WHAT THE MARYLAND RESIDENTIAL CONTRACT
OF SALE SAYS AND WHAT IT MEANS
This is a Legally Binding Contract, If Not Understood, Seek Competent Legal Advice
Explanation: Contracts, if completely executed and accepted by all parties and all terms and conditions are agreed,
are binding on all parties, buyer(s) and seller(s). This contract was written and approved by attorneys and is
approved by the Maryland Association of Realtors. Any edits to this contracts must be initialed or signed by all
parties to the contract.
TIME IS OF THE ESSENCE. Time is of the essence of this Contract. The failure of Seller or Buyer to perform any act
as provided in this Contract by a prescribed date or within a prescribed time period shall be a default under this
Contract and the non-defaulting party, upon written notice to the defaulting party, may declare this Contract null
and void and of no further legal force and effect. In such event, all Deposit(s) shall be disbursed in accordance
with Paragraph 19 of this Contract.
Explanation #1: If the buyers and sellers agree to a 10 day home inspection period and the buyer fails to have the
home inspection performed and the notice of defects to the seller within 10 days, the buyer loses his rights to
have the home inspection and to request any repairs.
Explanation #2. If the seller is unable to provide a clear title to the property, the contract provides for the seller
to cure any defects liens, etc. on the tite within 14 days. If the seller fails to cure defects on the title within the
time permitted, the buyer may declare the contract null and void.
PARAGRAPHS
1. DATE OF OFFER:
This is the date on which the offer is written for the buyer to be presented to the seller.
2. SELLER:
Full name of Seller or Sellers.
3: BUYER:
Full name of Buyer or Buyers.
4. PROPERTY: Seller does sell to Buyer and Buyer does purchase from Seller, all of the following described Property (hereinafter
“Property”) known as __________________________________________________________________located in ______________
____________City/County, Maryland, Zip __________, together with the improvements thereon, and all rights and appurtenances
thereto belonging.
Identifies the location of the property being sold by street address, city/county, Maryland, Zip Code. Improvements
means any structure, house, garage, shed, fence, etc.
5. ESTATE: The Property is being conveyed: _____ in fee simple or _____ subject to an annual ground rent, now existing or to be
created, in the amount of __________________________________ Dollars payable semi-annually, as now or to be recorded among
the Land Records of ______________ City/County, Maryland.
Describes the type of property being sold, i.e., fee simple, the highest type of property ownership possible, free of
any other claims against the title with all rights to improve, use and transfer.
6. PURCHASE PRICE: The purchase price is ____________________________________________________.
This is the price offered by the buyer to the seller as of the date of the offer. This price can be accepted, rejected or
countered by the seller.
7. PAYMENT TERMS: the payment of the purchase price shall be made by Buyer as follows:
(a) An initial Deposits by way of ___________ in the amount of _____________________ at the time of the offer.
(b) An additional Deposit by way of ___________ in the amount of ____________________ to be paid within _________
days from the Date of Contract Acceptance.
(c) All Deposits will be held in escrow by: _________________________________________.
(If not a Maryland licensed real estate broker, the parties may execute a separate escrow deposit agreement.)
(d) The purchase price less any and all Deposits shall be paid n full by Buyer in cash, wired funds, bank check, certified
check or other payment acceptable to the settlement officer at settlement.
(e) Buyer and Seller instruct broker named in paragraph (c) above to place the Deposits in: (Mark One)
___ A non-interest bearing account:
OR ___ An interest bearing account, the interest on which, in absence of default by Buyer, shall accrue to the
benefit of Buyer. Broker may charge a fee for establishing an interest bearing account.
This paragraph describes the EARNEST MONEY deposited by the buyer into an escrow account to show GOOD FAITH
on the part of the buyer. If the buyer defaults or fails to cooperate with the finance terms offered and agreed to by
the parties, the buyer’s earnest money
8. SETTLEMENT: Date of Settlement ______________________________ or sooner if agreed to in writing by the parties.
This is the date the parties will agree to settle the sale. The buyer will pay the remainder of the money owed after
deducting the Earnest Money Deposit held in escrow. A default may occur if either party fails to “settle”.
9. FINANCING: Buyer’s obligation to purchase the Property is contingent upon Buyer obtaining a written commitment for a loan
secured by the Property as follows:
(Mark) ____Conventional Loan as follows:
Loan Amount $______________________
Term of Note _______________________ Years
Amortization _______________________ Years
Interest Rate _______________________ %
Loan Program ______________________
Loan Origination/Discount Fees (as a % of loan amount):
Buyer agrees to pay ________%
Seller agrees to pay _________%
Buyer shall receive the benefit of any reduction in fees.
___ FHA Financing Addendum
___ Gift of Funds Contingency Addendum
___ Owner Financing Addendum
___ VA Financing Addendum
___ Assumption Addendum
___ OTHER: _______________
___ No Financing Contingency
BUYER will describe the type of loan by which he plans to finance the purchase and seller will accept, reject or counter.
The Seller is accepting this Buyer’s offer partly based upon the type of financing described in this Paragraph. The
Buyer will present a letter or loan commitment from a lender verifying that the Buyer is qualified for the financing
described in the offer.
