Annual Report: Attorney General’s Home Builder Guaranty Fund Pays Out over $388,000 to Maryland Home Buyers

News Release, Office of Maryland Attorney General Brian E. Frosh

BALTIMORE, MD (November 27, 2019) – Maryland Attorney General Brian E. Frosh announced today that in FY 2019, the Home Builder Guaranty Fund (the Guaranty Fund), administered by his Consumer Protection Division, paid a total of $388,160.39 to claimants as reimbursement for losses resulting from acts or omissions by registered home builders related to new home construction.  In addition, the registrations of five builders were suspended.  

The total payout from the Guaranty Fund to Maryland consumers over the past five years exceeds $2 million.  This information was included as a part of the comprehensive 2019 Annual Report of the Home Builder Registration Unit submitted to the Governor and General Assembly.

The Maryland Home Builder Registration Act (HBRA) protects new home buyers by requiring builders to register with the Division and by providing an enforcement mechanism that allows the Division to prevent builders with a bad track record from continuing to build in Maryland.  The Division’s Home Builder Registration Unit administers and enforces the HBRA.  During its 2008 Legislative Session, the General Assembly enacted legislation to provide additional protections for home buyers, establishing the Guaranty Fund and adding a registration requirement for sales representatives for Maryland home builders.  The Guaranty Fund protects buyers of new homes who purchase a new home from a registered home builder and suffer an actual loss as the result of:

  • Incomplete construction of a new home;
  • Breach of an express or implied warranty;
  • Failure to meet construction standards or guidelines; or
  • Failure to return a deposit or other payment to which the home buyer is entitled.

The Home Builder Unit also reached settlement agreements with seven builders in FY 2019 in which the home builders and principals have agreed to pay penalties and costs totaling over $40,000 to settle allegations that they violated Maryland’s home building laws, including operating as a home builder without being registered, failing to disclose required information to the Unit in their registration applications, or failing to include required disclosures in their contracts with Maryland consumers.

“The Guaranty Fund allows consumers to receive compensation that they might not otherwise have been able to recover for the losses they suffered at the hands of home builders that violate Maryland law,” said Attorney General Frosh.  “Before paying any money to a home builder, consumers should take steps to protect their investment by making sure that their homes are built by registered home builders and that any deposits are protected by escrow accounts, bonds, or letters of credit.”

Under state law, home builders in Maryland are required to give consumers a booklet prepared by the Office of the Attorney General that describes consumers’ rights under the law and steps consumers can take to protect themselves.  A copy of the booklet can be found here.  Consumers who have had problems with their new homes should contact the Division’s Mediation Unit at 410-528-8662 in Baltimore or call toll free at 877-259-4525.  Consumers can also file a claim by using the New Home Complaint and Guaranty Fund Claim Submission Form, which can be found here.  The Office of the Attorney General encourages home buyers to check whether their builders are registered by calling or visiting Registered Home Builders.

Copies of this year’s report and previous years’ reports can be found here.


The Southern Maryland Chronicle is a local, small business entrusted to provide factual, unbiased reporting to the Southern Maryland Community. While we look to local businesses for advertising, we hope to keep that cost as low as possible in order to attract even the smallest of local businesses and help them get out to the public. We must also be able to pay employees(part-time and full-time), along with equipment, and website related things. We never want to make the Chronicle a “pay-wall” style news site.

To that end, we are looking to the community to offer donations. Whether it’s a one-time donation or you set up a reoccurring monthly donation. It is all appreciated. All donations at this time will be going to furthering the Chronicle through hiring individuals that have the same goals of providing fair, and unbiased news to the community. For now, donations will be going to a business PayPal account I have set-up for the Southern Maryland Chronicle, KDC Designs. All business transactions currently occur within this PayPal account. If you have any questions regarding this you can email me at davidhiggins@southernmarylandchronicle.com

Thank you for all of your support and I hope to continue bringing Southern Maryland the best news possible for a very long time. — David M. Higgins II




© 2019 The Southern Maryland Chronicle. All Rights Reserved. This website is not intended for users located within the European Economic Area.