The Maryland Land Contract Addendum is a document used in conjunction with the Maryland Association of Realtors® Residential Contract of Sale Form. This addendum allows parties involved in a real estate transaction to modify the original terms of their contract in writing, ensuring clarity and legal enforceability. If you're ready to make adjustments to your contract, fill out the form by clicking the button below.
The Maryland Land Contract Addendum form serves as an important supplement to the Maryland Association of REALTORS® Residential Contract of Sale form, addressing various aspects of real estate transactions in the state. This addendum outlines the legal requirements for real estate contracts, emphasizing the necessity of written agreements to ensure enforceability. It highlights the importance of understanding the intended use of a property, as zoning laws and local ordinances may impose restrictions. The addendum also details the settlement process, indicating the necessary documentation and payments required from both buyers and sellers. Additionally, it addresses various considerations such as ground rent disclosures, rental regulations, and equal housing opportunity laws, which ensure non-discriminatory practices in real estate transactions. Environmental factors, including wetlands, hazardous materials, and lead paint, are also discussed, providing buyers with essential information regarding potential risks associated with a property. Furthermore, the form includes provisions related to insurance requirements, home inspections, and warranties for newly constructed residences. By utilizing this addendum, all parties involved in a real estate transaction can better understand their rights and responsibilities, ultimately facilitating a smoother buying or selling experience.
UNIMPROVED LAND CONTRACT ADDENDUM
ADDENDUM dated _________________________________________________ to Contract of Sale
between Buyer ____________________________________________________________________
and Seller ________________________________________________________________________
for Property known as ______________________________________________________________.
The following provisions are included in and supersede any conflicting language in Maryland REALTORS® Unimproved Land Contract of Sale (the Contract).
Only those paragraphs 1 - 11 initialed by both Buyer and Seller shall apply to this Unimproved Land Contract Addendum.
1. SURVEY BY A LICENSED SURVEYOR:
Boundary Survey
Site Improvement Survey
Property Corners located and marked
•Survey to be ordered by Buyer Seller.
•Survey to be completed, and results delivered to Buyer (if ordered by Seller) within
___________________ ( ____) days from the Date of Contract Acceptance.
• Cost of survey to be paid by
Buyer
Seller or
as follows:
________________________________________________________________________
2.BUYER AND SELLER TO PHYSICALLY INSPECT THE PROPERTY BOUNDARIES TOGETHER ON OR BEFORE _____________________________________________. (Date)
3.OTHER BOUNDARY REVIEW AS INDICATED:
___________________________________________________________________________.
Regarding paragraphs 1, 2 and 3 (if initialed), in the event the Buyer is dissatisfied with the results of the survey or boundary review, Buyer may terminate the Contract by delivery of written notice to Seller within __________________ (____) days from the Date of Contract
Acceptance, and all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
4.PRICE ADJUSTMENT: In the event a boundary survey performed by a licensed surveyor shows the total acreage to be conveyed is more or less than the size indicated in the Contract, the Contract price shall be adjusted as follows:
•If size is in excess of ___________________( ac./ sq. ft.), price shall be increased by $ __________________ per ( ac./ sq. ft.) prorated over the excess amount.
•If size is less than _____________________ ( ac./ sq. ft.) price shall be decreased by $ __________________ per ( ac./ sq. ft) prorated over the difference.
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5.SIZE OF PROPERTY IS A MATERIAL CONSIDERATION IN THIS CONTRACT: In the event a survey by a licensed surveyor indicates the size of the property to be conveyed is less
than _________ (
ac./ sq. ft.) Buyer may terminate the Contract by delivery of written
notice to Seller within ______________ (___) days from the Date of Contract Acceptance, and
all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
6.SUITABILITY/FEASIBILITY FOR BUYER’S PURPOSE: Buyer will secure, at Buyer’s expense and risk, satisfactory feasibility studies to determine whether the Property is acceptable for Buyer’s intended use as _____________________________ (type of use). In the event Buyer, in Buyer’s sole discretion, determines the contemplated use is not feasible, Buyer may terminate the Contract by delivery of written notice to Seller within ____________
(____) days from the Date of Contract Acceptance, and all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
7.PERMITS: Buyer will obtain (or determine Buyer can obtain) all permits required for Buyer’s intended use as ____________________________________ (type of use). The cost to obtain all necessary permits shall be the expense of Buyer. If permits cannot be obtained, Buyer may terminate the Contract by delivery of written notice to Seller within _____________
8.ENVIRONMENTAL INSPECTION: Buyer will obtain, at Buyer’s expense and risk, an inspection of the property by a qualified expert selected by Buyer. Such inspection(s) may include, but are not limited to, the existence and integrity of underground oil/gasoline tanks and the presence of hazardous materials. In the event Buyer, in Buyer’s sole discretion, determines the inspection report is not satisfactory, Buyer may terminate the Contract by delivery of written notice to the Seller within __________________(days) from the Date of Contract Acceptance, and all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
9.PROOF OF VALID PERCOLATION TEST: Seller shall provide Buyer written evidence of a valid percolation test satisfactory to Buyer from the appropriate governmental authority within
_____________ (____) days from the Date of Contract Acceptance. Should Buyer not receive such evidence, Buyer may terminate the Contract by delivery of written notice to Seller within
_____________ (____) days from the Date of Contract Acceptance, and all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
10.PERCOLATION TEST: A valid percolation test, satisfactory to Buyer, shall be obtained at a location satisfactory to Buyer within ____________ (___) days from the Date of Contract Acceptance from the appropriate governmental authority. Should test results be unsatisfactory to Buyer, Buyer may terminate the Contract by delivery of written notice to Seller within
______________ (____) days from the Date of Contract Acceptance, and all Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
•
Percolation test to be ordered by:
Buyer or
Seller
Percolation test to be paid by:
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Unimproved Land Contract Addendum
11.WELL DRILLING: A well shall be drilled on the property at a location acceptable to Buyer within _____________(____) days from the Date of Contract Acceptance. The well shall meet all requirements of appropriate governmental authorities in regard to location, depth, water yield, and water quality.
Well Drilling to be ordered by:
Cost of well permits, drilling, and testing to be paid by:
as follows: ________________________________________________________
•Total cost of well not to exceed $ _____________________________________
If well is drilled but does not meet appropriate governmental authorities’ standards, or if the cost of drilling an acceptable well is estimated to exceed the total cost specified above, any incomplete well shall be capped at the expense of the party paying for well drilling, and either Buyer or Seller may terminate the Contract by delivery of written notice to the other party within
_________________(____) days from the Date of Contract Acceptance, and all Deposit(s)
shall be disbursed in accordance with the Deposit(s) paragraph of the Contract.
12.BUYER MAY BE REIMBURSED FOR COSTS: If Seller is unable to convey title in accordance with terms of the Contract without fault of Buyer, Seller shall promptly reimburse Buyer for any costs incurred by Buyer in Paragraphs 1 through 11 above, upon being furnished by Buyer with receipts for the actual payment of such costs. Reimbursement liability on the part of the Seller shall not exceed $_____________________.
13.RESTORATION OF PROPERTY: In the event Buyer i) defaults under the terms and conditions of this Agreement OR ii) terminates this Contract as herein provided, Buyer shall, at Buyer’s sole cost and expense, restore the Property to its original condition and shall remove all debris and grade and re-seed ground cover in all areas which result from or were disturbed or damaged as a result, directly or indirectly, from any test(s) or inspection(s) performed by Buyer, whether such debris, disturbance or damage was caused by Buyer or any third-person(s), including contractors(s) or subcontractor(s) performing such test(s) or inspection(s). Seller acknowledges that Broker and/or real estate licensees affiliated with Broker are not responsible i) for damage to the Property resulting from a test(s) or inspection(s) as herein provided and ii) for any restoration of the Property, including removal of debris, resulting from test(s) or inspection(s).
All other terms and conditions of the Contract of Sale remain in full force and effect.
__________________________________________
Buyer Signature
Date
Seller Signature
_________________________________________
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Copyright 2023 Maryland REALTORS®. For use by REALTOR® members of Maryland REALTORS® only. Except as negotiated by the parties to the Contract, this form may not be altered or modified in any form without the prior express written consent of Maryland REALTORS®.
Completing the Maryland Land Contract Addendum form requires careful attention to detail. This form is essential for documenting any changes or additional agreements related to a real estate transaction. Below are the steps to fill out the form accurately.
The Maryland Land Contract Addendum form is a document designed to modify or add specific terms to the standard Maryland Association of Realtors Residential Contract of Sale. It provides additional legal protections and clarifications regarding the sale of real property in Maryland.
This form is primarily intended for buyers and sellers involved in the purchase and sale of single-family residences or unimproved residential property in Maryland. It is especially useful for parties who need to address specific conditions or requirements that may not be covered in the standard contract.
In Maryland, a contract for the sale of real property must be in writing to be enforceable. Once signed, the contract becomes a legally binding agreement. Any changes to the original terms must also be made in writing and agreed upon by all parties involved.
At settlement, buyers should ensure that all individuals who will be on the title are present and have proper identification. They should also be ready to provide a fully paid homeowner's insurance policy, a termite inspection report, and any other necessary certifications. Buyers must pay the settlement costs using cash, wired funds, or certified checks.
If any part of the property is intended to be rented, local governments may require registration and a yearly fee. Additionally, if the property has been rented previously, tenants may have certain rights to purchase the property. Buyers should also be aware of lead paint disclosures if the property was built before 1978.
If the property is subject to an existing ground rent, the seller is required to disclose this information through an appropriate clause in the contract. Ground rent can affect the overall cost and ownership rights associated with the property.
Buyers should consider the presence of wetlands or waterways, as these may require approvals from federal or state agencies before any construction or expansion can take place. Additionally, properties may have hazardous materials, such as lead paint or asbestos, which require special attention and potential remediation.
If a property is part of a development with mandatory fees or is a condominium, sellers must disclose this information in the contract. Buyers should be aware of the associated fees and regulations that may impact their ownership experience.
Buyers have the right to request inspections for hazardous materials, such as radon or lead paint, as part of their offer. It is advisable to consult with specialists to assess any potential risks associated with these materials before finalizing the purchase.
Incomplete Information: One common mistake is failing to fill in all required fields. Every section of the Maryland Land Contract Addendum form must be completed accurately. Missing information can lead to delays or complications during the transaction.
Incorrect Dates: It's crucial to double-check the dates entered on the form. Entering the wrong date can create confusion about the timeline for the contract, including important deadlines for contingencies and settlement.
Failure to Disclose Ground Rent: If the property has an existing ground rent, it must be disclosed. Buyers should ensure that this information is clearly stated in the addendum to avoid future disputes.
Ignoring Zoning Restrictions: Not considering the intended use of the property can lead to issues. Buyers should verify that their intended use complies with local zoning laws and include any necessary clauses in the addendum.
Neglecting to Include Contingencies: Buyers often forget to include important contingencies, such as home inspections or financing conditions. These contingencies protect the buyer's interests and should be clearly stated in the addendum.
Not Seeking Legal Advice: Many individuals fill out the form without consulting an attorney. It’s wise to seek legal guidance if there’s any uncertainty about the terms or implications of the contract.
The Maryland Land Contract Addendum form is a crucial document in real estate transactions, particularly for residential properties. It serves to clarify and modify the terms of the main contract, ensuring that both parties are aware of their rights and obligations. Along with this addendum, several other forms and documents may be utilized to facilitate the transaction. Below is a list of these commonly used documents, each with a brief description.
These documents collectively help ensure that the real estate transaction is conducted smoothly and transparently. It is advisable for all parties involved to review these forms carefully and seek professional guidance if needed to protect their interests.
The Maryland Residential Lease Agreement is similar to the Maryland Land Contract Addendum in that both documents establish terms and conditions regarding the use of a property. While the Land Contract Addendum is primarily focused on the sale of property, the Residential Lease Agreement outlines the rental terms between a landlord and tenant. Both documents require clear communication of responsibilities, rights, and obligations, ensuring that all parties understand their commitments. They also emphasize the importance of written agreements to protect the interests of all involved parties.
The Maryland Purchase Agreement is another document that shares similarities with the Land Contract Addendum. This agreement serves as the foundational contract for the sale of real estate, detailing the terms of the sale, including price and contingencies. Like the Land Contract Addendum, it is essential for this document to be in writing to be legally enforceable. Both documents can include addendums to address specific concerns or conditions related to the property, ensuring that buyers and sellers have a clear understanding of the transaction.
The Maryland Homeowners Association (HOA) Disclosure Statement is also comparable to the Land Contract Addendum. This document provides information about the rules and regulations governing a property within an HOA. Similar to how the Land Contract Addendum outlines specific conditions related to the sale of a property, the HOA Disclosure Statement informs potential buyers of any fees, restrictions, and responsibilities associated with living in a community governed by an HOA. Both documents aim to ensure that buyers are fully informed before making a commitment.
The Maryland Seller's Disclosure Statement is another important document that aligns with the Land Contract Addendum. This statement requires sellers to disclose known defects or issues with the property, providing buyers with crucial information before finalizing a sale. Like the Land Contract Addendum, it is designed to protect both parties by promoting transparency and informed decision-making. This disclosure helps prevent disputes by ensuring buyers are aware of any potential problems before they proceed with the purchase.
The Maryland Real Estate Agency Disclosure is similar to the Land Contract Addendum in that it clarifies the relationship between the parties involved in a real estate transaction. This document informs buyers and sellers about the role of real estate agents and their fiduciary responsibilities. Both documents aim to establish clear expectations and responsibilities, ensuring that all parties understand the implications of their agreements and the agents' roles in facilitating the transaction.
The Maryland Contract for Sale of Real Property is another document that bears resemblance to the Land Contract Addendum. This contract serves as the main agreement for buying and selling real estate, outlining essential details such as purchase price and contingencies. The Land Contract Addendum often modifies or supplements this primary contract, addressing specific needs or concerns of the parties involved. Both documents are essential in ensuring that the sale process is conducted fairly and transparently.
The Maryland Option to Purchase Agreement is comparable to the Land Contract Addendum as it grants a potential buyer the exclusive right to purchase a property within a specified timeframe. This agreement typically outlines the terms under which the option can be exercised, similar to how the Land Contract Addendum modifies the terms of a sale. Both documents provide a framework for negotiating the sale of property, ensuring that all parties are aware of their rights and obligations during the transaction.
The Maryland Right of First Refusal Agreement is similar in nature to the Land Contract Addendum, as it grants a party the first opportunity to purchase a property before the owner can sell it to someone else. This agreement outlines the terms and conditions under which the right can be exercised. Like the Land Contract Addendum, it establishes important terms that protect the interests of the involved parties, ensuring that potential buyers have a fair chance to acquire the property.
The Maryland Lease-Purchase Agreement also shares similarities with the Land Contract Addendum. This hybrid document allows a tenant to rent a property with the option to purchase it later. It combines elements of both leasing and buying, providing a unique pathway to property ownership. Both agreements require clear terms and conditions to protect the rights and responsibilities of all parties involved, ensuring that both the landlord and tenant understand their obligations.
Finally, the Maryland Real Estate Settlement Procedures Act (RESPA) Disclosure is comparable to the Land Contract Addendum in that it ensures transparency in real estate transactions. This disclosure provides information about settlement costs and procedures, helping buyers and sellers understand the financial aspects of the sale. Like the Land Contract Addendum, it aims to protect consumers by ensuring they are fully informed about the costs associated with their property transactions.
When filling out the Maryland Land Contract Addendum form, there are important dos and don’ts to keep in mind. Here’s a straightforward list to guide you:
This form is designed for use by anyone involved in a real estate transaction, including first-time homebuyers. It provides essential information and protections that all parties should understand, regardless of their experience level.
While the contract becomes legally binding upon signing, it can be altered if both parties agree to the changes in writing. This means that buyers and sellers can negotiate terms even after the initial agreement is made.
In fact, the Maryland Land Contract Addendum addresses various environmental issues, including the presence of hazardous materials like asbestos and lead paint. Buyers are encouraged to seek additional inspections to ensure the property is safe.
Buyers should be aware that local governments may require registration of rental properties. This process is not automatic, and failure to register could lead to legal complications.
The addendum contains important information that is relevant throughout the entire process of buying or selling a property, not just at settlement. Understanding these details early on can help avoid issues later.
While real estate agents are knowledgeable, they are not a substitute for legal counsel. Buyers and sellers are encouraged to consult with an attorney if they have questions about the contract or specific terms.
Understanding the Maryland Land Contract Addendum form is essential for both buyers and sellers. Here are some key takeaways to keep in mind: