Maryland 2024 Regular Session

Maryland House Bill HB1408

Introduced
2/9/24  
Refer
2/9/24  
Report Pass
3/16/24  
Engrossed
3/18/24  

Caption

Residential Property – Assignment of Contracts of Sale – Disclosure Requirements and Rescission

Impact

If enacted, HB 1408 would establish legal parameters around the rescission of contracts, offering protections not previously guaranteed under state law. The bill outlines the responsibilities of escrow agents in handling trust money during these transactions, ensuring that refunds are issued to buyers who rescind contracts under the specified conditions. Additionally, it mandates that contracts comply with the new disclosure requirements for assignments, thereby enhancing the overall integrity of real estate dealings.

Summary

House Bill 1408 addresses the assignment of contracts for the sale of residential property in Maryland, introducing new requirements for disclosures related to such transactions. The bill aims to protect buyers and sellers by allowing either party to rescind a contract of sale under specific circumstances, particularly when a contract is assigned to a third party without proper disclosure. This measure seeks to increase transparency and reduce the risk of potential abuses in the residential real estate market, especially concerning wholesale transactions where properties are flipped frequently.

Sentiment

The general sentiment surrounding HB 1408 was positive, with strong support from legislators who prioritized consumer protection in real estate transactions. Stakeholders, including real estate professionals, indicated that the bill would create a more equitable playing field for buyers and help prevent conflicts between buyers, sellers, and wholesalers. However, some concerns were raised about the practicality of implementing these regulations and whether they might add unnecessary complexity to the current real estate framework.

Contention

Notable points of contention surfaced around the implications the bill had for wholesale buyers. While the intention was to safeguard consumers, critics argued that the strict disclosure requirements might hinder legitimate wholesale operations, potentially stifling a segment of the real estate market that relies on quick transactions. This tension highlighted the ongoing debate about striking a balance between consumer protection and maintaining a vibrant and flexible housing market.

Companion Bills

No companion bills found.

Previously Filed As

MD SB485

Frederick County - Residential Property Sales - Contract Disclosures

MD HB281

Residential Property - Sales Contracts - Disclosures

MD HB1121

Real Property - Residential Contracts of Sale - Buyer Privacy

MD HB1235

Real Estate - Real Estate Brokerage Services and Termination of Residential Real Estate Contracts (The Anthony Moorman Act)

MD SB651

Real Estate - Real Estate Brokerage Services and Termination of Residential Real Estate Contracts (The Anthony Moorman Act)

MD HB821

Montgomery County - New Single-Family Residential Real Property Sales - Contract Requirements MC 17-23

MD HB52

Condominiums - Sales Contracts - Asbestos Disclosure

MD HB425

Real Property - Land Installment Contracts - Requirements and Vendor Duties and Limitations

MD HB837

Condominiums and Homeowners Associations - Residential Property Foreclosure Sales - Purchaser Requirements

MD HB474

Sale of Residential Real Property - Offers to Purchase and Transfer Tax

Similar Bills

CA AB968

Single-family residential property: disclosures.

TX HB4063

Relating to the filing and release of record of a unilateral memorandum of contract concerning residential property.

NJ A1227

Requires provisions regarding sellers' obligation to deliver marketable and insurable title in certain residential real estate contracts of sale.

NJ A2041

Requires provisions regarding sellers' obligation to deliver marketable and insurable title in certain residential real estate contracts of sale.

CA SB1189

Contracting business: home improvement: residential property.

CA AB1703

Residential real property: sale of rental properties: right of first offer.

CA AB2503

Landlords and tenants: California Law Revision Commission: study.

TX HB3308

Relating to the formation of special districts for the purpose of storm mitigation and resiliency, energy, water, and indoor air utilizing private funding sources; providing thereto the ability of specific entities to use conduit financing; and establishing specific consumer protection provisions for residential property owners related to the program.