Section 4.5-701 – “Actual Loss” Defined
In this subtitle, “actual loss” means: (1) the costs of restoration, repair, replacement, or completion that arise from: (i) the incomplete construction of a new home or the breach of an express or implied warranty, as defined in §§ 10–202 and 10–203 of the Real Property Article; or (ii) the failure to meet standards or guidelines required in […]
Section 4.5-702 – Authority to Take Disciplinary Action Not Limited
This subtitle does not: (1) limit the authority of the Division to take disciplinary action against a registrant under this subtitle; (2) limit the availability of other remedies to a claimant; or (3) require a claimant to exhaust administrative remedies before the Division before bringing an action to court.
Section 4.5-703 – Home Builder Guaranty Fund Established
(a) The Division shall: (1) establish a Home Builder Guaranty Fund; and (2) maintain the Guaranty Fund at a level of at least $1,000,000. (b) (1) The Division shall deposit all money collected under § 4.5–704 of this subtitle in the Guaranty Fund. (2) (i) The State Treasurer is the custodian of the Guaranty Fund. (ii) The Guaranty Fund shall be invested and […]
Section 4.5-704 – Guaranty Fund Fee
(a) (1) Subject to the provisions of subsection (c) of this section, a home builder shall pay to a county or a municipal corporation a Guaranty Fund fee per home or residential unit as set by the Division under subsection (c) of this section with each application for a permit for construction of a new home or […]
Section 4.5-705 – Recovery From Fund for Actual Loss Caused by Registrant
(a) Subject to this subtitle a claimant may recover compensation from the Guaranty Fund for an actual loss that results from an act or omission by a registrant as found by the Division or a court of competent jurisdiction. (b) Before submitting a claim to the Guaranty Fund, a consumer shall: (1) send a registrant a written notice […]
Section 4.5-706 – Proceedings for Recovery
(a) To begin a proceeding to recover from the Guaranty Fund, a claimant shall submit to the Division’s mediation unit a written complaint that states: (1) the amount claimed based on the actual loss; (2) the facts giving rise to the claim; (3) whether there is other evidence that supports the claim, including expert reports, photographs, or videotapes and […]
Section 4.5-707 – Notice, Hearings, and Review
(a) The procedures for notice, hearings, and judicial review that apply to proceedings under Title 3, Subtitle 2 of the Courts and Judicial Proceedings Article also apply to proceedings to recover from the Guaranty Fund. (b) On receipt of a claim, the Division shall: (1) send a copy of the claim to the registrant alleged to be responsible […]
Section 4.5-708 – Joinder of Proceedings
(a) (1) The Division may join a proceeding on a claim against the Guaranty Fund with a disciplinary proceeding against a registrant under this subtitle if the disciplinary hearing is based on the same facts alleged in the claim. (2) In a consolidated proceeding the claimant is a party, and may participate in the hearing to the extent […]
Section 4.5-709 – Appeals
A party to a proceeding before the Division who is aggrieved by a final decision of the Division in a contested case, as defined in § 10–202 of the State Government Article, may take an appeal as allowed in §§ 10–222 and 10–223 of the State Government Article.
Section 4.5-710 – Payment of Claims
(a) The Division may order payment of a claim against the Guaranty Fund only if: (1) the decision or order of the Division is final in accordance with Title 10, Subtitle 2 of the State Government Article and all rights of appeal are exhausted; or (2) the claimant provides the Division with a certified copy of a final […]