Maryland 2025 Regular Session

Maryland House Bill HB124 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0124
9	6
10	7		HOUSE BILL 124
11	8		N1 5lr0614
12	9		HB 1408/24 – ENT (PRE–FILED) CF SB 160
13		-	By: Delegate Rosenberg ~~Delegates Rosenberg and Boyce~~
	10	+	By: Delegate Rosenberg
14	11		Requested: July 20, 2024
15	12		Introduced and read first time: January 8, 2025
16	13		Assigned to: Environment and Transportation
17		-	Committee Report: Favorable with amendments
18		-	House action: Adopted
19		-	Read second time: February 11, 2025
20	14
21		-	~~CHAPTER ______~~
	15	+	A BILL ENTITLED
22	16
23	17		AN ACT concerning 1
24	18
25	19		Residential Property – Assignment of Contracts of Sale – Disclosure 2
26	20		Requirements and Rescission 3
27	21
28		-	FOR the purpose of authorizing a seller and buyer ~~or assignee~~ of certain residential 4
29		-	~~property to rescind~~ a contract of sale under certain circumstances; establishing that 5
30		-	~~a buyer an assignee is entitled~~ to a refund of any deposit paid for the purchase of 6
31		-	~~residential real property under~~ certain circumstances; requiring that a contract of 7
32		-	~~sale comply with the~~ requirements of this Act; and generally relating to residential 8
33		-	~~property and the~~ assignment and rescission of contracts of sale. 9
	22	+	FOR the purpose of authorizing a seller and buyer of certain residential property to rescind 4
	23	+	a contract of sale under certain circumstances; establishing that a buyer is entitled 5
	24	+	to a refund of any deposit paid for the purchase of residential real property under 6
	25	+	certain circumstances; requiring that a contract of sale comply with the 7
	26	+	requirements of this Act; and generally relating to residential property and the 8
	27	+	assignment and rescission of contracts of sale. 9
34	28
35	29		BY adding to 10
36	30		Article – Real Property 11
37	31		Section 10–715 and 14–117(e)(24) 12
38	32		Annotated Code of Maryland 13
39	33		(2023 Replacement Volume and 2024 Supplement) 14
40	34
41	35		BY repealing and reenacting, with amendments, 15
42	36		Article – Real Property 16
43	37		Section 14–117(e)(22) and (23) 17
44	38		Annotated Code of Maryland 18
45	39		(2023 Replacement Volume and 2024 Supplement) 19
46	40
47	41		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
48		-	That the Laws of Maryland read as follows: 21 2 HOUSE BILL 124
	42	+	That the Laws of Maryland read as follows: 21
	43	+
	44	+	Article – Real Property 22
	45	+
	46	+	10–715. 23
	47	+	2 HOUSE BILL 124
	48	+
	49	+
	50	+	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
	51	+	INDICATED. 2
	52	+
	53	+	(2) “RESIDENTIAL PROPERTY ” MEANS PROPERTY IMPRO VED BY 3
	54	+	FOUR OR FEWER SIN GLE–FAMILY DWELLING UNIT S THAT ARE DESIGNED 4
	55	+	PRINCIPALLY AND ARE INTENDED FOR HUMAN H ABITATION. 5
	56	+
	57	+	(3) “WHOLESALE BUYER ” MEANS A PERSON THAT ENTERS INTO A 6
	58	+	CONTRACT OF SALE WIT H AN OWNER OF OWNER –OCCUPIED RESIDENTIAL 7
	59	+	PROPERTY IN ORDER TO ASSIGN THE CONTRACT TO ANOTHER PERSON FO R A 8
	60	+	MONETARY ASSIGNMENT FEE. 9
	61	+
	62	+	(4) “WHOLESALE SELLER ” MEANS A PERSON THAT , WITHOUT 10
	63	+	HOLDING LEGAL TITLE TO OWNER–OCCUPIED RESIDENTIAL PROPERTY: 11
	64	+
	65	+	(I) ENTERS INTO A CONTRAC T OF SALE FOR THE PR OPERTY; 12
	66	+	AND 13
	67	+
	68	+	(II) ASSIGNS THE PERSON ’S BENEFICIAL INTEREST IN THE 14
	69	+	PROPERTY TO ANOTHER . 15
	70	+
	71	+	(B) THIS SECTION DOES NOT APPLY TO A SALE PROC EEDING UNDER § 16
	72	+	14–215 OF THE MARYLAND RULES. 17
	73	+
	74	+	(C) (1) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 18
	75	+	PROPERTY, A WHOLESALE BUYER SH ALL DISCLOSE IN WRITING TO THE OWNER OF 19
	76	+	THE PROPERTY THAT TH E WHOLESALE BUYER MA Y ASSIGN THE CONTRAC T OF SALE 20
	77	+	TO ANOTHER PERSON . 21
	78	+
	79	+	(2) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 22
	80	+	PROPERTY, A WHOLESALE SELLER S HALL DISCLOSE IN WRI TING TO A PROSPECTIV E 23
	81	+	BUYER TH AT THE WHOLESALE SEL LER HOLDS AN EQUITAB LE INTEREST IN THE 24
	82	+	PROPERTY AND MAY NOT BE ABLE TO CONVEY TI TLE TO THE PROPERTY . 25
	83	+
	84	+	(D) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR ANY 26
	85	+	OTHER AGREEMENT , AN OWNER OF RESIDENT IAL PROPERTY MAY RES CIND A 27
	86	+	CONTRACT OF SALE TO A WHOL ESALE BUYER, OR THE ASSIGNEE OR S UCCESSOR OF 28
	87	+	A WHOLESALE BUYER , WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF THE 29
	88	+	WHOLESALE BUYER : 30
	89	+
	90	+	(1) DOES NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 31
	91	+	REQUIREMENTS OF THIS SECTION; AND 32
	92	+
	93	+	(2) ASSIGNS THE CONTRACT OF SALE . 33 HOUSE BILL 124 3
49	94
50	95
51	96
52		-	Article – Real Property 1
	97	+	(E) (1) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR 1
	98	+	ANY OTHER AGREEMENT , A BUYER MAY RESCIND A CONTRACT OF SALE F OR 2
	99	+	RESIDENTIAL PROPERTY WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF A 3
	100	+	WHOLESALE SELLER DOE S NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 4
	101	+	REQUIREMENTS OF THIS SECTION. 5
53	102
54		-	10–715. 2
	103	+	(2) A BUYER THAT RESCINDS A CONTRACT UNDER PAR AGRAPH (1) OF 6
	104	+	THIS SUBSECTION IS E NTITLED TO A REFUND OF ANY DEPOSIT PAID FOR THE 7
	105	+	PROPERTY. 8
55	106
56		-	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
57		-	INDICATED. 4
	107	+	14–117. 9
58	108
59		-	(2) “RESIDENTIAL PROPERTY ” MEANS PROPERTY IMPRO VED BY 5
60		-	FOUR OR FEWER SINGLE –FAMILY DWELLING UNIT S THAT ARE DESIGNED 6
61		-	PRINCIPALLY AND ARE INTENDED FOR HUMAN H ABITATION. 7
	109	+	(e) A contract of sale shall also comply with the following provisions, if applicable: 10
62	110
63		-	(3) “WHOLESALE BUYER ” MEANS A PERSON THAT ENTERS INTO A 8
64		-	CONTRACT OF SALE WIT H AN OWNER OF OWNER –OCCUPIED RESIDENTIAL 9
65		-	PROPERTY IN ORDER TO ASSIGN THE CONTRACT TO ANOTHER PERSON FO R A 10
66		-	MONETARY ASSIGNMENT FEE. 11
	111	+	(22) Section 6–824 of the Environment Article (disclosure pertaining to 11
	112	+	obligations to perform risk reduction); [and] 12
67	113
68		-	(4) ~~“WHOLESALE SELLER ” MEANS A PERSON THAT , WITHOUT 12~~
69		-	~~HOLDING LEGAL TITLE TO OWNER–OCCUPIED RESIDENTIAL PROPERTY: 13~~
	114	+	(23) Section 10–711 of this article (notice on zones of dewatering influence); 13
	115	+	AND 14
70	116
71		-	(I) ENTERS INTO A CONTRAC T OF SALE FOR THE PR OPERTY; 14
72		-	AND 15
	117	+	(24) SECTION 10–715 OF THIS ARTICLE (DISCLOSURE PERTAININ G TO 15
	118	+	ASSIGNMENT OF CONTRA CTS OF SALE BY WHOLE SALE BUYERS AND WHOL ESALE 16
	119	+	SELLERS). 17
73	120
74		-	(II) ASSIGNS THE PERSON ’S BENEFICIAL INTERES T IN THE 16
75		-	PROPERTY TO ANOTHER . 17
	121	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 18
	122	+	apply only prospectively and may not be applied or interpreted to have any effect on or 19
	123	+	application to any contracts of sale for residential property executed before the effective 20
	124	+	date of this Act. 21
76	125
77		-	(B) THIS SECTION DOES NOT APPLY TO A SALE PROC EEDING UNDER § 18
78		-	14–215 OF THE MARYLAND RULES. 19
79		-
80		-	(C) (1) BEFORE ENTERING INTO A CONTRACT OF SALE F OR RESIDENTIAL 20
81		-	PROPERTY, A WHOLESALE BUYER SH ALL DISCLOSE IN WRIT ING TO THE OWNER OF 21
82		-	THE PROPERTY THAT TH E WHOLESALE BUYER MA Y ASSIGN THE CONTRAC T OF SALE 22
83		-	TO ANOTHER P ERSON. 23
84		-
85		-	(2) BEFORE ENTERING INTO ASSIGNING A CONTRACT OF SALE F OR 24
86		-	RESIDENTIAL PROPERTY , A WHOLESALE SELLER S HALL DISCLOSE IN WRI TING TO A 25
87		-	PROSPECTIVE BUYER ASSIGNEE THAT THE WHOLESALE S ELLER HOLDS AN 26
88		-	EQUITABLE INTEREST I N THE PROPERTY AND M AY NOT BE ABLE TO CONVEY TITLE 27
89		-	TO THE PROPERTY . 28
90		-
91		-	(D) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR ANY 29
92		-	OTHER AGREEMENT , AN OWNER OF RESIDENT IAL PROPERTY MAY RES CIND A 30
93		-	CONTRACT OF SALE TO A WHOLESALE BUYER , OR THE ASSIGNEE OR S UCCESSOR OF 31 HOUSE BILL 124 3
94		-
95		-
96		-	A WHOLESALE BUYER , WITHOUT PENALTY AT A NY TIME BEFORE CLOSI NG IF THE 1
97		-	WHOLESALE BUYER : 2
98		-
99		-	(1) DOES NOT PROVIDE NOTI CE IN ACCORDANCE WIT H THE 3
100		-	REQUIREMENTS OF THIS SECTION; AND 4
101		-
102		-	(2) ASSIGNS THE CONTRACT OF SALE. 5
103		-
104		-	(E) (1) NOTWITHSTANDING ANY P ROVISION OF A CONTRA CT OF SALE OR 6
105		-	ANY OTHER AGREEMENT , A BUYER AN ASSIGNEE MAY RESCIND A THE AGREEMENT 7
106		-	TO PURCHASE UNDER TH E ASSIGNED CONTRACT OF SALE FOR RESIDENTIAL 8
107		-	PROPERTY WITHOUT PEN ALTY AT ANY TIME BEF ORE CLOSING IF A WHO LESALE 9
108		-	SELLER DOES NOT PROV IDE NOTICE IN ACCORD ANCE WITH THE REQUIREMENTS OF 10
109		-	THIS SECTION. 11
110		-
111		-	(2) A BUYER AN ASSIGNEE THAT RESCINDS A CONT RACT UNDER 12
112		-	PARAGRAPH (1) OF THIS SUBSECTION I S ENTITLED TO A REFU ND OF ANY DEPOSIT 13
113		-	PAID FOR THE IN CONNECTION WITH T HE ASSIGNMENT OF A C ONTRACT OF SALE OF 14
114		-	THE RESIDENTIAL PROPERTY. 15
115		-
116		-	14–117. 16
117		-
118		-	(e) A contract of sale shall also comply with the following provisions, if applicable: 17
119		-
120		-	(22) Section 6–824 of the Environment Article (disclosure pertaining to 18
121		-	obligations to perform risk reduction); [and] 19
122		-
123		-	(23) Section 10–711 of this article (notice on zones of dewatering influence); 20
124		-	AND 21
125		-
126		-	(24) SECTION 10–715 OF THIS ARTICLE (DISCLOSURE PERTAININ G TO 22
127		-	ASSIGNMENT OF CONTRA CTS OF SALE BY WHOLE SALE BUYERS AND WHOL ESALE 23
128		-	SELLERS). 24
129		-
130		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 25
131		-	apply only prospectively and may not be applied or interpreted to have any effect on or 26
132		-	application to any contracts of sale for residential property executed before the effective 27
133		-	date of this Act. 28
134		-
135		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
136		-	October 1, 2025. 30
137		-
	126	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
	127	+	October 1, 2025. 23