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MarylandSB 06912026 Regular SessionSenate

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

Sponsored By: Mike McKay (Republican)

Signed by Governor

Real PropertyAgents and BrokersComplaintsContracts -see also- ProcurementDistrict CourtsEstates and Trusts -see also- BeneficiariesMediation -see also- ArbitrationNotaries PublicNoticesReal Estate -see also- Agents and BrokersResidential Property -see also- Apartments; CondominiumsTermination of ServicesTime

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Rules and legal shield for escrow holders

Beginning October 1, 2026, the law defines who is an escrow agent or holder, what counts as residential real estate, what “trust money” means, and what a “contingency” is. It covers homes with four or fewer units and lots zoned for homes. Escrow agents and licensed brokers are not liable for a deposit payout if they follow the law’s timelines and document rules.

Buyer deposit refunds after cancellation

Beginning October 1, 2026, if you cancel under a contingency, you can ask for your deposit back. Send written notice to the holder and the seller. The seller then has 10 days to give the holder a court complaint or a notarized request for mediation about the deposit. If the holder gets no copy within 10 days, the holder must return the deposit to you within 5 days and notify both sides.

How disputed home deposits are handled

Beginning October 1, 2026, if the holder gets a copy of a court complaint or a proper mediation request about a deposit, the holder must keep the money. The holder waits until a court order or a signed mediation agreement says where it goes, or the holder asks the District Court to decide. If you disagree with a distribution, you can sue in the District Court where the property is located.

Sponsors & Cosponsors

Sponsor

  • Mike McKay

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 171 • No: 0

House vote • 4/8/2026

Third Reading Passed

Yes: 129 • No: 0 • Other: 6

Senate vote • 3/20/2026

Third Reading Passed

Yes: 42 • No: 0 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 716

    5/26/2026

  2. Returned Passed

    4/9/2026Senate

  3. Third Reading Passed (129-0)

    4/8/2026House

  4. Favorable Adopted Second Reading Passed

    4/8/2026House

  5. Favorable Report by Economic Matters

    4/8/2026House

  6. Referred Economic Matters

    3/21/2026House

  7. Third Reading Passed (42-0)

    3/20/2026Senate

  8. Second Reading Passed

    3/19/2026Senate

  9. Favorable Adopted

    3/19/2026Senate

  10. Favorable Report by Judicial Proceedings

    3/19/2026Senate

  11. Hearing 3/05 at 1:00 p.m.

    2/12/2026Senate

  12. First Reading Judicial Proceedings

    2/6/2026Senate

Bill Text

  • Enacted

    5/26/2026

    PDF

  • Third Reading

    3/19/2026

    PDF

  • First Reading

    2/6/2026

    PDF

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