EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0124*
HOUSE BILL 124
N1 5lr0614
HB 1408/24 – ENT (PRE–FILED) CF SB 160
By: Delegate Rosenberg Delegates Rosenberg and Boyce
Requested: July 20, 2024
Introduced and read first time: January 8, 2025
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 11, 2025
CHAPTER ______
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 or assignee of certain residential 4
property to rescind a contract of sale under certain circumstances; establishing that 5
a buyer an assignee is entitled to a refund of any deposit paid for the purchase of 6
residential real property under certain circumstances; requiring that a contract of 7
sale comply with the requirements of this Act; and generally relating to residential 8
property and the 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 2 HOUSE BILL 124
Article – Real Property 1
10–715. 2
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(2) “RESIDENTIAL PROPERTY ” MEANS PROPERTY IMPRO VED BY 5
FOUR OR FEWER SINGLE –FAMILY DWELLING UNIT S THAT ARE DESIGNED 6
PRINCIPALLY AND ARE INTENDED FOR HUMAN H ABITATION. 7
(3) “WHOLESALE BUYER ” MEANS A PERSON THAT ENTERS INTO A 8
CONTRACT OF SALE WIT H AN OWNER OF OWNER –OCCUPIED RESIDENTIAL 9
PROPERTY IN ORDER TO ASSIGN THE CONTRACT TO ANOTHER PERSON FO R A 10
MONETARY ASSIGNMENT FEE. 11
(4) “WHOLESALE SELLER ” MEANS A PERSON THAT , WITHOUT 12
HOLDING LEGAL TITLE TO OWNER–OCCUPIED RESIDENTIAL PROPERTY: 13
(I) ENTERS INTO A CONTRAC T OF SALE FOR THE PR OPERTY; 14
AND 15
(II) ASSIGNS THE PERSON ’S BENEFICIAL INTERES T IN THE 16
PROPERTY TO ANOTHER . 17
(B) THIS SECTION DOES NOT APPLY TO A SALE PROC EEDING UNDER § 18
14–215 OF THE MARYLAND RULES. 19
(C) (1) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 20
PROPERTY, A WHOLESALE BUYER SH ALL DISCLOSE IN WRIT ING TO THE OWNER OF 21
THE PROPERTY THAT TH E WHOLESALE BUYER MA Y ASSIGN THE CONTRAC T OF SALE 22
TO ANOTHER P ERSON. 23
(2) BEFORE ENTERING INTO ASSIGNING A CONTRACT OF SALE F OR 24
RESIDENTIAL PROPERTY , A WHOLESALE SELLER S HALL DISCLOSE IN WRI TING TO A 25
PROSPECTIVE BUYER ASSIGNEE THAT THE WHOLESALE S ELLER HOLDS AN 26
EQUITABLE INTEREST I N THE PROPERTY AND M AY NOT BE ABLE TO CONVEY TITLE 27
TO THE PROPERTY . 28
(D) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR ANY 29
OTHER AGREEMENT , AN OWNER OF RESIDENT IAL PROPERTY MAY RES CIND A 30
CONTRACT OF SALE TO A WHOLESALE BUYER , OR THE ASSIGNEE OR S UCCESSOR OF 31 HOUSE BILL 124 3
A WHOLESALE BUYER , WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF THE 1
WHOLESALE BUYER : 2
(1) DOES NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 3
REQUIREMENTS OF THIS SECTION; AND 4
(2) ASSIGNS THE CONTRACT OF SALE. 5
(E) (1) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR 6
ANY OTHER AGREEMENT , A BUYER AN ASSIGNEE MAY RESCIND A THE AGREEMENT 7
TO PURCHASE UNDER TH E ASSIGNED CONTRACT OF SALE FOR RESIDENTIAL 8
PROPERTY WITHOUT PEN ALTY AT ANY TIME BEF ORE CLOSING IF A WHO LESALE 9
SELLER DOES NOT PROV IDE NOTICE IN ACCORD ANCE WITH THE REQUIREMENTS OF 10
THIS SECTION. 11
(2) A BUYER AN ASSIGNEE THAT RESCINDS A CONT RACT UNDER 12
PARAGRAPH (1) OF THIS SUBSECTION I S ENTITLED TO A REFU ND OF ANY DEPOSIT 13
PAID FOR THE IN CONNECTION WITH T HE ASSIGNMENT OF A C ONTRACT OF SALE OF 14
THE RESIDENTIAL PROPERTY. 15
14–117. 16
(e) A contract of sale shall also comply with the following provisions, if applicable: 17
(22) Section 6–824 of the Environment Article (disclosure pertaining to 18
obligations to perform risk reduction); [and] 19
(23) Section 10–711 of this article (notice on zones of dewatering influence); 20
AND 21
(24) SECTION 10–715 OF THIS ARTICLE (DISCLOSURE PERTAININ G TO 22
ASSIGNMENT OF CONTRA CTS OF SALE BY WHOLE SALE BUYERS AND WHOL ESALE 23
SELLERS). 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 25
apply only prospectively and may not be applied or interpreted to have any effect on or 26
application to any contracts of sale for residential property executed before the effective 27
date of this Act. 28
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2025. 30