In the State of Maryland, any person or company who builds new homes must register with the Office of the Attorney General, Maryland Homebuilder Registration Unit, pursuant to the Maryland Home Builder Registration Act.
Montgomery County, Maryland has a separate home builder licensing requirement and if you build exclusively in Montgomery County, you only need to comply with certain aspects of the Maryland State law.
Sales representatives for home builders in Maryland must also register with the Maryland Homebuilder Registration Unit. The application for filing with the State requires information about the ownership of your company, history of the business, including operations in other jurisdictions and certain information about business operations. Each registration is for a two (2) year period.
The Home Builder Registration Act also includes requirements for what needs to be in a new home sales contract, what performance standards and guidelines apply, how home builders need to deal with sales deposits, and certain warranty requirements that may apply to the construction of a new home.
Contract purchasers and homeowners may make claims with the Home Builder Registration Unit for what they believe are disputes between the parties or for violations of the Home Builder Registration Act, and the Home Builder Registration Unit has the right to investigate all claims. The Home Builder Registration Unit will encourage the parties to pursue a resolution on their own, but can also hold hearings and assess penalties, including loss of registration.