIND A CONTRACT FOR 10
THE INTENT TO PURCHASE A NEW HOME WITHIN 5 BUSINESS DAYS AFTER THE DATE 11
OF SIGNING THE CONTRACT FOR ANY REASON. 12
(2) EXCEPT FOR A CONSULTA TION FEE UNDER SUBSECTION (B) OF 13
THIS SECTION, IF THE HOME BUYER RESCINDS A CONTRACT UNDER PARAGRAPH (1) 14
OF THIS SUBSECTION, THE HOME BUILDER SHALL FULLY REFUND ALL MONEY PAID 15
TO THE HOME BUILDER, INCLUDING: 16
(I) ANY DEPOSIT FOR A HOMESITE, LOT, OR OTHER PARCEL OF 17
LAND; 18
(II) A DEPOSIT FOR THE NEW HOME; AND 19
(III) ANY OTHER ADVANCE MONEY PAID A S PART OF THE NEW 20
HOME PURCHASING PROCESS. 21
Subtitle [8.] 9. Short Title. 22
[4.5–801.] 4.5–901. 23
This title may be cited as the Maryland Home Builder Registration Act. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2026. 26