1. (a) Subject to this subtitle, an owner may recover compensation from the Fund for an actual loss that results from an act or omission by a licensed contractor or a violation of § 8-607(4) of this title as found by the Commission or a court of competent jurisdiction.
2. (b) For purposes of recovery from the Fund, the act or omission of a licensed contractor includes the act or omission of a subcontractor, salesperson, or employee of the licensed contractor, whether or not an express agency relationship exists.
3. (c) A claimant shall comply with a written agreement to submit a dispute to arbitration before seeking recovery from the Fund.
4. (d) The Commission may deny a claim if the Commission finds that the claimant unreasonably rejected good faith efforts by the contractor to resolve the claim.

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

   1. (1) more than $30,000 to one claimant for acts or omissions of one contractor;
   2. (2) more than $250,000 to all claimants for acts or omissions of one contractor unless, after the Commission has paid out $250,000 on account of acts or omissions of the contractor, the contractor reimburses $250,000 to the Fund;
   3. (3) an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;
   4. (4) an amount as a result of a default judgment in court; or
   5. (5) an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.

6. (f)

   1. (1) A claim against the Fund based on the act or omission of a particular contractor may not be made by:

      1. (i) a spouse or other immediate relative of the contractor;
      2. (ii) an employee, officer, or partner of the contractor; or
      3. (iii) an immediate relative of an employee, officer, or partner of the contractor.

   2. (2) An owner may make a claim against the Fund only if the owner:

      1. (i) resides in the home as to which the claim is made; or
      2. (ii) does not own more than three residences or dwelling places.
7. (g) A claim shall be brought against the Fund within 3 years after the claimant discovered or, by use of ordinary diligence, should have discovered the loss or damage.

Added by Acts 1992, c. 4, § 2. Amended by Acts 1994, c. 740, § 1, eff. Oct. 1, 1994; Acts 1999, c. 34, § 1, eff. April 13, 1999; Acts 1999, c. 137, § 1, eff. Oct. 1, 1999; Acts 2000, c. 144, § 1, eff. Oct. 1, 2000; Acts 2000, c. 616, § 1, eff. Oct. 1, 2000; Acts 2008, c. 272, § 1, eff. Oct. 1, 2008; Acts 2009, c. 60, § 1, eff. April 14, 2009; Acts 2010, c. 671, § 1, eff. Oct. 1, 2010; Acts 2022, c. 646, § 1, eff. July 1, 2022; Acts 2022, c. 647, § 1, eff. July 1, 2022; Acts 2023, c. 415, § 1, eff. July 1, 2023.

Formerly Art. 56, §§ 249, 257A, 257D, 257E, 257G.