Maryland Home Improvement Commission Complaint

A contractor took your deposit and disappeared, or the work is so bad you need someone else to redo it. In Maryland, you have two recovery paths — a complaint to the Maryland Home Improvement Commission (MHIC) or a small claims lawsuit — and choosing the wrong one can waste months.

The MHIC Route

The MHIC regulates licensed home improvement contractors in Maryland. If your contractor holds an MHIC license, you can file a complaint through the Commission, which may result in disciplinary action against the contractor's license and, in some cases, recovery from the Guaranty Fund.

The Guaranty Fund pays homeowners who suffered financial losses due to a licensed contractor's misconduct. But the process has limits:

• The contractor must be MHIC-licensed at the time of the work.
• Fund payouts are capped and can take months to process.
• The MHIC investigates the complaint on its own timeline — you don't control when it's resolved.
• Recovery through the Fund may not cover your full loss.

The upside: you don't need to go to court, serve process, or enforce a judgment yourself. If the Guaranty Fund approves your claim, you get paid without a lawsuit.

The Small Claims Route

Filing in District Court under the small claims docket (claims up to $5,000) gives you a judicial judgment — a legal debt the contractor owes you, with 10% annual interest until paid. The original trial date is set within 60 days of filing when the response deadline is 15 days, and within 90 days when it is 60 days.

The Guaranty Fund requires establishing that the contractor was licensed, while Small Claims Court can provide a judicial route against licensed or unlicensed operators.

Which One to Choose

Choose the MHIC Guaranty Fund when:

• The contractor is MHIC-licensed (verify on the MHIC website).
• You'd rather avoid court entirely.
• Your loss is within the Fund's payout limits.
• You're willing to wait for the Commission's investigation timeline.

Choose small claims court when:

• The contractor is unlicensed or their license is lapsed.
• You want a faster resolution with a hearing date you can predict.
• You want a judgment that can be enforced through garnishment or a lien if the contractor doesn't pay.
• Your loss is $5,000 or less.

Choosing between routes matters: The claimant must elect between District Court litigation and administrative recovery through the MHIC Guaranty Fund.

Filing the Small Claims Case Against a Contractor

Before you file Form DC-CV-001, search the SDAT database to find the contractor's registered business name and Resident Agent. Don't sue the trade name on the truck — sue the LLC or corporation on file with the state. If they operate as a sole proprietorship with no registration, sue the individual.

File in the county where the contractor resides, has a business office, or where the home improvement work was performed. Attach the contract, proof of payment, photos of incomplete or defective work, and your demand letter with proof of delivery.

The Maryland small claims filing guide walks through the full contractor dispute filing process, including the SDAT entity lookup and evidence preparation for home improvement claims.

See more Maryland guides →