Section 12-119 - Real property closing costs. - Maryland Statutes

§ 12-119. Real property closing costs.
 

(a)  Applicability of section.- This section applies to any application for a loan, other than a commercial loan, to be secured by a first mortgage or first deed of trust on a borrower's primary residence. 

(b)  Required notice.- Any lender that imposes fees on borrowers for settlement services, or document review services, performed by a lender-designated attorney, or who conditions settlement on the employment of a particular attorney or title insurance company under § 12-120 (c) of this subtitle, shall provide a prospective borrower with a written notice stating: 

(1) The lender's requirements concerning selection of an attorney, title insurance company, or other person to perform settlement services relating to the purchase of the real property; 

(2) The borrower's ability to choose an attorney or title insurance company under § 12-120 (c) of this subtitle; and 

(3) A good faith estimate of the fee or fees to be charged to the borrower. 

(c)  Time of notice; copy to accompany loan application.- If notice is required by this section: 

(1) The notice shall be provided at the time of or within 3 days after the application for a loan, or earlier upon request; and 

(2) A copy of the notice, signed by the applicant, shall accompany any executed application for a loan. 
 

[1986, ch. 628; 1990, ch. 339.]