Maryland prompt payment

Who and what this applies to

Real Property section 9-302 payment rules, subject to section 9-305 exclusions. The owner-payment paragraph excludes contracts with the listed governmental owners.

Thresholds and scope

Section 9-305 excludes single-family construction-and-sale contracts, Custom Home Protection Act transactions and licensed MHIC home-improvement contracts.

The rules

• When the contract specifies payment dates/times, the private owner pays undisputed amounts within seven days after that date/time. Only when it specifies no dates/times does the earlier-of-30-days-after-occupancy-permit-or-possession rule apply. Source
• For a contract not with the owner, the contractor/subcontractor pays undisputed amounts to its subcontractors within seven days after receipt of the payment attributable to their work/materials. Source
• The subtitle’s residential exclusions are set out in section 9-305. Source

Primary sources

• Md. Real Property §9-302(b)(1)-(2)
• Md. Real Property §9-302(b)(3)
• Md. Real Property §9-305

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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