EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0124*
HOUSE BILL 124
N1 5lr0614
HB 1408/24 – ENT (PRE–FILED) CF SB 160
By: Delegate Rosenberg
Requested: July 20, 2024
Introduced and read first time: January 8, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Residential Property – Assignment of Contracts of Sale – Disclosure 2
Requirements and Rescission 3
FOR the purpose of authorizing a seller and buyer of certain residential property to rescind 4
a contract of sale under certain circumstances; establishing that a buyer is entitled 5
to a refund of any deposit paid for the purchase of residential real property under 6
certain circumstances; requiring that a contract of sale comply with the 7
requirements of this Act; and generally relating to residential property and the 8
assignment and rescission of contracts of sale. 9
BY adding to 10
Article – Real Property 11
Section 10–715 and 14–117(e)(24) 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 14–117(e)(22) and (23) 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Real Property 22
10–715. 23
2 HOUSE BILL 124
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “RESIDENTIAL PROPERTY ” MEANS PROPERTY IMPRO VED BY 3
FOUR OR FEWER SIN GLE–FAMILY DWELLING UNIT S THAT ARE DESIGNED 4
PRINCIPALLY AND ARE INTENDED FOR HUMAN H ABITATION. 5
(3) “WHOLESALE BUYER ” MEANS A PERSON THAT ENTERS INTO A 6
CONTRACT OF SALE WIT H AN OWNER OF OWNER –OCCUPIED RESIDENTIAL 7
PROPERTY IN ORDER TO ASSIGN THE CONTRACT TO ANOTHER PERSON FO R A 8
MONETARY ASSIGNMENT FEE. 9
(4) “WHOLESALE SELLER ” MEANS A PERSON THAT , WITHOUT 10
HOLDING LEGAL TITLE TO OWNER–OCCUPIED RESIDENTIAL PROPERTY: 11
(I) ENTERS INTO A CONTRAC T OF SALE FOR THE PR OPERTY; 12
AND 13
(II) ASSIGNS THE PERSON ’S BENEFICIAL INTEREST IN THE 14
PROPERTY TO ANOTHER . 15
(B) THIS SECTION DOES NOT APPLY TO A SALE PROC EEDING UNDER § 16
14–215 OF THE MARYLAND RULES. 17
(C) (1) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 18
PROPERTY, A WHOLESALE BUYER SH ALL DISCLOSE IN WRITING TO THE OWNER OF 19
THE PROPERTY THAT TH E WHOLESALE BUYER MA Y ASSIGN THE CONTRAC T OF SALE 20
TO ANOTHER PERSON . 21
(2) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 22
PROPERTY, A WHOLESALE SELLER S HALL DISCLOSE IN WRI TING TO A PROSPECTIV E 23
BUYER TH AT THE WHOLESALE SEL LER HOLDS AN EQUITAB LE INTEREST IN THE 24
PROPERTY AND MAY NOT BE ABLE TO CONVEY TI TLE TO THE PROPERTY . 25
(D) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR ANY 26
OTHER AGREEMENT , AN OWNER OF RESIDENT IAL PROPERTY MAY RES CIND A 27
CONTRACT OF SALE TO A WHOL ESALE BUYER, OR THE ASSIGNEE OR S UCCESSOR OF 28
A WHOLESALE BUYER , WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF THE 29
WHOLESALE BUYER : 30
(1) DOES NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 31
REQUIREMENTS OF THIS SECTION; AND 32
(2) ASSIGNS THE CONTRACT OF SALE . 33 HOUSE BILL 124 3
(E) (1) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR 1
ANY OTHER AGREEMENT , A BUYER MAY RESCIND A CONTRACT OF SALE F OR 2
RESIDENTIAL PROPERTY WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF A 3
WHOLESALE SELLER DOE S NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 4
REQUIREMENTS OF THIS SECTION. 5
(2) A BUYER THAT RESCINDS A CONTRACT UNDER PAR AGRAPH (1) OF 6
THIS SUBSECTION IS E NTITLED TO A REFUND OF ANY DEPOSIT PAID FOR THE 7
PROPERTY. 8
14–117. 9
(e) A contract of sale shall also comply with the following provisions, if applicable: 10
(22) Section 6–824 of the Environment Article (disclosure pertaining to 11
obligations to perform risk reduction); [and] 12
(23) Section 10–711 of this article (notice on zones of dewatering influence); 13
AND 14
(24) SECTION 10–715 OF THIS ARTICLE (DISCLOSURE PERTAININ G TO 15
ASSIGNMENT OF CONTRA CTS OF SALE BY WHOLE SALE BUYERS AND WHOL ESALE 16
SELLERS). 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 18
apply only prospectively and may not be applied or interpreted to have any effect on or 19
application to any contracts of sale for residential property executed before the effective 20
date of this Act. 21
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2025. 23