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

SB 691 amends Maryland law to clarify rules for terminating residential real estate contracts using contingency clauses (e.g., inspections, appraisals, or disclosures). It requires escrow agents or brokers holding trust money to return funds to buyers within 5 days if the seller doesn’t provide a court complaint or mediation request within 10 days of the buyer’s termination notice. This directly affects homebuyers, sellers, and real estate professionals handling residential transactions. The bill streamlines the process by setting clear timelines for fund distribution while allowing sellers to contest distributions through formal channels. It takes effect October 1, 2026.