Overview
Stanley Martin operates in Maryland markets, primarily in the Washington, D.C., suburban communities in Prince George's County, Charles County, Anne Arundel County, and surrounding areas. Maryland is a core market given Stanley Martin's Northern Virginia headquarters.
The Maryland Supreme Court addressed deferred water and sewer assessment charges imposed by Stanley Martin in Elsberry v. Stanley Martin Companies (2022), establishing that builders may impose thirty-year infrastructure assessment charges in certain Maryland counties. Maryland's consumer protection framework and construction defect statutes affect how Stanley Martin's contract provisions operate.
How Maryland Law Affects Your Contract
The following analysis examines how Stanley Martin's documented contract patterns interact with Maryland consumer protection law.
Deferred Water and Sewer Assessment Charges
In Elsberry v. Stanley Martin Companies (No. 6-22, Maryland Supreme Court, 2022), the court addressed a thirty-year deferred water and sewer assessment charge imposed through a recorded declaration on homebuyer properties in Charles County. The court held that the twenty-year amortization limit in Real Property Section 14-117(a)(3)(ii) applies only to Prince George's County, allowing longer-term charges elsewhere. Maryland buyers should search property records for recorded declarations imposing ongoing infrastructure assessments.
Maryland Consumer Protection Act
The Maryland Consumer Protection Act (Md. Code, Com. Law 13-101 et seq.) prohibits unfair, abusive, or deceptive trade practices. If Stanley Martin's sales process or disclosure of deferred assessment charges is misleading, this statute may provide remedies.
Maryland 20-Year Statute of Repose
Maryland's statute of repose for construction defect claims is 20 years from the date the improvement was substantially completed (Md. Code, Cts. & Jud. Proc. 5-108). This is among the longest repose periods nationally and provides Maryland buyers with a substantial window to bring latent defect claims.
Binding Arbitration via 2-10 HBW
Stanley Martin uses the 2-10 HBW warranty program, which designates arbitration as the final dispute resolution method. Maryland buyers should review the enforceability of this provision under state law, as Maryland courts have addressed unconscionable arbitration clauses in consumer contracts.
Maryland Legal History
Selected cases and investigations involving Stanley Martin in Maryland.
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
- Check for deferred infrastructure assessment charges on the property. The Maryland Supreme Court upheld Stanley Martin's imposition of thirty-year deferred water and sewer charges through recorded declarations. Search property records for any recorded declarations that impose ongoing infrastructure assessments before signing.
- Take advantage of Maryland's 20-year statute of repose. Maryland provides a 20-year window from substantial completion to bring construction defect claims, one of the longest periods nationally. Even so, document and report defects promptly.
- Review the 2-10 HBW arbitration provisions. The warranty program designates binding arbitration as the final dispute resolution method. Consult a Maryland attorney about enforceability and whether class action rights are waived.
- Review the Affiliated Business Arrangement disclosure. Stanley Martin publishes an ABA disclosure indicating financial relationships with settlement service providers. Compare all terms with independent providers before committing.
- Hire an independent home inspector before closing. Given the stormwater flooding issues documented in Virginia and construction defect claims in South Carolina, request inspections at pre-drywall and pre-closing stages with attention to drainage, grading, and waterproofing.