Contractor Problems in Maryland: Complaints and Your Options

Where to file a complaint

A complaint may be filed with MHIC against a contractor or salesperson using its complaint form. A Guaranty Fund claim form is separate, and you get it from the investigator assigned to your complaint. Source

State recovery fund

The MHIC Guaranty Fund pays up to $30,000 per claimant, or the amount paid to the contractor if less, and no more than $250,000 to all claimants for one contractor, prorated if exceeded. A claim must be filed within three years of discovering the loss. It is not available if you hired an unlicensed contractor, and it excludes consequential damages, attorney's fees and court costs. Source

Contract and cancellation rules

A home improvement contract must be in writing, legible and signed by each party, with a signed copy to you before work begins. It must list the contractor's MHIC license number, the work and materials, and approximate start and completion dates. A contractor cannot accept a deposit above one-third of the price or any payment before signing. Contracts secured by residential real estate must say you can rescind in writing within three business days after signing. Source

Liens on your home

A home improvement contract that creates a lien must state on its first page that it creates a mortgage or lien against your property to secure payment. This is about a lien in the contract itself. This page does not cover mechanics lien notices from subcontractors. Source

This is general information, not legal advice. A topic we don't list means we couldn't confirm it on an official page, not that the protection doesn't exist.

Maryland licensing and costs · All states

General information, not professional advice. Conditions, codes and prices vary. Turn off power, gas or water before any work, and hire a licensed professional when in doubt. Cost figures are our estimates, not quotes.