Maryland New Home Deposit Protection Bond
What it is & who requires it
A home builder or seller of new homes in Maryland who takes a deposit from a buyer must protect that deposit. Maryland accepts an escrow account, a corporate surety bond, or an irrevocable letter of credit (co-equal); the amount tracks the deposit. This deposit-protection requirement is separate from new-home-builder registration, which is backed by the Home Builder Guaranty Fund and requires no bond.
Obligee: Home Builder Registration Unit, Consumer Protection Division (Office of the Attorney General of Maryland). Citation: COMAR 02.01.09.04; Real Property Article §§10-302 and 10-303, Annotated Code of Maryland.
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Per the deposit obligation; held while the buyer’s deposit on the new home is at risk, per Real Property Article, Title 10.
Renewal: Filed with the home builder’s registration and at each renewal; updated within 10 days of any change to the method or amount of protection.
Filing
A Maryland home builder or seller who takes a deposit from a new-home buyer must protect that deposit, and Maryland accepts an escrow account, a surety bond, or an irrevocable letter of credit. Because these methods are co-equal and the amount tracks the buyer’s deposit, the bond is listed and the exact amount is confirmed when you start it. It is filed with the builder’s registration and updated within 10 days of any change to the method or amount. Authority: COMAR 02.01.09.04 and Real Property Article §§10-302 and 10-303.
Source
Verified against the obligee source.
Related Maryland bonds
Frequently asked questions
- Who requires the Maryland New Home Deposit Protection Bond?
- It’s required by Home Builder Registration Unit, Consumer Protection Division (Office of the Attorney General of Maryland) (COMAR 02.01.09.04; Real Property Article §§10-302 and 10-303, Annotated Code of Maryland). A home builder or seller of new homes in Maryland who takes a deposit from a buyer must protect that deposit. Maryland accepts an escrow account, a corporate surety bond, or an irrevocable letter of credit (co-equal); the amount tracks the deposit. This deposit-protection requirement is separate from new-home-builder registration, which is backed by the Home Builder Guaranty Fund and requires no bond.
- How much is the Maryland New Home Deposit Protection Bond?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the Maryland New Home Deposit Protection Bond?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Per the deposit obligation; held while the buyer’s deposit on the new home is at risk, per Real Property Article, Title 10. Renewal: Filed with the home builder’s registration and at each renewal; updated within 10 days of any change to the method or amount of protection.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
