BALTIMORE, MD—Attorney General Anthony G. Brown has announced that between Fiscal Year (FY) 2020 and 2024, the Home Builder Guaranty Fund (the Guaranty Fund), administered by the Consumer Protection Division, paid over $1.4 million to claimants as reimbursement for losses resulting from acts or omissions by registered home builders related to new home construction. A total of $164,803.67 was paid to claimants in FY 2024. This information was included as a part of the comprehensive 2024 Annual Report of the Home Builder Registration Unit submitted to the Governor and General Assembly.

“Our Home Builder Guaranty Fund protects Marylanders from the actions of irresponsible home builders,” said Attorney General Brown. “Unfinished homes, and homes that fail to meet required construction standards, pose serious risks to the health, safety, and finances of their occupants. The Office of the Attorney General will continue to hold accountable those homebuilders who fail to deliver as required under the law.”

The Guaranty Fund, administered by the Division, helps protect 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.

Under state law, home builders in Maryland are required to, among other things, give consumers a pamphlet prepared by the Office of the Attorney General that describes consumers’ rights under the law and steps consumers can take to protect themselves. For example, in addition to using a registered home builder and making sure their money is properly protected by the builder, consumers can protect themselves by obtaining from the builder waivers of liens that confirm subcontractors have been paid and talking to subcontractors to confirm payment. A copy of the pamphlet 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 builder is registered by calling or visiting Registered Home Builders.

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

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