{"data":{"id":"us-md/md.-code-business-regulation-8-405","jurisdiction":"us-md","citation":"Md. Code, Business Regulation § 8–405","heading":"","body":"(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.\n(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.\n(c) A claimant shall comply with a written agreement to submit a dispute to arbitration before seeking recovery from the Fund.\n(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.\n(e) The Commission may not award from the Fund:\n(1) more than $30,000 to one claimant for acts or omissions of one contractor;\n(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;\n(3) an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;\n(4) an amount as a result of a default judgment in court; or\n(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.\n(f) (1) A claim against the Fund based on the act or omission of a particular contractor may not be made by:\n(i) a spouse or other immediate relative of the contractor;\n(ii) an employee, officer, or partner of the contractor; or\n(iii) an immediate relative of an employee, officer, or partner of the contractor.\n(2) An owner may make a claim against the Fund only if the owner:\n(i) resides in the home as to which the claim is made; or\n(ii) does not own more than three residences or dwelling places.\n(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.","path":["Article - Business Regulation"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gbr\u0026section=8-405","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:23Z","sha256":"492a692b0ae8e6f194e3b68a84b869f85d32619c7f435d4102c6e068ccc13c5e","source_id":"us-md","stale":false,"prev":"us-md/md.-code-business-regulation-8-404","next":"us-md/md.-code-business-regulation-8-406"},"notice":"GroundRules: Original legal text. Not legal advice."}