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Home Builder Guaranty Fund Fee

Overview

During its 2008 session, the Maryland General Assembly enacted legislation that creates a guaranty fund in the Consumer Protection Division to protect consumers who purchase new homes in Maryland .The guaranty fund is similar to the existing fund operated by the Maryland Home Improvement Commission.

Consumers who have problems with their new homes that are not addressed by the builder will be able to file claims against the guaranty fund.

Eligibility

The guaranty fund applies only to contracts entered into between consumers and home builders after January 1, 2009.

Guarantee Fund Fee

The Inspections and Permits office is required to collect from home builders a guaranty fund fee of $50 with each application for a permit for construction of a new home, including new homes, custom homes, mobile homes, modular homes and condominiums.

Landowners who are performing construction of a home they intend to live in on their own land, and who submit a landowner affidavit to the Inspections and Permits office with their application, are not required to pay the $50 guaranty fund fee.

For more information email the Home Builder Registration Unit or call 877-259-4525.

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