The Maryland Land Contract Addendum is a document that modifies the original contract for the sale of real property in Maryland. This addendum is essential for ensuring that any changes to the terms of the sale are documented and agreed upon by both the buyer and seller. Understanding its components is crucial for a smooth transaction; fill out the form by clicking the button below.
The Maryland Land Contract Addendum form serves as a crucial document in real estate transactions, particularly for buyers and sellers engaging in the purchase and sale of residential properties. This addendum is designed to supplement the Maryland Association of REALTORS® Residential Contract of Sale, ensuring that both parties are aware of their rights and obligations. It outlines essential elements such as the legal requirements for the sale of real property, the importance of written agreements, and the necessity of legal representation. Additionally, the form addresses specific considerations like zoning laws, settlement procedures, and the implications of ground rent. Buyers are informed about potential rental requirements, the significance of equal housing opportunity laws, and the need for disclosures related to homeowners' associations and private agreements. Furthermore, the addendum highlights environmental concerns, such as wetlands, hazardous materials, and the presence of lead paint, which may affect property value and safety. It also touches on the availability of warranties for newly constructed homes and the certifications that lenders may require. This comprehensive approach ensures that all parties involved are equipped with the necessary information to navigate the complexities of real estate transactions in Maryland.
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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®.
Misconceptions about the Maryland Land Contract Addendum Form
Filling out the Maryland Land Contract Addendum form can be tricky. Many people make common mistakes that can lead to confusion or even legal issues down the line. Here are eight mistakes to watch out for.
First, some individuals forget to include all necessary parties in the contract. It’s crucial that both buyers and sellers sign the document. If a spouse or co-owner is omitted, it could create problems later, especially regarding ownership rights. Ensure that everyone involved is listed clearly.
Another frequent error is failing to specify the intended use of the property. Buyers often assume the standard residential contract covers their needs. However, if the buyer plans to use the property for a different purpose, such as commercial use, additional clauses may be necessary. Without these, the buyer's interests may not be adequately protected.
Many also overlook the importance of providing accurate identification at settlement. All parties involved must be present and ready to show proper identification. If someone is missing or cannot verify their identity, it could delay or derail the settlement process.
Additionally, buyers sometimes neglect to inquire about ground rent. If the property has an existing ground rent, the seller is required to disclose this information. Failing to address this can lead to unexpected financial obligations for the buyer.
People often forget to check local regulations regarding rental properties. If the buyer intends to rent out part of the property, they may need to register with local government offices. Not doing this can result in fines or other penalties.
Another mistake is ignoring the need for inspections. Buyers should not skip home inspections, especially for properties that may have hidden issues. Without proper inspections, buyers might face unexpected repair costs after the purchase.
Lastly, failing to understand the implications of any private agreements or covenants can be a significant oversight. These agreements may not be part of the standard disclosures but can affect how the property can be used. Buyers should ask the seller about any such agreements before finalizing the contract.
By being aware of these common mistakes, buyers and sellers can navigate the Maryland Land Contract Addendum more effectively. Taking the time to review and understand the details can save a lot of trouble in the future.
Written Agreement Required: In Maryland, a contract for the sale of real property must be in writing to be enforceable. Once signed, the contract is legally binding, and any changes must be made in writing with agreement from all parties.
Intended Use Matters: The property’s intended use can be affected by zoning laws and local ordinances. If you plan to use the property for purposes other than residential, additional clauses may be necessary to protect your interests.
Settlement Preparations: All parties involved must be present at settlement, and proper identification is required. Buyers should be ready to cover settlement costs and provide necessary documents, such as homeowner's insurance and inspection reports.
Ground Rent Disclosures: If the property has an existing ground rent, the seller must disclose this information through an appropriate addendum. It's essential to understand any financial implications related to ground rent.
Environmental Considerations: Buyers should be aware of potential environmental issues, such as hazardous materials, wetlands, and lead paint. Conducting inspections can help identify these concerns before finalizing the purchase.
Insurance Requirements: Lenders may require proof of hazard and flood insurance as a condition for mortgage approval. It's important to understand these requirements early in the process to avoid delays.
The Maryland Land Contract Addendum is a crucial document in real estate transactions. However, it is often accompanied by several other forms that help clarify various aspects of the sale. Here is a brief overview of some commonly used documents alongside the addendum.
Understanding these documents can greatly enhance the buying or selling experience. Each form plays a specific role in ensuring that all parties are informed and protected throughout the transaction process.
The Maryland Land Contract Addendum form shares similarities with the Residential Purchase Agreement, which outlines the terms of a real estate transaction. Both documents serve as legally binding agreements that specify the rights and responsibilities of buyers and sellers. The Residential Purchase Agreement includes essential elements such as purchase price, closing date, and contingencies, much like the addendum. The addendum, however, addresses specific conditions and additional disclosures that may not be covered in the standard purchase agreement, thereby enhancing the protection of the parties involved.
Another document that parallels the Maryland Land Contract Addendum is the Seller Disclosure Statement. This statement is designed to inform potential buyers about the condition of the property and any known issues. Similar to the addendum, the Seller Disclosure Statement mandates transparency from the seller regarding the property’s condition, including any repairs or hazards like lead paint or asbestos. Both documents aim to ensure that buyers are fully informed before making a significant financial commitment.
The Lease Agreement is also comparable to the Maryland Land Contract Addendum, particularly when it comes to rental properties. While the addendum focuses on the sale of a property, it contains provisions that address rental situations, such as tenant rights and registration requirements. Both documents outline the terms of occupancy and responsibilities of the parties, ensuring that all aspects of the rental or sale process are clear and legally enforceable.
Additionally, the Homeowners Association (HOA) Disclosure is similar in that it outlines the rules and regulations governing properties within an HOA. The Maryland Land Contract Addendum includes provisions requiring sellers to disclose any HOA fees or restrictions, ensuring that buyers are aware of their obligations. Both documents aim to protect buyers by providing necessary information about community rules that could impact their property ownership experience.
The Environmental Disclosure Statement is another document that shares similarities with the Maryland Land Contract Addendum. This statement informs buyers about potential environmental hazards associated with a property, such as the presence of wetlands or hazardous materials. Like the addendum, it emphasizes the importance of disclosing environmental conditions that could affect the property's value or the health of its occupants.
The Radon Disclosure is closely related to the Maryland Land Contract Addendum as it addresses the potential health risks associated with radon exposure in residential properties. The addendum advises buyers about the need for radon testing, similar to the Radon Disclosure, which specifically informs buyers about the risks and testing options. Both documents serve to protect buyers by ensuring they are aware of potential environmental hazards before finalizing their purchase.
The Lead-Based Paint Disclosure is another important document that complements the Maryland Land Contract Addendum. This disclosure is particularly relevant for homes built before 1978, as it informs buyers about the risks associated with lead paint. Similar to the addendum, it emphasizes the seller's responsibility to disclose any known lead hazards, thereby safeguarding the health of future occupants.
The Home Inspection Contingency is also akin to the Maryland Land Contract Addendum. This contingency allows buyers to have the property inspected before finalizing the sale, ensuring that they are aware of any potential issues. Both documents emphasize the importance of thorough inspections to protect buyers from unforeseen repairs or liabilities after the purchase.
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Lastly, the Title Insurance Policy bears similarities to the Maryland Land Contract Addendum in that it provides protection against defects in the title of the property. The addendum may include provisions regarding title insurance, ensuring that buyers understand their rights and protections. Both documents aim to secure the buyer's investment by addressing potential legal issues related to property ownership.