What’s Included in a Maryland REALTORS? Residential Contract of Sale

Alright, let’s talk about what’s actually in a Maryland REALTORS? Residential Contract of Sale—because, let’s be honest, no one wants surprises when buying or selling a home.

The Maryland REALTORS? Residential Contract of Sale is the go-to document that lays out all the terms, conditions, and protections for both parties. But here’s the thing—while it’s pretty solid, people often overlook key details that can cause headaches down the road. So, let’s break it down.

?? This contract is provided by Maryland REALTORS? and is intended for use by REALTOR? members.

A Note for REALTORS?

As a REALTOR?, your role is critical in ensuring that your clients fully understand this contract. It’s not just about filling in the blanks—it’s about making sure buyers and sellers know what they’re committing to. A well-explained contract minimizes disputes and builds trust with your clients. Keep an eye out for common pitfalls (which we’ll cover later) and always be ready to educate your clients.

1. Buyer & Seller Information

First things first—this section spells out exactly who is buying and selling the property. Names, addresses, and contact info. Double-check this. A simple typo can cause unnecessary legal issues.

2. Property Details

Here’s where the contract lays out exactly what’s being sold:

• Street address
• Property type (house, condo, townhouse, etc.)
• Parcel or tax ID number
• What’s included in the sale (appliances, fixtures, etc.)

?? Pro Tip: Always confirm this info matches the public records. Mistakes can cause delays or, worse, disputes.

3. Purchase Price & Financing

This section covers:

• The final purchase price
• How the buyer is paying (cash, loan, seller financing, etc.)
• Any conditions tied to financing

?? Pro Tip: If financing is involved, make sure your approval deadlines are realistic. Lenders don’t always move fast.

4. Earnest Money Deposit

The buyer puts down earnest money to show they’re serious. Here’s what’s covered:

• The deposit amount
• When it’s due
• Who holds it in escrow

?? Watch Out: If the deal falls through and you’re the buyer, you may or may not get this money back, depending on what happened.

5. Contingencies

Contingencies are the “get out” clauses in case things don’t go as planned. Common ones include:

• Financing Contingency – If you can’t get a loan, you can back out.
• Inspection Contingency – If an inspection reveals major issues, you have options.
• Appraisal Contingency – If the house doesn’t appraise for the agreed price, the deal might need renegotiation.
• Sale of Buyer’s Home – If the buyer has to sell their current home first, this clause protects them.

?? Pro Tip: Understand your contingencies! They can make or break the deal.

6. Key Dates & Deadlines

This section sets deadlines for:

• Loan approval
• Inspections
• Closing

?? Heads up: Missing deadlines = major contract issues. Stay on top of them.

7. Title & Closing Details

Before closing, the title needs to be clear—meaning no legal disputes or ownership issues. This section covers:

• Title search requirements
• Seller’s responsibility to provide a clear title
• How closing will happen

?? Pro Tip: If you’re the buyer, have a title search done early to avoid surprises later.

8. Disclosures

Maryland law requires sellers to disclose known defects. Typical disclosures include:

• Lead-based paint (homes built before 1978)
• Structural defects
• HOA rules and regulations

?? Sellers: Don’t try to hide issues. If a problem comes up later, it could mean lawsuits.

Illustration (Whole section 5 of Maryland REALTORS? Residential Contract of Sale)

9. Default & Dispute Resolution

If either party doesn’t hold up their end of the bargain, this section lays out what happens next:

• Penalties for breaking the contract
• Mediation or arbitration options

?? Pro Tip: Understanding your legal options now can save you a headache later.

10. Additional Terms & Conditions

Any custom agreements, like seller-paid repairs or special conditions, go here.

?? Pro Tip: If it’s not in writing, it doesn’t exist. Make sure all agreements are documented.

11. Signatures & Execution

The deal isn’t official until all required parties sign on the dotted line. Make sure everyone has signed before assuming the contract is enforceable.

Common Oversights & Issues in the Contract

Even the best contracts can have blind spots. Here are some areas where buyers, sellers, and REALTORS? tend to trip up:

?? Earnest Money Deposit – People forget this isn’t a “refundable” deposit in every scenario. Walk away for the wrong reason? You might not get it back.

?? Financing Deadlines – If you don’t get loan approval on time, the whole deal could fall apart.

?? Inspection Timelines – There’s a window to get inspections done—miss it, and you’re accepting the house as is.

?? Title Issues – If there’s a problem with the title, it’s better to know sooner rather than later.

?? Seller Disclosures – If you’re the seller, disclose everything. If you don’t, it could come back to bite you post-closing.

A little extra attention to these details can save you a world of trouble.

Final Thoughts

The Maryland REALTORS? Residential Contract of Sale is packed with important details that can make or break a real estate deal. Understanding what’s included—and what can go wrong—helps buyers, sellers, and REALTORS? navigate the process smoothly.

?? Pro Tip: If you’re unsure about any part of the contract, get legal advice before signing. A little clarity now can prevent a big mess later.