Maryland adopted a rule requiring a shared appreciation disclosure be provided to a borrower in connection with a shared appreciation agreement. Under the adopted rule, if a borrower submits an application for a shared appreciation agreement, the lender must provide a shared appreciation disclosure to the borrower no later than 10 business days after the application is completed. If the terms of the agreement are subject to change, a 2nd shared appreciation disclosure must be provided to the borrower at least 72 hours prior to closing stating that the terms are no longer subject to change. The shared appreciation disclosure must be provided in the form provided in the rule adoption (or a substantially similar form). The rule also sets forth the method for calculating the property value, actual appreciation and final payment amount required to be included on the shared appreciation disclosure. The rule went into effect November 25, 2024.
Click to view the Maryland Disclosure 2024 – Appendix A: https://www.tenaco.com/wp-content/uploads/2024/12/Maryland-Disclosure-2024-Appendix-A.pdf
Click to view the MD RA 126018: https://www.tenaco.com/wp-content/uploads/2024/12/MD-RA-126018-11-22-24.pdf
