Home Builders - Open House - Sales Representative Disclosure Requirements, the official text

WES MOORE, Governor                  Ch. 544

Chapter 544

                   (House Bill 850)

AN ACT concerning

Home Builders – Open House – Sales Representative Disclosure Requirements

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

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

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

                   Article – Business Regulation

4.5–307.

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

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

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

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

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

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Ch. 544  2026 LAWS OF MARYLAND

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

         (ii) the first agreement signed by the consumer.

        (D) (1) A HOME BUILDER HOLDING A PROPERTY OPEN TO THE PUBLIC
SHALL DISPLAY, IN A CONSPICUOUS MANNER, A NOTICE TO PROSPECTIVE BUYERS
THAT STATES: “THE SALES REPRESENTATIVE WORKS FOR THE HOME BUILDER,

WHICH MEANS THAT HE OR SHE MAY ASSIST THE BUYER IN PURCHASING THE

PROPERTY, BUT HIS OR HER DUTY OF LOYALTY IS ONLY TO THE HOME BUILDER. AS
A BUYER OF A NEW HOME, YOU HAVE THE RIGHT TO OBTAIN YOUR OWN

INDEPENDENT REPRESENTATION TO NAVIGATE THE NEW HOME PURCHASING

PROCESS.”.

                (2) THE DISCLOSURE REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL:

         (I) USE A CLEAR, SIMPLE FONT;

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

AND

         (III) BE UNOBSTRUCTED FROM VIEW.

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

Approved by the Governor, May 12, 2026.

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