Maryland 2023 Regular Session

Maryland House Bill HB1056 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1056
6	6
7	7	HOUSE BILL 1056
8	8	N1 3lr1372
9	9
10	10	By: Delegate Queen
11	11	Introduced and read first time: February 10, 2023
12	12	Assigned to: Environment and Transportation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Real Property – Warranties – Duration of Warranties and Repair of Defects 2
19	19
20	20	FOR the purpose of altering the expiration date of certain implied warranties for dwellings 3
21	21	and establishing a procedure for the resolution of an alleged breach of an implied 4
22	22	warranty prior to an owner commencing an action regarding the alleged breach; and 5
23	23	generally relating to home warranties. 6
24	24
25	25	BY repealing and reenacting, with amendments, 7
26	26	Article – Real Property 8
27	27	Section 10–201, 10–203, and 10–204 9
28	28	Annotated Code of Maryland 10
29	29	(2015 Replacement Volume and 2022 Supplement) 11
30	30
31	31	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
32	32	That the Laws of Maryland read as follows: 13
33	33
34	34	Article – Real Property 14
35	35
36	36	10–201. 15
37	37
38	38	(a) In this subtitle the following words have the meanings indicated unless 16
39	39	otherwise apparent from context. 17
40	40
41	41	(B) “BUILDING STANDARDS ” MEANS THE MATERIALS AND INSTALLATION 18
42	42	STANDARDS OF THE MARYLAND BUILDING PERFORMANCE STANDARDS, AS 19
43	43	AMENDED BY THE LOCAL JURISDICTION IN WHIC H THE PROPERTY I S LOCATED. 20
44	44
45	45	[(b)] (C) “Improvements” includes every newly constructed private dwelling 21
46	46	unit, and fixture and structure which is made a part of a newly constructed private dwelling 22
47	47	unit at the time of construction by any building contractor or subcontractor. 23 2 HOUSE BILL 1056
48	48
49	49
50	50
51	51	[(c)] (D) “Purchaser” means the original purchaser of improved realty, and the 1
52	52	heirs and personal representatives of the original purchaser. 2
53	53
54	54	[(d)] (E) “Realty” includes both freehold estates and redeemable leasehold 3
55	55	estates. 4
56	56
57	57	[(e)] (F) “Vendor” means any person engaged in the business of erecting or 5
58	58	otherwise creating an improvement on realty, or to whom a completed improvement has 6
59	59	been granted for resale in the course of his business. 7
60	60
61	61	10–203. 8
62	62
63	63	(a) Except as provided in subsection (b) of this section or unless excluded or 9
64	64	modified pursuant to subsection (d) of this section, in every sale, warranties are implied 10
65	65	that, at the time of the delivery of the deed to a completed improvement or at the time of 11
66	66	completion of an improvement not completed when the deed is delivered, the improvement 12
67	67	is: 13
68	68
69	69	(1) Free from faulty materials; 14
70	70
71	71	(2) Constructed according to [sound engineering] BUILDING standards; 15
72	72
73	73	(3) Constructed in a workmanlike manner; and 16
74	74
75	75	(4) Fit for habitation. 17
76	76
77	77	(b) The warranties of subsection (a) of this section do not apply to any condition 18
78	78	that an inspection of the premises would reveal to a reasonably diligent purchaser at the 19
79	79	time the contract is signed. 20
80	80
81	81	(c) If the purchaser, expressly or by implication, makes known to the vendor the 21
82	82	particular purpose for which the improvement is required, and it appears that the 22
83	83	purchaser relies on the vendor’s skill and judgment, there is an implied warranty that the 23
84	84	improvement is reasonably fit for the purpose. 24
85	85
86	86	(d) Neither words in the contract of sale, nor the deed, nor merger of the contract 25
87	87	of sale into the deed is effective to exclude or modify any implied warranty. However, if the 26
88	88	contract of sale pertains to an improvement then completed, an implied warranty may be 27
89	89	excluded or modified wholly or partially by a written instrument, signed by the purchaser, 28
90	90	setting forth in detail the warranty to be excluded or modified, the consent of the purchaser 29
91	91	to exclusion or modification, and the terms of the new agreement with respect to it. 30
92	92
93	93	10–204. 31
94	94	HOUSE BILL 1056 3
95	95
96	96
97	97	(a) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 1
98	98	INDICATED. 2
99	99
100	100	(2) (I) “MAJOR CONSTRUCTION DE FECT” MEANS ACTUAL DAMAGE 3
101	101	TO THE LOAD–BEARING PORTION OF A DWELLING, INCLUDING DAMAGE DUE TO THE 4
102	102	SUBSIDENCE, EXPANSION, OR LATERAL MOVEMENT OF THE SOIL, THAT AFFECTS 5
103	103	THE LOAD–BEARING FUNCTION AND THAT VITALLY AFFECTS OR I S IMMINENTLY 6
104	104	LIKELY TO VITALLY AF FECT THE USE OF THE DWELLING FOR RESIDENTIAL 7
105	105	PURPOSES. 8
106	106
107	107	(II) “MAJOR CONSTRUCTION DE FECT” DOES NOT INCLUDE 9
108	108	DAMAGE DUE TO THE MO VEMENT OF THE SOIL C AUSED BY FLOOD , EARTHQUAKE , OR 10
109	109	OTHER NATURAL DISAST ER. 11
110	110
111	111	(3) “WARRANTY DATE ” MEANS: 12
112	112
113	113	(I) FOR A DWELLING COMPLETED AT THE TIME OF THE 13
114	114	DELIVERY OF THE DEED TO THE ORIGINAL PURC HASER, THE DATE OF DELIVERY OR 14
115	115	THE TAKING OF POSSES SION BY THE ORIGINAL PURCHASER , WHICHEVER OCCURS 15
116	116	FIRST; 16
117	117
118	118	(II) FOR A DWELLING NOT COMPL ETED AT THE TIME OF 17
119	119	DELIVERY OF THE DEED TO THE ORIGINAL PURC HASER, THE DATE OF THE 18
120	120	COMPLETION OR THE TAKING OF POSSESSION BY THE ORIGINAL PURCHASER , 19
121	121	WHICHEVER OCCURS FIR ST; AND 20
122	122
123	123	(III) IN THE CASE OF A STRUCTURAL DEFECT , THE DATE OF 21
124	124	COMPLETION , DELIVERY, OR TAKING OF POSSESSION, WHICHEVER OCCURS FIR ST. 22
125	125
126	126	(B) If any warranty provided for in this subtitle is breached, the court may award 23
127	127	legal or equitable relief, or both, as justice requires. 24
128	128
129	129	[(b)] (C) Unless an express warranty specifies a longer period of time, the 25
130	130	warranties provided for in this subtitle expire: 26
131	131
132	132	(1) [In the case of a dwelling completed at the time of the delivery of the 27
133	133	deed to the original purchaser, one year after the delivery or after the taking of possession 28
134	134	by the original purchaser, whichever occurs first] FOR A DEFECT CAUSED BY FAULTY 29
135	135	WORKMANSHIP OR DEFEC TIVE MATERIALS DUE T O NONCOMPLIANCE WITH 30
136	136	BUILDING STANDARDS, 1 YEAR AFTER THE WARRA NTY DATE; 31
137	137
138	138	(2) [In the case of a dwelling not completed at the time of delivery of the 32
139	139	deed to the original purchaser, one year after the date of the completion or taking of 33
140	140	possession by the original purchaser, whichever occurs first] FOR A DEFECT RESULTING 34 4 HOUSE BILL 1056
141	141
142	142
143	143	FROM FAULTY INSTALLATION OF PLUMBING , ELECTRICAL, OR HEATING AND 1
144	144	COOLING SYSTEMS DUE TO NONCOMPLIANCE WIT H BUILDING STANDARDS , 2 YEARS 2
145	145	AFTER THE WARRANTY D ATE; and 3
146	146
147	147	(3) [In the case of structural defects, two years after the date of completion, 4
148	148	delivery, or taking possession, whichever occurs first] FOR MAJOR CONSTRUCTIO N 5
149	149	DEFECTS DUE TO NONCO MPLIANCE WITH BUILDI NG STANDARDS , 10 YEARS AFTER 6
150	150	THE WARRANTY DATE . 7
151	151
152	152	[(c)] (D) The warranties provided under this section do not expire on the 8
153	153	subsequent sale of a dwelling by the original purchaser to a subsequent purchaser, but 9
154	154	continue to protect the subsequent purchaser until the warranties provided under 10
155	155	subsection [(b)] (C) of this section expire. The warranties provided under this section do 11
156	156	not apply to any defect caused by the original purchaser. 12
157	157
158	158	[(d)] (E) [Any] EXCEPT AS PROVIDED IN SUBSECTION (G)(2) OF THIS 13
159	159	SECTION, ANY action arising under this subtitle shall be commenced within [two] 2 years 14
160	160	after the defect was discovered or should have been discovered, or within [two] 2 years 15
161	161	after the expiration of the warranty, whichever occurs first. 16
162	162
163	163	(F) (1) PRIOR TO COMMENCING A N ACTION UNDER THIS SUBTITLE, AN 17
164	164	OWNER MUST PROVIDE A VENDOR WIT H WRITTEN NOTICE OF THE ALLEGED DEFECT . 18
165	165
166	166	(2) (I) WITHIN 30 DAYS AFTER NOTICE PROVIDED UNDER 19
167	167	PARAGRAPH (1) OF THIS SUBSECTION , A VENDOR MAY REQUEST , AND AN OWNER 20
168	168	SHALL ALLOW , A HOME INSPECTION FO R THE PURPOSES OF TH E PREPARATION OF 21
169	169	AN OFFER TO REPAIR T HE ALLEGED DEFECT . 22
170	170
171	171	(II) ANY DAMAGE TO THE DWE LLING RESULTING FROM AN 23
172	172	INSPECTION PERFORMED BY THE VENDOR MUST B E REPAIRED PROMPTLY BY THE 24
173	173	VENDOR. 25
174	174
175	175	(3) WITHIN 15 DAYS AFTER THE COMPLETION OF AN INSPECTION 26
176	176	PERFORMED IN A CCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION , THE 27
177	177	VENDOR SHALL PROVIDE TO THE OWNER A WRITTEN OFFE R TO REPAIR STATING: 28
178	178
179	179	(I) THE SCOPE OF THE PROP OSED WORK TO BE PERFORMED ; 29
180	180
181	181	(II) A PROPOSED DATE ON WHI CH THE REPAIR WORK MAY 30
182	182	BEGIN; AND 31
183	183
184	184	(III) AN ESTIMATED DATE OF CO MPLETION. 32
185	185	HOUSE BILL 1056 5
186	186
187	187
188	188	(4) IF THE VENDOR AND THE OWNER AGREE TO THE SCOPE O F WORK 1
189	189	PROVIDED UNDER PARAG RAPH (3) OF THIS SUBSECTION , THE VENDOR SHALL 2
190	190	PERFORM THE REPAIR I N ACCORDANCE WITH THE OFFER TO REPAIR . 3
191	191
192	192	(5) THIS SUBSECTION DOES NOT PRECLUDE AN OWNER FROM 4
193	193	SECURING A SEPARATE, INDEPENDENT INSPECTION BY A CONTRACTOR OR FROM 5
194	194	NEGOTIATING WITH THE VENDOR FOR A DIFFERE NT SCOPE OF WORK . 6
195	195
196	196	(G) (1) AN OWNER MAY COMMENCE AN ACTION FOR A BREACH OF 7
197	197	WARRANTY UNDER THIS SUBTITLE IF: 8
198	198
199	199	(I) THE VENDOR DOES NOT REQUEST OR PERFORM AN 9
200	200	INSPECTION UNDER SUBSECTION (F)(2) OF THIS SECTION; 10
201	201
202	202	(II) THE VENDOR FAILS TO MAKE AN OFFER TO REPAIR A S 11
203	203	REQUIRED UNDE R SUBSECTION (F)(3) OF THIS SECTION; OR 12
204	204
205	205	(III) THE PARTIES CANNOT AG REE TO THE TERMS PROVIDED IN 13
206	206	THE OFFER TO REPAIR REQUIRED UNDE R SUBSECTION (F)(3) OF THIS SECTION. 14
207	207
208	208	(2) THE STATUTE OF LIMITA TIONS UNDER THIS SEC TION SHALL BE 15
209	209	TOLLED FOR 180 DAYS FROM THE DATE T HAT THE WRITTEN NOTICE REQUI RED 16
210	210	UNDER SUBSECTION (F)(1) OF THIS SECTION IS POSTMARKED , OR, IF THE WRITTEN 17
211	211	NOTICE IS NOT SENT BY FIRST–CLASS MAIL, THE DATE THAT THE NO TICE IS 18
212	212	RECEIVED BY THE VEND OR. 19
213	213
214	214	(H) THE PROVISIONS OF THIS SECTION MAY NOT BE WAIVED BY CON TRACT 20
215	215	OR AGREEMENT . 21
216	216
217	217	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
218	218	October 1, 2023. 23