§ 4.5-705
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§4.5–705.
(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.
(b)Before submitting a claim to the Guaranty Fund, a consumer shall:
(1)send a registrant a written notice describing the alleged defect or other claim for which the consumer intends to seek recovery; and
(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.
(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. filed a claim with the new home warranty security plan; and
2. exhausted the plan’s claim process.
(ii)A consumer seeking recovery under subparagraph
(i)of this paragraph may not receive more than one recovery for the same actual loss.
(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:
(i)a copy or description of the claim filed with the new home warranty security plan;
(ii)any documents submitted by the claimant in support of the warranty claim, including engineering or inspection reports;
(iii)any documents submitted on behalf of the home builder or warranty plan in connection with the warranty claim, including engineering or inspection reports;
(iv)disclosure of any recoveries received in connection with the warranty claim; and
(v)if all or part of the warranty claim was denied, a copy of the denial.
(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)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.
(e)The Division may not award from the Guaranty Fund:
(1)more than $50,000 to one claimant for acts or omissions of one registrant;
(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)an amount for attorney’s fees, consequential damages, court costs, interest, personal injury damages, or punitive damages.
(f)A claim against the Guaranty Fund based on the act or omission of a particular registrant may not be made by:
(1)a spouse or other immediate relative of the registrant;
(2)an employee or principal of the registrant; or
(3)an immediate relative of an employee or principal of the registrant.
(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)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.