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Summary
HB1151 revises Maryland law governing residential real property appraisals in connection with home sales and certain refinancing transactions. The bill allows a seller to request an additional appraisal when the original appraisal comes in below the property’s current market value, and it expressly permits sellers or their agents to provide an appraiser with information supporting value, such as comparable sales and cost-approach data. Appraisers must accept and consider that information, and if an appraisal is below the contract price, the appraiser must notify the lender, which must then notify the prospective buyer and the buyer’s agent.
The bill also creates a short reconsideration process: after notice, the buyer must promptly notify the seller, and both parties have two business days to submit additional information to the lender for reconsideration by the appraiser. For refinance and home equity line of credit transactions, the owner may provide additional valuation information to the lender for forwarding to the appraiser. The lender must provide a written copy of any additional appraisal or reconsideration to the requesting party at no cost, and appraiser training and continuing education must include the new requirements.
Impact
HB1151 amends Section 14-104.1 of the Real Property Article and adds new Section 14-104.2, expanding the rights of sellers and homeowners to participate in the appraisal process for residential real property. It imposes new notice, information-sharing, and reconsideration obligations on appraisers and lenders, and it requires appraiser education programs to cover these procedures. The bill takes effect October 1, 2025, and affects residential sales, refinancing, home equity lending, lenders, appraisers, sellers, buyers, and their agents.
Sentiment
The bill appears to have broad support in the House, passing third reading unanimously by a 137-0 vote. The committee report was favorable with amendments, suggesting the chamber generally supported the policy while refining its details. No committee transcript opposition is provided, and the voting record indicates strong consensus around the measure.
Contention
The main policy issue is how much influence sellers and buyers should have in the appraisal process when an appraisal is below the contract price or expected value. Supporters likely view the bill as a way to ensure appraisers consider relevant market data and reduce the risk of undervaluation, while potential concerns would center on whether the process could pressure appraisers or complicate lending timelines. The amendments and the added notice/reconsideration procedures suggest the legislature sought to balance appraisal integrity with fairness to property owners and prospective buyers.