Details

For the new-home transactions described in §10-301, the law provides escrow, a corporate surety bond or an eligible irrevocable letter of credit as alternatives. Section 10-302 requires a CPD-approved bond deposited with CPD and allows individual or qualifying blanket security. The blanket amount follows a statutory deposit schedule measured using deposits held on May 31, rather than one fixed sum for every builder. Custom-home §10-504 separately provides a surety alternative to the escrow it requires, subject to its own scope and exceptions.

The current linked sample asks for the legal builder or seller, MHBR number, covered and expressly excluded entities, amount and start date. It requires 45 days' certified-mail notice to CPD before cancellation or a reduction in amount or coverage. Under that model the State can demand payment with CPD's certification no later than one year after cancellation, and the surety must pay a qualifying demand within 30 days, up to the bond amount. Cancellation is not permission to leave protected payments unsecured.

Purchase Now opens Propeller's Maryland Home Builder Deposit application in a new tab. Bring the written requirement, current CPD-approved form, legal entity and MHBR details, covered/excluded entities, deposit totals, applicable amount basis and dates. Confirm the transaction category and accepted security with CPD and the provider before paying. Execute and deposit the bond as instructed, retain acceptance and continue the required protection; purchase does not register the builder or decide whether a consumer is entitled to a refund.