HB 1029 Maryland House of Delegates · 2026 Regular Session

Real Property - Termination of Residential Real Estate Contracts - Contingency Clauses

HB 1029 modifies Maryland's real estate laws to clarify how homebuyers can get their deposits back when canceling a home purchase under a contingency clause (e.g., for inspections or appraisals). It requires sellers to provide the escrow agent with a copy of a court complaint or mediation request within 10 days of a buyer’s termination notice. If no legal action is filed within that period, the escrow agent must return the deposit to the buyer within 5 days. This affects homebuyers, sellers, and escrow agents by creating a clearer, time-bound process for handling deposits during contract terminations. The bill takes effect October 1, 2026.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House of Delegates Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 9, 2026 Last action Mar 23, 2026

Maddy AI version diff · 1 comparison

What changed between versions

First - Real Property - Termination of Residential Real Estate Contracts - Contingency Clauses → Third - Real Property - Termination of Residential Real Estate Contracts - Contingency Clauses · 6 edits

MODERATE

This bill adds procedural requirements for handling trust money when a residential real estate contract is terminated due to a contingency clause. It clarifies timelines for distributing funds and establishes protections for escrow agents and brokers who distribute money in good faith. The changes primarily affect the administrative process for releasing deposits when buyers back out of contracts.

REQUIREMENT

Added a committee report and house action status indicating the bill was favorably reported and adopted

Added specific timeline requirements for distributing trust money within 5 days after expiration of specified time periods

TECHNICAL

Changed the bill title from 'A BILL ENTITLED' to 'CHAPTER ______'

DEFINITION

Reorganized the definitions section by renumbering subsections and reformatting the list of contingency types

ENFORCEMENT

Added protection language stating that holders of trust money are not liable for distribution decisions made according to the new procedures

TIMELINE

Changed the effective date from October 1, 2026 to March 7, 2026 (the date the bill was read second time)

Floor votes · House of Delegates Mar 9, 2026

How they voted

127–0

Passed · 15 other

Total votes 142

Mar 9, 2026

D Democratic103

93 Yea 10

90% Yea

R Republican39

34 Yea 5

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Committee

Referred Judicial Proceedings

upper

Mar 21, 2026

Lower · Passed

Third Reading Passed

lower

Mar 20, 2026

Lower · Passed

Favorable Adopted Second Reading Passed

lower

Mar 20, 2026

Lower · Passed

Favorable Report by Economic Matters

lower

Mar 9, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (127-0-15)

house of delegates

Feb 9, 2026

Committee

First Reading Economic Matters

lower

11 primary · 0 co-sponsors