1. (a) Subject to this subtitle a claimant may recover compensation from the Guaranty Fund for an actual loss that results from an act or omission by a registrant as found by the Division or a court of competent jurisdiction.

2. (b) Before submitting a claim to the Guaranty Fund, a consumer shall:

   1. (1) send a registrant a written notice describing the alleged defect or other claim for which the consumer intends to seek recovery; and
   2. (2) permit the registrant access, during regular business hours, to the consumer's property to inspect, determine the cause of, and remedy the alleged defect or other claim within a reasonable period of time.

3. (c)

   1. (1)

      1. (i) If a consumer has a new home warranty security plan, the consumer may also seek recovery from the Guaranty Fund if the consumer has first:

         1. 1. filed a claim with the new home warranty security plan; and
         2. 2. exhausted the plan's claim process.
      2. (ii) A consumer seeking recovery under subparagraph (i) of this paragraph may not receive more than one recovery for the same actual loss.

   2. (2) A claimant who has also filed a claim with a new home warranty security plan shall include with the claim against the Guaranty Fund:

      1. (i) a copy or description of the claim filed with the new home warranty security plan;
      2. (ii) any documents submitted by the claimant in support of the warranty claim, including engineering or inspection reports;
      3. (iii) any documents submitted on behalf of the home builder or warranty plan in connection with the warranty claim, including engineering or inspection reports;
      4. (iv) disclosure of any recoveries received in connection with the warranty claim; and
      5. (v) if all or part of the warranty claim was denied, a copy of the denial.

4. (d)

   1. (1) The Division may deny a claim if the Division finds that the claimant unreasonably rejected good faith efforts by the registrant to resolve the claim.
   2. (2) In determining whether a claim should be denied under paragraph (1) of this subsection, the Division shall consider whether the claimant provided the registrant with notice and a reasonable opportunity to access and inspect and repair the claimed defect as required under subsection (b) of this section.

5. (e) The Division may not award from the Guaranty Fund:

   1. (1) more than $50,000 to one claimant for acts or omissions of one registrant;
   2. (2) more than $500,000 to all claimants for acts or omissions of one registrant unless, after the Division has paid out $500,000 on account of acts or omissions of the registrant, the registrant reimburses $500,000 to the Guaranty Fund; or
   3. (3) an amount for attorney's fees, consequential damages, court costs, interest, personal injury damages, or punitive damages.

6. (f) A claim against the Guaranty Fund based on the act or omission of a particular registrant may not be made by:

   1. (1) a spouse or other immediate relative of the registrant;
   2. (2) an employee or principal of the registrant; or
   3. (3) an immediate relative of an employee or principal of the registrant.

7. (g)

   1. (1) A claimant may bring a claim against the Guaranty Fund within 2 years after the claimant discovered or, should have discovered the loss or damage or within 2 years after the expiration of the warranty under § 10-204 of the Real Property Article, whichever occurs first.
   2. (2) If a claimant has filed a claim with a new home warranty security plan, a claimant may bring a claim against the Guaranty Fund within 4 months after the claims process of the home warranty security plan is exhausted.

Added by Acts 2008, c. 480, § 1, eff. Oct. 1, 2008; Acts 2008, c. 481, § 1, eff. Oct. 1, 2008. Amended by Acts 2020, c. 58, § 1, eff. Oct. 1, 2020; Acts 2020, c. 59, § 1, eff. Oct. 1, 2020.