§ 11B-108. Cancellation of contract

   (a) Failure to receive disclosures required by § 11B-105, § 11B-106 or § 11B-107 -- Entry into contract. -- A person who enters into a contract as a purchaser but who has not received all of the disclosures required by § 11B-105, § 11B-106, or § 11B-107 of this title, as applicable, shall, prior to settlement, be entitled to cancel the contract and to the immediate return of deposits made on account of the contract.

(b) Failure to receive disclosures required by § 11B-105, § 11B-106 or § 11B-107 -- Five calendar days before entry into contract. --

   (1) Any purchaser who has not received all of the disclosures required under § 11B-105 or § 11B-106 of this title, as applicable, 5 calendar days or more before the contract was entered into, within 5 calendar days following receipt by the purchaser of the disclosures required by § 11B-105(a) and (b) or § 11B-106(a) and (b) of this title, as applicable, may cancel in writing the contract without stating a reason and without liability on the part of the purchaser.

   (2) The purchaser shall be entitled to the return of any deposits made on account of the contract, except that the vendor shall be entitled to retain the cost of reproducing the information specified in § 11B-105(b), § 11B-106(b), or § 11B-107(b) of this title, as applicable, or $ 100, whichever amount is less, if the disclosures are not returned to the vendor at the time the contract is cancelled.

(c) Receipt of amendment to disclosure which adversely affects purchaser. -- Any purchaser may within 3 calendar days following receipt by the purchaser of a change in mandatory fees and payments exceeding 10 percent of the amount previously stated to exist or any other substantial and material amendment to the disclosures required by § 11B-105 or § 11B-106 of this title, as applicable, which adversely affects the purchaser, cancel in writing the contract without stating a reason and without liability on the part of the purchaser, and the purchaser shall be entitled to the return of deposits made on account of the contract.

(c-1) Return of deposits held in trust by licensed real estate broker. -- If any deposits are held in trust by a licensed real estate broker, the return of the deposits to a purchaser under subsection (a), (b), or (c) of this section shall comply with the procedures set forth in § 17-505 of the Business Occupations and Professions Article.

(d) Waiver of termination of purchaser's rights under section. -- The rights of a purchaser under this section may not be waived in the contract and any attempted waiver is void. However, if any purchaser proceeds to settlement, the purchaser's right to cancel under this section is terminated.

(e) Reliance on disclosures contained in depository. -- In satisfying the requirements of subsection (b) of this section, the vendor shall be entitled to rely upon the disclosures contained in the depository after June 30, 1989.

(f) Provisions inapplicable to foreclosure sale. -- The provisions of this section do not apply to a sale of a lot in an action to foreclose a mortgage or deed of trust.

HISTORY: 1987, ch. 321; 1988, ch. 6, § 1; ch. 82; 1989, ch. 693; 2011, ch. 156.