Laws that protect you
- Maryland Home Improvement Law, Md. Code, Bus. Reg. § 8-101 et seq. — licenses contractors, sets rules for contracts and payments, and backs homeowner claims.
- Maryland Home Improvement Commission (MHIC) — issues contractor licenses, investigates complaints, and can cite a contractor from $500 to $5,000 for contract violations.
- Home Improvement Guaranty Fund — run by MHIC, it may compensate homeowners for certain actual losses caused by the acts or omissions of a licensed contractor.
- Maryland Consumer Protection Act (MCPA), Md. Code, Com. Law § 13-101 et seq. — bans unfair, abusive, and deceptive practices, and § 13-408 lets you sue for damages and attorney's fees.
- Right to cancel a home-solicited sale — contracts signed at your home generally carry a short cancellation window, usually three business days under federal law.
What a Maryland home improvement contract must include
Most contractor disputes start with a contract that was never legal in the first place. A compliant Maryland home improvement contract is in writing, legible, and signed by each party, and it must contain:
- The contractor's name, address, telephone number, and MHIC license number
- The name and license number of any salesperson who sold you the job
- A description of the work to be performed and the materials to be used
- Approximate start and completion dates
- MHIC's telephone number and website, and the notice about the Guaranty Fund and your right to ask for a performance bond
- A signed copy delivered to you before the work starts
A contractor may not accept a deposit or any payment until the contract is signed by each party.
Common problems we see
- Deposit or progress payment taken, then no crew, no delivery, no start date
- Contractor stops showing up mid-project and won't return calls
- Work that fails inspection, violates code, or was done without required permits
- Substandard, wrong, or substituted materials billed as premium
- Punch-list items never finished while the final payment is demanded
- No written contract, or a contract missing the license number and required notices
- Pressure to pay cash, pay early, or sign over a large deposit
- Door-to-door or storm-chaser sales you can't back out of
- Liens filed against your home over amounts you don't owe
What to do now
Photograph the work at every stage and keep every text, email, estimate, change order, and receipt. Check the contractor's MHIC license and complaint history before you sign anything else. Don't sign a final release or pay the remaining balance under pressure. Deadlines apply to Guaranty Fund claims, MHIC complaints, and lawsuits — and they can run from the date the problem first appeared, not the date you found it.
Frequently asked questions
- How do I know if a contractor is licensed?
- Maryland home improvement contractors must hold a license from the Maryland Home Improvement Commission (MHIC), and the license number has to appear on your contract. You can look a contractor up in MHIC's public license search before you sign anything or hand over money.
- The contractor took my deposit and never started. Can I get it back?
- Often, yes. Maryland requires a signed written contract before a contractor may accept a deposit or payment, and limits how much can be collected up front — generally no more than one-third of the contract price. A contractor who takes money and doesn't perform may be liable under the contract, the Home Improvement Law, and the Consumer Protection Act.
- What if the contractor has no license at all?
- Performing home improvement work without an MHIC license is unlawful in Maryland and can carry criminal penalties. It can also strengthen your position — but it may mean the Guaranty Fund isn't available, so the claim usually has to go directly against the contractor. Tell us early, because it changes the strategy.
- Should I stop paying the balance?
- Don't withhold payment, sign a final release, or cancel a check on your own. Nonpayment can turn into a mechanics' lien, an arbitration clause, or a collection suit against you. Get the facts first, then decide — a written, itemized list of defects and incomplete work is worth far more than a withheld check.