Construction Defect Demand Letter - Maryland

CONSTRUCTION DEFECT DEMAND LETTER

STATE OF MARYLAND

VOLUNTARY NOTICE OF CONSTRUCTION DEFECTS

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL

[DATE]

[CONTRACTOR / BUILDER / VENDOR NAME]
[ADDRESS]
[CITY, STATE ZIP]
Home Builder Registration No. (if applicable): [NUMBER]
MHIC License No. (if applicable): [NUMBER]

Re: VOLUNTARY NOTICE OF CONSTRUCTION DEFECTS AND DEMAND FOR RELIEF
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Contract / Purchase Date: [DATE]
Deed Delivery / Possession / Completion Dates: [DATES]

Dear [RECIPIENT NAME]:

This firm represents [OWNER NAME] ("Owner") regarding the defects described below. This letter gives voluntary notice of the claims, offers a reasonable opportunity to inspect, and requests a written proposal for repair or settlement. It does not create or concede a statutory cure period, extend a filing deadline, or waive any right.

A WRITTEN RESPONSE IS REQUESTED BY [DATE] ([NUMBER] DAYS AFTER RECEIPT). THIS IS A VOLUNTARY RESPONSE DATE UNLESS A CONTROLLING CONTRACT OR CLAIM-SPECIFIC RULE PROVIDES OTHERWISE.

I. MARYLAND-SPECIFIC LEGAL FRAMEWORK

A. Claim-Specific Filing Periods

Maryland does not use one filing period for every construction dispute:

Do not apply the UCC period automatically to a construction-services contract. Counsel must classify the transaction and each claim, determine accrual, and account for contractual and statutory rules before inserting a deadline.

B. Improvements-to-Realty Repose

CJP § 5-108 applies only when the covered death, injury, or property damage results from a defective and unsafe condition of an improvement to real property. The section provides:

1. a general outside period of 20 years after the entire improvement first becomes available for its intended use;
2. a shorter outside period of 10 years for a claim against an architect, professional engineer, or contractor;
3. a requirement to file within three years after a covered cause of action accrues; and
4. statutory exclusions, including specified possession-and-control and asbestos circumstances.

The statutory trigger is not generically “substantial completion,” and the 20-year period is not the contractor period.

C. Statutory New-Home Warranties

RP §§ 10-201 through 10-204 govern sales by a statutory vendor of a newly constructed private dwelling and the fixtures and structures made part of it at construction.

Under RP § 10-202, written factual affirmations or promises, written descriptions including plans and specifications, and samples or models that form part of the basis of the bargain may create statutory express warranties. Formal words such as “warranty” are unnecessary, but value statements and opinions do not create one.

Subject to the statute's scope and exclusions, RP § 10-203 implies that the improvement is:

1. free from faulty materials;
2. constructed according to sound engineering standards;
3. constructed in a workmanlike manner; and
4. fit for habitation.

The statute excludes a condition that a reasonably diligent purchaser's inspection would reveal when the contract is signed. It also supplies a particular-purpose warranty when the purchaser makes the purpose known and relies on the vendor's skill and judgment.

Contract or deed language and merger into the deed do not by themselves exclude or modify these implied warranties. For an improvement already completed when contracted for, § 10-203(d) permits exclusion or modification only through a detailed written instrument signed by the purchaser that states the affected warranty, the purchaser's consent, and the replacement terms.

D. Warranty Duration and Remedy

Under RP § 10-204, unless an express warranty provides longer protection:

• the ordinary statutory warranties generally expire one year after the earlier applicable delivery, possession, or completion event specified in § 10-204(b);
• for a structural defect, the period is two years after the earliest of completion, delivery, or possession;
• a subsequent purchaser receives only the unexpired balance, and the statutory warranties do not cover a defect caused by the original purchaser; and
• a court may award legal or equitable relief, or both, as justice requires.

These warranty-expiration rules and § 10-204(d)'s action deadline are separate calculations. Record every deed, possession, completion, discovery, and inspection date.

E. Condominium Projects

For a residential condominium, RP § 11-131 applies §§ 10-202 and 10-203 to developer sales and adds nonmodifiable warranties for individual units and common elements. The unit warranty generally lasts one year from transfer of title. The common-element warranty has separate commencement and duration rules, notice must be given within the warranty period, and suit must be brought within one year after that period. Standing differs for general and limited common elements. Use a condominium-specific analysis before sending this form.

F. Licensing and Registration Are Project-Specific

The two principal regulatory systems are not interchangeable:

• MHIC / home improvement: BR § 8-301 generally requires a contractor license for a person acting as a contractor within Title 8. BR § 8-101 covers additions, alterations, remodeling, repairs, replacements, and specified adjacent-land work, but excludes new-home construction, work satisfying a new-building completion guaranty, apartment buildings with four or more units, and condominium common areas.
• New-home builder registration: BR §§ 4.5-101 and 4.5-301 generally govern a person undertaking to construct or contract to provide a new home. The definition contains exclusions, including a person building solely in Montgomery County except as otherwise provided.

Confirm the project's classification before asserting an MHIC violation, identifying an agency, or listing a license or registration number.

G. Maryland Consumer Protection Act

If supported by the transaction and facts, CL § 13-301 may apply to a false or misleading representation, material omission, or other enumerated unfair, abusive, or deceptive practice. A private claimant under § 13-408 must have injury or loss caused by the prohibited practice. Section 13-408 permits recovery for that injury or loss and allows a damages recipient to seek reasonable attorney fees, which the court may award. It does not create automatic double or treble damages for an ordinary construction or licensing dispute.

II. PROPERTY AND PROJECT INFORMATION

A. Responsible Parties

III. DESCRIPTION OF DEFECTS

DEFECT NO. 1 — [TITLE]

Location: [SPECIFIC LOCATION]

Description and chronology:
[Describe the condition, when and how it was discovered, progression, prior notice, attempted repairs, and resulting damage.]

Affected components:
☐ Foundation / slab ☐ Framing ☐ Roof ☐ Exterior envelope ☐ Windows / doors
☐ Plumbing ☐ Electrical ☐ HVAC ☐ Insulation ☐ Interior finishes
☐ Waterproofing ☐ Drainage ☐ Common elements ☐ Other: [SPECIFY]

Supporting material:
☐ Photographs ☐ Expert report ☐ Test results ☐ Plans / specifications
☐ Contract or warranty ☐ Repair invoice ☐ Correspondence ☐ Other: [SPECIFY]

Contract, warranty, plan, code, or standard allegedly not satisfied:
[QUOTE OR DESCRIBE THE SPECIFIC REQUIREMENT AND IDENTIFY ITS SOURCE]

Date first observed: [DATE]
Date reported: [DATE]
Estimated repair cost: $[AMOUNT]
Other claimed loss: $[AMOUNT AND BASIS]

DEFECT NO. 2 — [TITLE]

[REPEAT THE FORMAT ABOVE FOR EACH DEFECT]

IV. SUMMARY OF CLAIMED LOSS

Each category must be supported by the contract and governing claim law. Listing an amount does not establish that it is legally recoverable.

V. POTENTIAL LEGAL BASES — SELECT AND CUSTOMIZE

Counsel should retain only theories supported by the parties, transaction, facts, and current Maryland law.

A. Breach of Contract

[RECIPIENT] failed to perform the obligations in [IDENTIFY CONTRACT SECTION, PLAN, SPECIFICATION, CHANGE ORDER, OR SCOPE] by [SPECIFIC BREACH].

B. Statutory Express Warranty — RP § 10-202

☐ The transaction is within RP §§ 10-201 through 10-204, and the following written affirmation, promise, description, plan, specification, sample, or model formed part of the basis of the bargain: [IDENTIFY].

C. Statutory Implied Warranty — RP § 10-203

☐ The transaction is within the statute, and the improvement allegedly was not [free from faulty materials / constructed according to sound engineering standards / constructed in a workmanlike manner / fit for habitation / fit for the disclosed particular purpose] because [FACTS].

D. Condominium Warranty — RP § 11-131

☐ The claim concerns [an individual unit / a limited common element / a general common element], notice was timely, the correct claimant is making the demand, and the defect is within the applicable statutory warranty.

E. Negligence or Other Tort Theory

☐ Counsel has identified an actionable duty and recoverable injury independent of any limitations on the selected tort theory: [IDENTIFY DUTY, BREACH, CAUSATION, AND DAMAGE].

F. Consumer Protection — CL §§ 13-301 and 13-408

☐ The following prohibited practice caused this specific injury or loss: [IDENTIFY REPRESENTATION / OMISSION / PRACTICE, RELIANCE OR CAUSAL CONNECTION, AND LOSS].

G. Regulatory Noncompliance

☐ The project is covered by [BR Title 8 home improvement / BR Title 4.5 new-home registration / other verified requirement], and the specific alleged violation is: [CITATION AND FACTS].

VI. VOLUNTARY INSPECTION AND RESPONSE PROCESS

Owner offers reasonable access for a non-destructive inspection, subject to advance scheduling and protection of the property.

Please respond in writing by [DATE] and state:

1. whether you accept, dispute, or need more information about each defect;
2. whether you request an inspection and the proposed dates, attendees, and testing;
3. whether you offer a repair, replacement, payment, or other settlement;
4. the proposed scope, contractor, permits, schedule, quality controls, and warranty for any repair; and
5. the documents supporting your position.

The requested date is voluntary unless a controlling agreement or claim-specific rule makes it otherwise. Silence does not, by itself, create a waiver, establish liability, or eliminate any inspection right. Owner reserves the right to reject destructive testing, unreasonable delay, incomplete work, or a proposal that does not address resulting damage.

Scheduling contact:
[NAME]
[ADDRESS]
[PHONE]
[EMAIL]

VII. PRESERVATION REQUEST

Please take reasonable steps to preserve potentially relevant evidence, including:

• contracts, change orders, plans, specifications, and approved revisions;
• permits, inspection records, certificates, and code correspondence;
• photographs, video, testing, daily logs, and quality-control records;
• communications with the owner, design professionals, subcontractors, suppliers, insurers, and agencies;
• product data, installation instructions, warranties, purchase records, and batch or serial information; and
• records of earlier complaints, inspections, repairs, or proposed corrective work concerning the identified conditions.

This is a preservation request, not a prediction that a court will impose a particular sanction. Preservation duties and remedies are fact- and proceeding-specific.

VIII. SETTLEMENT DEMAND

Owner proposes the following alternative resolution:

Option A — Repair Proposal

1. Written acceptance of responsibility for the agreed scope;
2. inspection and final repair protocol by [DATE];
3. performance by properly qualified and, where required, licensed or registered persons;
4. all required permits and inspections;
5. protection of occupied areas and correction of resulting damage;
6. completion by [DATE];
7. written warranty for the corrective work; and
8. payment of agreed investigation and related costs of $[AMOUNT].

Option B — Monetary Resolution

Payment of $[AMOUNT] by [DATE], subject to a negotiated written settlement and release.

This demand does not waive any filing deadline, statutory warranty, contractual right, claim, defense, or remedy. No settlement exists unless reduced to a signed writing.

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]
[ATTORNEY NAME]
Maryland Bar No. [NUMBER]
[ADDRESS]
[TELEPHONE]
[EMAIL]

Attorney for [OWNER NAME]

ENCLOSURES

☐ Defect photographs
☐ Expert or inspection report
☐ Repair estimates
☐ Contract, plans, specifications, and change orders
☐ Warranty documents
☐ Relevant correspondence
☐ Other: [SPECIFY]

MARYLAND PRACTICE CHECKLIST

☐ Classified the project as new-home, home-improvement, condominium, commercial, or mixed
☐ Identified the correct vendor, builder, contractor, developer, design professional, and claimant
☐ Recorded deed delivery, possession, completion, intended-use, discovery, and notice dates
☐ Calculated RP § 10-204 warranty expiration and action deadlines separately
☐ Analyzed CJP §§ 5-101 and 5-108 claim by claim
☐ Confirmed whether CL § 2-725 applies to a contract for sale
☐ Used MHIC only if the work falls within BR § 8-101
☐ Used home-builder registration only if BR Title 4.5 applies
☐ For condominium claims, confirmed § 11-131 notice, duration, deadline, and standing
☐ Removed unsupported waiver, adverse-inference, multiplier, fee, and liability threats
☐ Reviewed the final letter with Maryland-licensed counsel

SOURCES AND REFERENCES

• CJP § 5-101
• CJP § 5-108
• RP § 10-202
• RP § 10-203
• RP § 10-204
• RP § 11-131
• BR § 8-101
• BR Article, including §§ 4.5-301 and 8-301
• CL § 2-725
• CL § 13-301
• CL § 13-408

This template is for informational purposes only and does not constitute legal advice. A Maryland-licensed attorney must review and customize it before use.