House Bill 747, introduced in Maryland on March 15, 2025, aims to enhance the regulation of on-site wastewater systems during property transfers. The bill establishes requirements for inspections of these systems, which are crucial for maintaining public health and environmental standards.

The primary provision of House Bill 747 mandates that any contract for the sale of real property served by an on-site wastewater system must include a clause requiring the purchaser to ensure that the system has been inspected by a licensed professional. This inspection must occur prior to the transfer of ownership, ensuring that the wastewater system is functioning properly and complies with state regulations. The bill specifies that these requirements will take effect on January 1, 2026.

Notably, the bill outlines exceptions to these requirements. Property transfers between current spouses, parents and children, or siblings are exempt, as are transactions involving mortgage refinancing or changes in ownership that do not introduce new parties. Additionally, properties that have undergone an inspection within the last five years or are being transferred for the first time after construction are also excluded from the inspection requirement.

The introduction of House Bill 747 has sparked discussions among lawmakers and stakeholders regarding its implications for property transactions and public health. Proponents argue that the bill will help prevent potential environmental hazards associated with malfunctioning wastewater systems, thereby protecting both residents and the environment. Critics, however, express concerns about the potential burden on property buyers and sellers, particularly in terms of added costs and delays in the transaction process.

As the bill progresses through the legislative process, its impact on the real estate market and public health initiatives in Maryland will be closely monitored. If passed, House Bill 747 could set a precedent for stricter regulations on wastewater management in property transactions, reflecting a growing emphasis on environmental sustainability and public safety.