Home Builders - Open House - Sales Representative Disclosure Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0850*

HOUSE BILL 850
C2 6lr0672

By: Delegates Bhandari and A. Johnson
Introduced and read first time: February 4, 2026
Assigned to: Economic Matters
Committee Report: Favorable
House action: Adopted
Read second time: February 27, 2026

CHAPTER ______

AN ACT concerning 1

Home Builders – Open House – Sales Representative Disclosure Requirements 2

FOR the purpose of requiring a home builder holding a property open to the public to 3
display a certain notice to prospective buyers disclosing the duties of a home builder 4
sales representative; and generally relating to disclosure requirements and home 5
builders. 6

BY repealing and reenacting, with amendments, 7
Article – Business Regulation 8
Section 4.5–307 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Business Regulation 14

4.5–307. 15

(a) (1) Each registrant shall display its home builder registration number 16
conspicuously on all properties at which the registrant is performing work that requires 17
registration under this title. 18

2 HOUSE BILL 850

(2) If a registrant is building multiple homes in one project area or 1
subdivision, the registrant may post its home builder registration number in one central 2
conspicuous location in the project area or subdivision. 3

(b) Each registered sales representative shall display the re gistration certificate 4
conspicuously at the property at which the registered sales representative primarily 5
performs work that requires registration under this title. 6

(c) (1) A home builder shall provide each prospective home buyer with a 7
disclosure that states: “The sales representative works for the home builder, which means 8
that he or she may assist the buyer in purchasing the property, but his or her duty of loyalty 9
is only to the home builder.”. 10

(2) The disclosure under paragraph (1) of this subsection shall be in at least 11
12–point bold type and shall be included with: 12

(i) any written materials made available to consumers at the 13
property at which a registered sales representative primarily performs work that requires 14
registration under this title; and 15

(ii) the first agreement signed by the consumer. 16

(D) (1) A HOME BUILDER HOLDING A PROPERTY OPEN TO T HE PUBLIC 17
SHALL DISPLAY, IN A CONSPICUOUS MAN NER, A NOTICE TO PROSPECT IVE BUYERS 18
THAT STATES: “THE SALES REPRESENTAT IVE WORKS FOR THE HO ME BUILDER , 19
WHICH MEANS THAT HE OR SHE MAY ASSIST TH E BUYER IN PURCHASIN G THE 20
PROPERTY, BUT HIS OR HER DUTY OF LOYALTY IS ONLY TO THE HOME BUILDER. AS 21
A BUYER OF A NEW HOM E, YOU HAVE THE RIGHT T O OBTAIN YOUR OWN 22
INDEPENDENT REPRESENTA TION TO NAVIGATE THE NEW HOME PURCHASING 23
PROCESS.”. 24

(2) THE DISCLOSURE REQUIR ED UNDER PARAGRAPH (1) OF THIS 25
SUBSECTION SHALL: 26

(I) USE A CLEAR, SIMPLE FONT; 27

(II) HAVE LETTERS A MINIMUM OF ONE–HALF INCH IN HEIGHT; 28
AND 29

(III) BE UNOBSTRUCTED FROM VIEW. 30

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2026. 32