Dorchester County Maryland Home Builder Ordered to Pay $31,000 Penalty

Bayly Crossing, LLC Operated as Unregistered Home Builder

BALTIMORE, MD (August 8, 2007) - Maryland Attorney General Douglas F. Gansler announced today that his Consumer Protection Division has issued a Final Order requiring Bayly Crossing, LLC, Theodore B. Passyn, Julia Beall Passyn, and Theodore B. Passyn, III to comply with the Home Builder Registration Act and to accept responsibility for the houses that Bayly Crossing sold to consumers. The Order also requires them to pay more than $31,000 in civil penalties and costs for operating as an unregistered home builder and using an illegal contract clause that sought to waive their liability to consumers.

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The Division found that the Passyns, owners of Bayly Crossing, LLC, had violated an earlier consent order by failing to register the company as a home builder. While unregistered with the Division, the company entered into contracts with 10 consumers agreeing to “sell and construct” new homes in the Bayly Crossing subdivision in Dorchester County. The Division further found that Bayly Crossing’s contracts violated the Consumer Protection Act by illegally limiting consumers’ rights to bring actions related to home building.

“Efforts by home builders to evade legal and regulatory protections for Maryland consumers will not be tolerated,” said Attorney General Gansler. Before entering into a contract, consumers can check whether their home builder is properly registered by checking the Attorney General’s website at www.oag.state.md.us/homebuilder, or by calling the Home Builder Unit toll free at (877) 259-4525.

In addition to requiring the Passyns to register any future entity prior to operating as a home builder, the Division’s order prohibits the Passyns and Bayly Crossing from seeking to enforce the illegal liability waiver.

Source: Maryland Attorney General