2002 Legislation Affecting Real Property

In the 2002 session of the General Assembly of Maryland, several bills affecting real property and the real estate industry were enacted.

New Home Builders. House Bill 79 requires bonds from home builders to be deposited with the Consumer Protection Division of the Office of the Attorney General instead of the Department of Labor, Licensing and Regulation.  The bill also requires that a builder who does not participate in a new home warranty security plan provide written notice to a purchaser that (i) builders of new homes in Maryland are required to be registered, (ii) without a new home warranty, the purchaser may have only limited implied warranties, and (iii) discloses any hazardous materials or states that the builder is not making any representations about hazardous materials.  If a builder does participate in a new home warranty security plan, the builder must make the disclosure or disclaimer regarding hazardous wastes.  The Bill is effective July 1, 2002. See Business Regulation Article, Section 4.5-203, and Real Property Article Sections 10-302, et seq. and 10-601 et seq.

Recordation Tax. Under prior law, the original mortgagor had to make the affidavit required to qualify for the refinancing exemption from recordation tax.  House Bill 512 permits an agent of the original mortgagor to make the affidavit which must be based on diligent inquiry and must be true to the best of the agent's knowledge information and belief. The Bill is effective July 1, 2002.  See Tax property Article, Section 12-108(g).

Homeowner's Tax Credits.  House Bill 355 provides for an exception to the general deadline for filing for a tax credit for up to 3 years for homeowners who are at least 70 years old as of the taxable year for which a credit is sought.  Effective July 1, 2002.  See Tax Property Article, Section 9-104.

Anne Arundel County Contract Disclosure House Bill 352 requires the following disclosure in contracts for residential real property in Anne Arundel County:

"The buyer fully understands that in order to become more fully informed of the current and future land-use plans, facility plans, public works plans, school plans, or other plans affecting the property or area, the buyer should consult with the appropriate county agency or county internet web site for information regarding those plans."

This requirement is effective October 1, 2002. See Real Property Article, Sections 10-703 and 14-117(f)(12).

Use of Tradenames by Real Estate Brokers and Sales Persons. House Bill 704 provides that a licensed real estate salesperson or licensed associate real estate broker may provide broker services under a trade name approved by the Real Estate Commission.  The bill requires that any advertising include both the name or tradename of the sales person or associate broker and the full name of the business with which such person is affiliated.  This bill is effective October 1, 2002.  See Business Occupations and Professions Article, Sections 17-322(b)(19), 17-527.2 and 17-527.3.

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