In 2026, the 449th Maryland General Assembly session convened on January 14th and adjourned on April 13th. Maryland REALTORS® issues a recap of pertinent legislation affecting industry.
SB 691 Termination of Residential Real Estate Contracts – Earnest Money Deposits PASSED – Effective 6/1/26
Expands the expedited return-of-deposit procedure to apply to all contract contingencies and clarifies how sellers may request mediation. If the seller does not file a complaint or request mediation within 10 days of receiving the purchaser’s request, the holder of the trust money must return it within 5 days.
SB 814 Homeowner Service Agreement - Defunct Service Providers PASSED – Effective 6/1/26
Prohibits enforcement of long-term residential “homeowner benefit” or service agreements entered into before June 1, 2023, if the provider is not in good standing with the State.
HB 200 Sale of Residential Real Property - Required Flood Risk Disclosure PASSED – Effective 6/1/26
Requires the Department of the Environment to develop a flood risk disclosure statement form. Beginning July 1, 2027, the completed disclosure form must be provided before entering into a contract, along with a copy of the FEMA elevation certificate (if available).
HB 146/SB 165 On-Site Wastewater Systems: Inspection/Pumping Requirements DID NOT PASS
Homes served by septic systems must be inspected—and pumped as required—before transfer, with the system’s condition disclosed to the buyer. Settlement cannot occur until both parties receive the inspection report and proof of pumping.
HB 557 Occupational Licensing - Criminal History Predetermination Review Process PASSED – Effective 7/1/26
State agencies shall establish a predetermination review process to assess an applicant’s criminal history and determine whether it would disqualify them from obtaining a specific occupational license or certificate. Agencies may charge a fee of up to $100 per review.
SB 242 Modernizing Civil Relief for Service Members Act PASSED – Effective 6/1/26
Active-duty service members and their spouses can use out-of-state professional licenses to work in Maryland.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.