EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1056*
HOUSE BILL 1056
N1 3lr1372
By: Delegate Queen
Introduced and read first time: February 10, 2023
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Warranties – Duration of Warranties and Repair of Defects 2
FOR the purpose of altering the expiration date of certain implied warranties for dwellings 3
and establishing a procedure for the resolution of an alleged breach of an implied 4
warranty prior to an owner commencing an action regarding the alleged breach; and 5
generally relating to home warranties. 6
BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 10–201, 10–203, and 10–204 9
Annotated Code of Maryland 10
(2015 Replacement Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Real Property 14
10–201. 15
(a) In this subtitle the following words have the meanings indicated unless 16
otherwise apparent from context. 17
(B) “BUILDING STANDARDS ” MEANS THE MATERIALS AND INSTALLATION 18
STANDARDS OF THE MARYLAND BUILDING PERFORMANCE STANDARDS, AS 19
AMENDED BY THE LOCAL JURISDICTION IN WHIC H THE PROPERTY I S LOCATED. 20
[(b)] (C) “Improvements” includes every newly constructed private dwelling 21
unit, and fixture and structure which is made a part of a newly constructed private dwelling 22
unit at the time of construction by any building contractor or subcontractor. 23 2 HOUSE BILL 1056
[(c)] (D) “Purchaser” means the original purchaser of improved realty, and the 1
heirs and personal representatives of the original purchaser. 2
[(d)] (E) “Realty” includes both freehold estates and redeemable leasehold 3
estates. 4
[(e)] (F) “Vendor” means any person engaged in the business of erecting or 5
otherwise creating an improvement on realty, or to whom a completed improvement has 6
been granted for resale in the course of his business. 7
10–203. 8
(a) Except as provided in subsection (b) of this section or unless excluded or 9
modified pursuant to subsection (d) of this section, in every sale, warranties are implied 10
that, at the time of the delivery of the deed to a completed improvement or at the time of 11
completion of an improvement not completed when the deed is delivered, the improvement 12
is: 13
(1) Free from faulty materials; 14
(2) Constructed according to [sound engineering] BUILDING standards; 15
(3) Constructed in a workmanlike manner; and 16
(4) Fit for habitation. 17
(b) The warranties of subsection (a) of this section do not apply to any condition 18
that an inspection of the premises would reveal to a reasonably diligent purchaser at the 19
time the contract is signed. 20
(c) If the purchaser, expressly or by implication, makes known to the vendor the 21
particular purpose for which the improvement is required, and it appears that the 22
purchaser relies on the vendor’s skill and judgment, there is an implied warranty that the 23
improvement is reasonably fit for the purpose. 24
(d) Neither words in the contract of sale, nor the deed, nor merger of the contract 25
of sale into the deed is effective to exclude or modify any implied warranty. However, if the 26
contract of sale pertains to an improvement then completed, an implied warranty may be 27
excluded or modified wholly or partially by a written instrument, signed by the purchaser, 28
setting forth in detail the warranty to be excluded or modified, the consent of the purchaser 29
to exclusion or modification, and the terms of the new agreement with respect to it. 30
10–204. 31
HOUSE BILL 1056 3
(a) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) (I) “MAJOR CONSTRUCTION DE FECT” MEANS ACTUAL DAMAGE 3
TO THE LOAD–BEARING PORTION OF A DWELLING, INCLUDING DAMAGE DUE TO THE 4
SUBSIDENCE, EXPANSION, OR LATERAL MOVEMENT OF THE SOIL, THAT AFFECTS 5
THE LOAD–BEARING FUNCTION AND THAT VITALLY AFFECTS OR I S IMMINENTLY 6
LIKELY TO VITALLY AF FECT THE USE OF THE DWELLING FOR RESIDENTIAL 7
PURPOSES. 8
(II) “MAJOR CONSTRUCTION DE FECT” DOES NOT INCLUDE 9
DAMAGE DUE TO THE MO VEMENT OF THE SOIL C AUSED BY FLOOD , EARTHQUAKE , OR 10
OTHER NATURAL DISAST ER. 11
(3) “WARRANTY DATE ” MEANS: 12
(I) FOR A DWELLING COMPLETED AT THE TIME OF THE 13
DELIVERY OF THE DEED TO THE ORIGINAL PURC HASER, THE DATE OF DELIVERY OR 14
THE TAKING OF POSSES SION BY THE ORIGINAL PURCHASER , WHICHEVER OCCURS 15
FIRST; 16
(II) FOR A DWELLING NOT COMPL ETED AT THE TIME OF 17
DELIVERY OF THE DEED TO THE ORIGINAL PURC HASER, THE DATE OF THE 18
COMPLETION OR THE TAKING OF POSSESSION BY THE ORIGINAL PURCHASER , 19
WHICHEVER OCCURS FIR ST; AND 20
(III) IN THE CASE OF A STRUCTURAL DEFECT , THE DATE OF 21
COMPLETION , DELIVERY, OR TAKING OF POSSESSION, WHICHEVER OCCURS FIR ST. 22
(B) If any warranty provided for in this subtitle is breached, the court may award 23
legal or equitable relief, or both, as justice requires. 24
[(b)] (C) Unless an express warranty specifies a longer period of time, the 25
warranties provided for in this subtitle expire: 26
(1) [In the case of a dwelling completed at the time of the delivery of the 27
deed to the original purchaser, one year after the delivery or after the taking of possession 28
by the original purchaser, whichever occurs first] FOR A DEFECT CAUSED BY FAULTY 29
WORKMANSHIP OR DEFEC TIVE MATERIALS DUE T O NONCOMPLIANCE WITH 30
BUILDING STANDARDS, 1 YEAR AFTER THE WARRA NTY DATE; 31
(2) [In the case of a dwelling not completed at the time of delivery of the 32
deed to the original purchaser, one year after the date of the completion or taking of 33
possession by the original purchaser, whichever occurs first] FOR A DEFECT RESULTING 34 4 HOUSE BILL 1056
FROM FAULTY INSTALLATION OF PLUMBING , ELECTRICAL, OR HEATING AND 1
COOLING SYSTEMS DUE TO NONCOMPLIANCE WIT H BUILDING STANDARDS , 2 YEARS 2
AFTER THE WARRANTY D ATE; and 3
(3) [In the case of structural defects, two years after the date of completion, 4
delivery, or taking possession, whichever occurs first] FOR MAJOR CONSTRUCTIO N 5
DEFECTS DUE TO NONCO MPLIANCE WITH BUILDI NG STANDARDS , 10 YEARS AFTER 6
THE WARRANTY DATE . 7
[(c)] (D) The warranties provided under this section do not expire on the 8
subsequent sale of a dwelling by the original purchaser to a subsequent purchaser, but 9
continue to protect the subsequent purchaser until the warranties provided under 10
subsection [(b)] (C) of this section expire. The warranties provided under this section do 11
not apply to any defect caused by the original purchaser. 12
[(d)] (E) [Any] EXCEPT AS PROVIDED IN SUBSECTION (G)(2) OF THIS 13
SECTION, ANY action arising under this subtitle shall be commenced within [two] 2 years 14
after the defect was discovered or should have been discovered, or within [two] 2 years 15
after the expiration of the warranty, whichever occurs first. 16
(F) (1) PRIOR TO COMMENCING A N ACTION UNDER THIS SUBTITLE, AN 17
OWNER MUST PROVIDE A VENDOR WIT H WRITTEN NOTICE OF THE ALLEGED DEFECT . 18
(2) (I) WITHIN 30 DAYS AFTER NOTICE PROVIDED UNDER 19
PARAGRAPH (1) OF THIS SUBSECTION , A VENDOR MAY REQUEST , AND AN OWNER 20
SHALL ALLOW , A HOME INSPECTION FO R THE PURPOSES OF TH E PREPARATION OF 21
AN OFFER TO REPAIR T HE ALLEGED DEFECT . 22
(II) ANY DAMAGE TO THE DWE LLING RESULTING FROM AN 23
INSPECTION PERFORMED BY THE VENDOR MUST B E REPAIRED PROMPTLY BY THE 24
VENDOR. 25
(3) WITHIN 15 DAYS AFTER THE COMPLETION OF AN INSPECTION 26
PERFORMED IN A CCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION , THE 27
VENDOR SHALL PROVIDE TO THE OWNER A WRITTEN OFFE R TO REPAIR STATING: 28
(I) THE SCOPE OF THE PROP OSED WORK TO BE PERFORMED ; 29
(II) A PROPOSED DATE ON WHI CH THE REPAIR WORK MAY 30
BEGIN; AND 31
(III) AN ESTIMATED DATE OF CO MPLETION. 32
HOUSE BILL 1056 5
(4) IF THE VENDOR AND THE OWNER AGREE TO THE SCOPE O F WORK 1
PROVIDED UNDER PARAG RAPH (3) OF THIS SUBSECTION , THE VENDOR SHALL 2
PERFORM THE REPAIR I N ACCORDANCE WITH THE OFFER TO REPAIR . 3
(5) THIS SUBSECTION DOES NOT PRECLUDE AN OWNER FROM 4
SECURING A SEPARATE, INDEPENDENT INSPECTION BY A CONTRACTOR OR FROM 5
NEGOTIATING WITH THE VENDOR FOR A DIFFERE NT SCOPE OF WORK . 6
(G) (1) AN OWNER MAY COMMENCE AN ACTION FOR A BREACH OF 7
WARRANTY UNDER THIS SUBTITLE IF: 8
(I) THE VENDOR DOES NOT REQUEST OR PERFORM AN 9
INSPECTION UNDER SUBSECTION (F)(2) OF THIS SECTION; 10
(II) THE VENDOR FAILS TO MAKE AN OFFER TO REPAIR A S 11
REQUIRED UNDE R SUBSECTION (F)(3) OF THIS SECTION; OR 12
(III) THE PARTIES CANNOT AG REE TO THE TERMS PROVIDED IN 13
THE OFFER TO REPAIR REQUIRED UNDE R SUBSECTION (F)(3) OF THIS SECTION. 14
(2) THE STATUTE OF LIMITA TIONS UNDER THIS SEC TION SHALL BE 15
TOLLED FOR 180 DAYS FROM THE DATE T HAT THE WRITTEN NOTICE REQUI RED 16
UNDER SUBSECTION (F)(1) OF THIS SECTION IS POSTMARKED , OR, IF THE WRITTEN 17
NOTICE IS NOT SENT BY FIRST–CLASS MAIL, THE DATE THAT THE NO TICE IS 18
RECEIVED BY THE VEND OR. 19
(H) THE PROVISIONS OF THIS SECTION MAY NOT BE WAIVED BY CON TRACT 20
OR AGREEMENT . 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2023. 23