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How does COMAR regulate model home and referral offers?

Short answer. COMAR 09.08.01.10 regulates both. Presenting a job as a model or demonstration home to imply a discount you don't give is deceptive, and referral offers must meet specific disclosure requirements.

  • COMAR 09.08.01.10

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

A marketing consultant approaches you with a deal: "Pick a homeowner in a nice neighborhood. Do their renovation at cost. Then put a sign in their yard and tell prospects 'This is our model home — you get a discount for referrals.' People eat it up."

He guarantees you'll triple your leads.

  1. Correct

    COMAR 09.08.01.10 specifically regulates model home offers and referral offers. Using a completed job as a 'model home' to lure neighbors with implied discounts, while charging them full price, is a deceptive practice. Referral fee arrangements where homeowners are promised compensation for leads must comply with specific disclosure requirements. This consultant's scheme is a classic complaint generator.

  2. Dangerous

    While there's nothing wrong with yard signs or satisfied customer referrals, the 'model home' pitch as described is a regulated practice under COMAR 09.08.01.10. Representing a home as a 'model' or 'demonstration' project to imply special pricing, when the actual price isn't discounted, is deceptive. This is one of the specific practices the MHIC was created to regulate.

All 9 cancellation rights & consumer protection questions

  1. What must a door-to-door home improvement contract include?
  2. Does every homeowner have a 3-day right to cancel?
  3. Does a home show sale carry a 3-day right to cancel?
  4. What should you do about a pressured sale to an elderly homeowner?
  5. What happens when a contractor is accused of exploiting an elderly client?
  6. Can contractors raise prices after a storm in Maryland?
  7. Is writing a second contract for the insurance company fraud?
  8. Can you sign an invoice for more than the work you did?
  9. How does COMAR regulate model home and referral offers?