Overview
D.R. Horton operates in Maryland with active communities in the Baltimore metropolitan area, the Washington, D.C. suburbs, and parts of the Eastern Shore and Southern Maryland.
Maryland is one of the most buyer-friendly states in the country for new construction purchases. The state's implied warranty of habitability cannot be waived by contract, and the Home Builder Registration Act requires builders to register and contribute to a Guaranty Fund.
How Maryland Law Affects Your Contract
The following analysis examines how D.R. Horton's documented contract patterns interact with Maryland consumer protection law.
Non-Waivable Implied Warranty of Habitability
Maryland law provides that the implied warranty of habitability cannot be waived by contract. D.R. Horton's habitability waiver clause (HAB-001) is likely unenforceable in Maryland. This makes Maryland one of the strongest states for buyer protections against habitability defects in new construction.
Home Builder Registration and Guaranty Fund
Maryland's Home Builder Registration Act (Md. Code, Bus. Reg. § 4.5-101 et seq.) requires residential builders to register with the state and contribute to a Guaranty Fund. This fund provides a limited recovery mechanism for homebuyers if a builder fails to honor its warranty obligations.
Maryland Consumer Protection Act
The Maryland Consumer Protection Act (Md. Code, Com. Law § 13-101 et seq.) prohibits unfair or deceptive trade practices and provides a private right of action. If D.R. Horton or DHI Mortgage made misleading representations during the sales process, this statute may provide additional remedies for Maryland buyers.
20-Year Statute of Repose
Maryland has a notably long 20-year statute of repose for improvements to real property. D.R. Horton's shortened limitation provisions (TIM-001) may conflict with this generous statutory timeline. Maryland buyers have significantly more time to discover and pursue construction defect claims than buyers in many other states.
Maryland Legal History
No state-specific litigation involving D.R. Horton in Maryland has been identified in public records as of this writing.
Relevant Maryland Laws
Maryland law provides strong implied warranty protections for new construction. Courts have held that this warranty cannot be waived by contract in consumer transactions.
Requires residential builders to register with the state and participate in the Home Builder Guaranty Fund, which provides a limited recovery fund for homebuyers.
Prohibits unfair or deceptive trade practices and provides consumers with a private right of action for damages.
Maryland Key Facts
- 1Maryland's implied warranty of habitability cannot be waived by contract.
- 2Builders in Maryland must register with the Home Builder Registration Unit and contribute to the Guaranty Fund.
- 3Mandatory arbitration clauses are generally enforceable in Maryland, subject to unconscionability challenges.
- 4Maryland has a statute of limitations of 3 years for contract claims and a 20-year statute of repose for improvements to real property.
- 5Maryland does not have a statutory right-to-repair or pre-litigation notice requirement for construction defects.
- 6The Consumer Protection Act provides remedies for deceptive practices in new home sales.
What Maryland Buyers Should Know
- Know that Maryland's habitability warranty cannot be waived. Maryland law prohibits builders from contractually waiving the implied warranty of habitability. Any such waiver in your D.R. Horton contract is likely unenforceable.
- Understand the Home Builder Guaranty Fund. Maryland's Home Builder Registration Act provides a limited recovery fund for homebuyers. If D.R. Horton fails to honor warranty obligations, you may be able to file a claim with the Guaranty Fund.
- Take advantage of Maryland's long statute of repose. Maryland's 20-year statute of repose for construction defect claims is among the longest in the country. This provides a wide window to discover and pursue claims for latent defects.
- Consider the Maryland Consumer Protection Act. If you believe you were misled during the sales process, the Maryland Consumer Protection Act provides a private right of action for unfair or deceptive trade practices.