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§ 10-803. Termination of residential real estate contracts under contingency clause; return of ...

West's Annotated Code of MarylandReal PropertyEffective: October 1, 2023

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 10. Sales of Property (Refs & Annos)
Subtitle 8. Miscellaneous Provisions (Refs & Annos)
Effective: October 1, 2023
MD Code, Real Property, § 10-803
§ 10-803. Termination of residential real estate contracts under contingency clause; return of trust money
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2)(i) “Contingency” means a clause included in a contract of sale for residential real estate that:
1. Requires a specific event or action to occur for the contract to be enforceable; and
2. Entitles a party exercising the contingency to terminate the contract and receive distribution of the trust money.
(ii) “Contingency” includes a clause relating to:
1. Appraisals;
2. Back-up contracts;
3. Building permits, feasibility studies, or other contingencies related to condominium notice;
4. Conservation easements;
5. Cooperative housing notices;
6. Deeds and titles;
7. Home or environmental inspections;
8. Homeowners association notices;
9. On-site sewage disposal system inspections;
10. Property condition disclosures and disclaimer act notices;
11. Short sales;
12. Sales of residential unimproved land;
13. Termite inspections;
14. Third-party approval not related to financing; or
15. Water and sewer assessments notices.
(3) “Holder of trust money” means:
(i) An escrow agent as defined in § 10-802 of this subtitle; or
(ii) A licensed real estate broker as defined in § 17-101 of the Business Occupations and Professions Article.
(4) “Residential real estate” has the meaning stated in § 10-802 of this subtitle.
(5) “Trust money” has the meaning stated in § 10-802 of this subtitle.
In general
(b)(1)(i) If a purchaser terminates a residential real estate contract under the terms of a contingency clause of a contract of sale for residential real estate, the purchaser may request the return of the trust money by providing the holder of the trust money and the seller written notice of the request.
(ii) Within 10 days after receiving a request made in accordance with subparagraph (i) of this paragraph, the seller shall provide the holder of the trust money with a copy of a complaint filed in the District Court or a notarized, written request for mediation relating to the distribution of the trust money.
(iii) Within 30 days after receiving a request made in accordance with subparagraph (i) of this paragraph, the holder of the trust money, if they have not received a copy of a complaint filed, or a request for mediation made, in accordance with subparagraph (ii) of this paragraph, shall:
1. Distribute the trust money to the purchaser; and
2. Notify the purchaser and seller of the distribution.
(iv) If the holder of trust money receives a copy of a complaint filed, or a request for mediation made, in accordance with subparagraph (ii) of this paragraph, they shall hold the trust money until:
1. A court order or mediation agreement authorizes the distribution of the money; or
2. The holder of the trust money files an interpleader action in the District Court.
(2) A holder of trust money may not be liable for a decision to distribute trust money made in accordance with this subsection.
Actions in District Court
(c) A claimant who is aggrieved by a distribution of trust money under this section may file an action in the District Court sitting in the district in which the residential real estate is located.

Credits

Added by Acts 2023, c. 585, § 1, eff. Oct. 1, 2023.
MD Code, Real Property, § 10-803, MD REAL PROP § 10-803
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document