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MarylandSB 08142026 Regular SessionSenate

Residential Property - Service Agreement - Defunct Service Providers

Sponsored By: Antonio Hayes (Democratic)

Signed by Governor

Real PropertyBusiness Occupations and ProfessionsAssessments -see also- Property TaxAttorneys' FeesCircuit CourtsCivil Actions -see also- Small ClaimsContracts -see also- ProcurementDamagesLiensRecordationResidential Property -see also- Apartments; CondominiumsTermination of Services

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Bill Overview

Analyzed Economic Effects

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

Extra protections if provider is defunct

Beginning June 1, 2026, special rules apply if your provider has forfeited the right to do business in Maryland and is defunct and not in good standing. For contracts that started before June 1, 2023, the contract cannot last more than two years. It also cannot run with the land, create a lien or security interest, or be assigned without notice or your consent. Any contract that violates these bans is void and unenforceable. If a violating contract was recorded and put a lien on a home you have an interest in, you can sue in county circuit court for a ruling, compensatory damages, and reasonable attorney’s fees and costs.

New limits on home service contracts

Beginning June 1, 2026, Maryland limits home service contracts that started on or after June 1, 2023. These contracts cannot last more than one year. They cannot say they run with the land, bind later buyers, or create a lien or security interest. A provider cannot assign the contract without notice or your consent. Contracts that started before June 1, 2023 are generally not covered unless the defunct provider rules apply.

Sponsors & Cosponsors

Sponsor

  • Antonio Hayes

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 175 • No: 0

House vote • 4/10/2026

Third Reading Passed

Yes: 133 • No: 0 • Other: 3

Senate vote • 3/20/2026

Third Reading Passed

Yes: 42 • No: 0 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 738

    5/26/2026

  2. Returned Passed

    4/10/2026Senate

  3. Third Reading Passed (133-0)

    4/10/2026House

  4. Favorable Adopted Second Reading Passed

    4/8/2026House

  5. Favorable Report by Economic Matters

    4/8/2026House

  6. Hearing 4/02 at 2:30 p.m.

    4/2/2026House

  7. Hearing canceled

    4/2/2026House

  8. Hearing 4/02 at 1:30 p.m.

    4/2/2026House

  9. Hearing canceled

    4/2/2026House

  10. Hearing 4/02 at 1:00 p.m.

    3/24/2026House

  11. Referred Economic Matters

    3/21/2026House

  12. Third Reading Passed (42-0)

    3/20/2026Senate

  13. Second Reading Passed

    3/19/2026Senate

  14. Favorable Adopted

    3/19/2026Senate

  15. Favorable Report by Judicial Proceedings

    3/19/2026Senate

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

    2/12/2026Senate

  17. 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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