Section 7-310 - Rescission of contract. - Maryland Statutes

§ 7-310. Rescission of contract.
 

(a)  Right to rescind.- In addition to any other right under law to rescind a contract, the homeowner of a residence in default has the right to rescind a contract for the sale or transfer of the residence in default within 5 days after the execution of the contract. 

(b)  Void provisions.- Any provision in a contract or other agreement concerning a sale or transfer of a residence in default that attempts or purports to waive the homeowner's rights under this title, consent to jurisdiction for litigation or choice of law in a state other than Maryland, consent to venue in a county other than the county in which the property is located, or impose any costs or filing fees greater than the fees required to file an action in a circuit court, is void. 

(c)  Use of quitclaim deed prohibited.- Except when a primary mortgage lender takes a deed in lieu of foreclosure, a sale or transfer of a residence in default may not be executed using a quitclaim deed. 

(d)  Notice.- A notice of rescission under this section: 

(1) Shall be in writing but need not take any particular form specified in this subtitle or any form contained in any agreement with the purchaser or transferee; and 

(2) Is effective, however expressed, if it indicates the intention of the homeowner to rescind the contract. 

(e)  Right may not be conditioned on repayment of funds.- The right to rescind may not be conditioned on the repayment of any funds, provided however that any debt existing prior to a rescission shall continue to exist. 

(f)  Return of deed.- Within 10 days after receipt of a notice of rescission, the purchaser or transferee shall return, without condition, any original deed, title, contract, and any other document signed by the homeowner. 

(g)  No recordation during five-day rescission period.- During the 5-day rescission period, a deed or other document affecting title to the homeowner's residence in default may not be recorded. 
 

[2008, chs. 5, 6.]