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New Home Contracts and Required Warranties (Montgomery County, MD)

| Feb 18, 2014 | Construction Law |

Many contractors are aware that State law in Maryland imposes lengthy requirements for new home contracts. However, many home builders are unaware that Montgomery County imposes additional requirements for contract language. These requirements can be found here:

Builder’s Warranty Responsibilities for Montgomery County, MD

Some important highlights of these requirements are included below:

  • A one year warranty must be provided on materials or workmanship on smoke detectors, fire alarms, fire extinguishers, garage door openers, intercoms, security systems, garbage disposals, water softeners, refrigerators, freezers, trash compactors, dishwashers, clothes washers, clothes dryers, ice makers and stoves/ranges
  • A two year warranty must be provided on any defect in the electrical, plumbing, heating, cooling, ventilation, and mechanical systems.
  • A ten year warranty must be provided on any major structural defect.
  • Each builder will be responsible for the correction of any defect that appears during any of the warranty periods specified in this section.
  • The builder’s responsibility in the case of a defect covered by this warranty includes removal of the defects by repair or replacement or payment of the reasonable cost of repair or replacement. The builder will choose between repair, replacement or payment. The builder’s responsibility will include actual reasonable shelter expenses during repairs. In order for the dispute settler to award shelter expenses, a determination must be made that the repair activity renders the house either unsafe or uninhabitable during the term of the repair.
  • When a defect covered by this warranty is removed by repair, replacement or payment of the reasonable cost of repair or replacement, a release with respect to that specific defect will be signed by the owner and the County and delivered to the builder.
  • Each builder must participate in a new home warranty security program must or contribute to the County an amount equal to 0.3 of one percent of the purchase price of the home.

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