Home Builders - Open House - Sales Representative Disclosure Requirements
HB0850 requires home builders in Maryland who hold a property open to the public to post a conspicuous notice explaining the role and loyalty obligations of the builder’s sales representative. The notice must tell prospective buyers that the sales representative works for the home builder, may help with the purchase, but owes loyalty only to the builder, and it must also inform buyers that they have the right to obtain their own independent representation when purchasing a new home.
The bill also continues existing disclosure requirements in the Business Regulation Article for home builders and registered sales representatives. In addition to the new open-house notice, the law requires the disclosure to be provided in at least 12-point bold type with written materials and the first agreement signed by the consumer. The new notice must use a clear, simple font, have letters at least one-half inch high, and be unobstructed from view. The act takes effect October 1, 2026.
HB0850 amends Section 4.5-307 of the Maryland Business Regulation Article, expanding the disclosure obligations of home builders and their sales representatives. It does not create a new licensing scheme, but it adds a specific consumer-notice requirement for open houses and reinforces the existing duty to disclose that the sales representative represents the builder rather than the buyer. The practical effect is to increase transparency in new-home sales and to encourage buyers to seek independent representation if they want advice aligned with their interests.
The available record shows the bill was enacted and approved by the Governor, with no recorded committee transcript or vote details in the provided materials. Based on the bill’s language, the measure appears to have been framed as a consumer-protection and transparency bill rather than a controversial regulatory overhaul. The absence of recorded opposition in the supplied context suggests the bill likely faced limited public contention in the materials provided.
The main policy issue is the scope and visibility of the disclosure requirement. Supporters would view the bill as ensuring that buyers understand the sales representative’s loyalty is to the builder and that they may want independent representation. Any potential concern would likely come from home builders or industry participants who may view the mandated signage and disclosure language as an added compliance burden, especially the size and placement requirements for the notice at open houses. No specific opposition or amendments are included in the provided context.