§ 7-310. Rescission of contract

   (a) Right to rescind. -- In addition to any other right under law to rescind a contract, the homeowner of a residence in default has the right to rescind a contract for the sale or transfer of the residence in default within 5 days after the execution of the contract.

(b) Void provisions. -- Any provision in a contract or other agreement concerning a sale or transfer of a residence in default that attempts or purports to waive the homeowner's rights under this title, consent to jurisdiction for litigation or choice of law in a state other than Maryland, consent to venue in a county other than the county in which the property is located, or impose any costs or filing fees greater than the fees required to file an action in a circuit court, is void.

(c) Use of quitclaim deed prohibited. -- Except when a primary mortgage lender takes a deed in lieu of foreclosure, a sale or transfer of a residence in default may not be executed using a quitclaim deed.

(d) Notice. -- A notice of rescission under this section:

   (1) Shall be in writing but need not take any particular form specified in this subtitle or any form contained in any agreement with the purchaser or transferee; and

   (2) Is effective, however expressed, if it indicates the intention of the homeowner to rescind the contract.

(e) Right may not be conditioned on repayment of funds. -- The right to rescind may not be conditioned on the repayment of any funds, provided however that any debt existing prior to a rescission shall continue to exist.

(f) Return of deed. -- Within 10 days after receipt of a notice of rescission, the purchaser or transferee shall return, without condition, any original deed, title, contract, and any other document signed by the homeowner.

(g) No recordation during five-day rescission period. -- During the 5-day rescission period, a deed or other document affecting title to the homeowner's residence in default may not be recorded.

HISTORY: 2008, chs. 5, 6.