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HB 124

Residential Property - Assignment of Contracts of Sale - Disclosure Requirements and Rescission

2025 Regular Session Introduced by Regina Boyce and 1 co-sponsor

Maryland law now requires disclosure when residential property sale contracts are assigned and grants buyers rescission rights, increasing transparency in real estate transactions.

Approved by the Governor - Chapter 508
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Bill Summary · HB 124

Legislative bill overview

HB 124 modifies Maryland's real estate law to impose new disclosure requirements and rescission rights when residential property sale contracts are assigned to third parties. The bill requires sellers and original buyers to be notified when a contract is assigned, and grants buyers the right to rescind the contract within a specified period if an assignment occurs.

Why is this important

Assignment of contracts—where an original buyer transfers their rights to a third party—has become increasingly common in real estate investing and wholesaling. Without disclosure requirements, sellers and original buyers may be unaware of contract transfers, potentially disadvantaging them in negotiations or exposing them to unknown parties. This legislation aims to increase transparency and protect consumer interests in residential transactions.

Potential points of contention

  • Impact on real estate investing: Wholesalers and investors who rely on contract assignments may face increased costs and delays, potentially affecting deal velocity and market efficiency in the residential real estate sector
  • Rescission scope and timeline: The specific timeframe for rescission rights could be either too generous (burdening sellers with extended uncertainty) or too restrictive (limiting buyers' practical ability to exercise the right)
  • Definition and scope ambiguity: Uncertainty about what constitutes an "assignment" versus other contract modifications, and whether all types of transfers trigger disclosure requirements, could create implementation challenges

Compiled from official sources — confirm details with the bill’s official record.

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