§ 14-117. Property sales contract requirements
West's Annotated Code of MarylandReal PropertyEffective: October 1, 2021
Effective: October 1, 2021
MD Code, Real Property, § 14-117
§ 14-117. Property sales contract requirements
(a)(1) In this subsection, “water and sewer authority” includes a person to which the duties and responsibilities of the Washington Suburban Sanitary Commission have been delegated by a written agreement or in accordance with a local ordinance.
(2) A contract for the initial sale of improved, residential real property to a member of the public who intends to occupy or rent the property for residential purposes shall disclose the estimated cost, as established by the appropriate water and sewer authority, of any deferred water and sewer charges for which the purchaser may become liable.
(3)(i) In Prince George's County, a contract for the initial sale of residential real property for which there are deferred private water and sewer assessments recorded by a covenant or declaration deferring costs for water and sewer improvements for which the purchaser may be liable shall contain a disclosure that includes:
(4) If the appropriate water and sewer authority has not established a schedule of charges for the water and sewer project that benefits residential real property or if a local jurisdiction has adopted a plan to benefit residential real property in the future, the contract for the initial sale of the residential real property shall disclose that fact.
“NOTICE REQUIRED BY MARYLAND LAW REGARDING DEFERRED WATER AND SEWER CHARGES
This property is subject to a fee or assessment that purports to cover or defray the cost of installing or maintaining during construction all or part of the public water or wastewater facilities constructed by the developer. This fee or assessment is $___, payable annually in (___month___) until (___date___) to (___name and address___) (hereafter called “lienholder”).
There may be a right of prepayment or a discount for early prepayment, which may be ascertained by contacting the lienholder. This fee or assessment is a contractual obligation between the lienholder and each owner of this property, and is not in any way a fee or assessment imposed by the county in which the property is located.”.
(b)(1) Violation of subsection (a)(2) or (4) of this section entitles the initial purchaser to recover from the seller:
(c)(1) A contract for use in the sale of residential property used as a dwelling place for one or two single-family units shall contain, in the manner provided under paragraph (2) of this subsection, the following statement:
“Section 14-104 of the Real Property Article of the Annotated Code of Maryland provides that, unless otherwise negotiated in the contract or provided by State or local law, the cost of any recordation tax or any State or local transfer tax shall be shared equally between the buyer and seller.”
(d) A contract or an addendum to the contract for the sale of real property shall contain in conspicuous type the following statement:
“Notice to buyer concerning the Chesapeake and Atlantic Coastal Bays Critical Area
Buyer is advised that all or a portion of the property may be located in the “critical area” of the Chesapeake and Atlantic Coastal Bays, and that additional zoning, land use, and resource protection regulations apply in this area. The “critical area” generally consists of all land and water areas within 1,000 feet beyond the landward boundaries of State or private wetlands, the Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal tributaries. The “critical area” also includes the waters of and lands under the Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal tributaries to the head of tide. For information as to whether the property is located within the critical area, buyer may contact the local department of planning and zoning, which maintains maps showing the extent of the critical area in the jurisdiction. Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties do not include land located in the critical area.”.
(e) A contract of sale shall also comply with the following provisions, if applicable:
(f) Unless otherwise specifically provided, a contract of sale is not rendered invalid by the omission of any statement referred to in this section.
“Notice: under § 9-241 of the Environment Article of the Annotated Code of Maryland, the Department of the Environment is required to maintain permanent records regarding every permit issued for the utilization of sewage sludge, including the application of sewage sludge on farm land. A prospective buyer has the right to ascertain all such information regarding the property being sold under this transaction.”
(i)(1) This subsection applies to Baltimore City and all other counties except Montgomery County.
(2) A contract for the initial sale of a new home, as defined in the Maryland Home Builder Registration Act,1 shall include the following:
2. Under the federal National Manufactured Housing Construction and Safety Standards Act,2 to the extent applicable;
(j)(1) A contract for the initial sale of a new home, as defined in the Maryland Home Builder Registration Act, shall be contingent on the purchaser obtaining a written commitment for a loan secured by the property, unless the contract contains a provision expressly stating that it is not contingent.
(k)(1) This subsection does not apply in Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties.
“Buyer is advised that the property may be located near a military installation that conducts flight operations, munitions testing, or military operations that may result in high noise levels.”.
(2) Subject to paragraph (3) of this subsection, if Anne Arundel County or the State has initiated enforcement action for a violation of a local law described in § 5-106(aa)(1) of the Courts and Judicial Proceedings Article, a contract for sale of the real property where the violation occurred shall disclose:
(m)(1) This subsection applies only to a development that contains 11 or more new homes to be built by the same home builder.
(2) A contract for the initial sale of a new home, as defined in the Maryland Home Builder Registration Act, shall contain an acknowledgment that the purchaser was provided by the home builder with written information about any energy-efficient options, including a statement that tax credits may be available related to the energy-efficient options, that are available for installation in the home before construction of the home is completed.
(n) A contract for the sale of residential property shall include:
Credits
Added by Acts 1980, c. 288, § 1, eff. Jan. 1, 1981. Amended by Acts 1987, c. 633; Acts 1989, c. 236, § 4; Acts 1989, c. 756, § 1; Acts 1990, c. 6, § 13; Acts 1990, c. 596; Acts 1991, c. 55, § 1; Acts 1993, c. 324; Acts 1994, c. 3, § 13, eff. Feb. 28, 1994; Acts 1995, c. 3, § 1, eff. March 7, 1995; Acts 1997, c. 729, § 1, eff. Oct. 1, 1997; Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 1999, c. 654, § 1, eff. Oct. 1, 1999; Acts 2000, c. 522, § 1, eff. Jan. 1, 2001; Acts 2001, c. 560, § 1, eff. Oct. 1, 2001; Acts 2002, c. 60, §§ 1, 2, eff. Oct. 1, 2002; Acts 2003, c. 21, § 1, eff. April 8, 2003; Acts 2004, c. 396, § 1, eff. Oct. 1, 2004; Acts 2006, c. 568, § 1, eff. Oct. 1, 2006; Acts 2007, c. 5, § 1, eff. March 22, 2007; Acts 2007, c. 288, § 1, eff. July 1, 2007; Acts 2007, c. 289, § 1, eff. July 1, 2007; Acts 2007, c. 550, § 1, eff. Oct. 1, 2007; Acts 2009, c. 92, § 1, eff. Oct. 1, 2009; Acts 2010, c. 72, § 5, eff. April 13, 2010; Acts 2014, c. 441, § 1, eff. Oct. 1, 2014; Acts 2015, c. 22, § 5; Acts 2015, c. 428, §§ 2, 3, eff. July 1, 2015; Acts 2015, c. 472, § 1, eff. Oct. 1, 2015; Acts 2016, c. 638, § 1, eff. Oct. 1, 2016; Acts 2018, c. 680, § 1, eff. Oct. 1, 2018; Acts 2018, c. 681, § 1, eff. Oct. 1, 2018; Acts 2021, c. 333, § 1, eff. June 1, 2021; Acts 2021, c. 592, § 1, eff. Oct. 1, 2021.
MD Code, Real Property, § 14-117, MD REAL PROP § 14-117
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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