Maryland Land Contract Addendum Form – Fill Out and Use This PDF

Addendum Number

to Contract of Sale (the ''Contract'') dated

Buyer(s):

Seller(s):

Property:

1.

LEGAL

A Contract for the sale of real property is required to be in writing to be enforceable under the laws of the State of Maryland.

REQUIREMENT:

Once signed by the parties, the Contract becomes a legally binding agreement. The original terms of the Contract can only be

altered thereafter with the agreement of the parties expressed in writing. All parties have the right to be represented by an

attorney and are encouraged to seek competent advice if they do not understand any term(s) of the Contract. The

broker/agent is required to promptly submit all written Contract offers to the Seller.

2.

INTENDED USE:

The use of a particular property may be limited or restricted as a result of zoning laws, local ordinances and/or restrictive

covenants applicable to the property. The Contract of Sale form provided by the broker/agent is designed and intended for

use only in the purchase and sale of single-family residences or unimproved residential property. If Buyer intends to use a

property for any other purpose, the standard Contract of Sale form may not adequately serve to protect Buyer's interests

without the addition of an appropriate clause or addendum conditioning the Contract offer upon a determination that Buyer's

intended use of the Property will be permitted.

3.

SETTLEMENT:

All persons to be in title and/or responsible where a mortgage is to be created should be present at the time of settlement and

may be required to provide proper identification. Prior to settlement, a lender normally requires that Buyer obtain and provide

a fully paid homeowner's insurance policy, a termite inspection report, and various certifications which may be applicable to

improved properties. Buyer should be prepared at the time of settlement to pay the settlement costs and the balance due

under the Contract. Buyer must provide cash, wired funds, bank check or certified check for amounts to be paid at settlement.

In some cases, Seller may be required to provide funds in excess of the sales proceeds in order for settlement to occur, in

which event, Seller also should be prepared to make payment in an approved form. Any party uncertain of the amount

required at settlement should make inquiry of the title company or settlement attorney prior to settlement. Buyer should

establish gas, electric and water service in Buyer's name commencing the day of settlement.

4.

GROUND RENT:

If a Property is subject to an existing ground rent as provided in a lease recorded among the Land Records, or if a ground

rent is to be created, Seller will make those disclosures required by law by an appropriate additional clause or addendum to

the Contract.

5.

RENTAL:

If any portion of the Property is to be rented to tenants by Buyer, the local government may require that the Property be

registered prior to any rental and a yearly registration fee may be assessed by the local government. You may call the

appropriate government office for further information. If the Property is now or has been rented to tenants, local laws may give

the tenants certain rights to purchase the Property. These rights are set forth in the Contract. Effective October 1, 1994,

certain disclosures are required regarding the presence of lead based paint in certain rental properties.

6.

EQUAL HOUSING

A REALTOR® is required by federal, state and local law, and the Code of Ethics of the National Association of REALTORS®

OPPORTUNITY:

to treat all parties in a non-discriminatory manner without regard to race, color, creed, age, religion, national origin, sex,

marital status, familial status, physical or mental disability, occupation, sexual orientation or preference, or other protected

classifications under Fair Housing Laws.

7.

HOME OWNER

It a Property is part of a development subject to the imposition of mandatory fees as defined by the Maryland Home Owners

ASSOCIATIONS/

Association Act, and/or a condominium unit, Seller will make the required disclosures by an appropriate addendum to the

CONDOMINIUMS:

Contract.

8.

PRIVATE

Some communities may be subject to agreements, covenants or restrictions relating to the cost of certain maintenance items,

AGREEMENTS:

restricting the use of properties or dealing with other matters. For example, properties sharing a driveway are often subject to

such agreements. These private agreements do not fall within the required disclosures of HOA or condominium laws and may

or may not be recorded. Buyer should make inquiries of Seller prior to or at the time of Contract.

9.

WETLANDS

Buyer is advised that, if all or a portion of the Property has wetlands and/or waterways, the approval of the U.S. Army Corps

AND/OR

of Engineers (the ''Corps''), the Maryland Department of Natural Resources and other federal, state or local agencies may be

WATERWAYS:

necessary before a building permit for either new construction or expansion or improvement of the Property can be issued.

Additionally, the future use of existing improved properties may be restricted due to the presence of waterways and wetlands.

Information can be obtained from the District Office of the Corps at (410) 962-3670 and the Maryland Department of Natural

Resources at (410) 974-3841.

10.

REFORESTATION:

(Note: Applicable to property containing 40,000 or more square feet of land.) Buyer is hereby advised that if Buyer intends to

apply for subdivision or site plan approval or a grading or sediment control permit upon the Property, applicable City or

County law may require as a condition of such approval that Buyer submit plans acceptable to the City/County for

establishing new tree cover, planting trees to replace forest which has been recently removed, and conserving the cutting and

clearing of trees in accordance with applicable laws and regulations.

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Ed Smith REal Estate PO Box 371, Ocean City MD 21843

Phone: 4102132700

Fax:

Edward Smith

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13.

INSURANCE:

Buyer acknowledges that, as a condition of making a mortgage loan, lenders may require proof of hazard insurance coverage

and may also require flood insurance coverage.

14.

PROPERTY

If the appropriate contingency is included in the Contract, home inspection firms may be employed to inspect the condition of

CONDITION (HOME

the Property, including central heating and cooling systems and components, plumbing and electrical systems and

INSPECTION):

components, the roofing, exterior and interior walls, ceilings and floors, foundation and/or basement (including chronic water

penetration). If the Property is part of a condominium, Buyer's rights include access to the common areas to perform the

inspection.

15.

PRIVATE WATER

Many properties are serviced by wells and/or private water and/or sewage systems. Local laws or lenders may require

AND SEWAGE

various tests and/or inspections. If the Property is serviced by any such system, this should be addressed by a separate

SYSTEMS:

addendum to the Contract.

16.

ENVIRONMENTAL

There are many hazardous materials that could affect a Property. The Brokers and their agents will generally have no

CONSIDERATION:

knowledge of these hazardous materials and do not have the technical expertise to ascertain or advise you of the presence

HAZARDOUS

or significance of these hazardous materials. Buyer has the right to request, as a condition of an offer and, subject to

MATERIALS:

acceptance by the Seller, the employment of a specialist of Buyer's choice to provide an analysis of hazardous materials

which may be present. Hazardous materials inside the home can include, but are not limited to, cleaning chemicals, paint,

asbestos, radon, lead paint, petroleum products, lawn and garden chemicals and indoor air pollutants that can accumulate.

Hazardous materials outside the home can include, but are not limited to, those found in contaminated land, water, landfills

and other disposal sites, industrial air and water emissions, radiation from high tension wires, and those which may be

present in underground storage tanks. Generally, additional information pertaining to these materials is available from the

Maryland Department of the Environment (MDE) at (410) 631-3000.

17.

FIRE-RETARDANT

The use of fire-retardant treated (FRT) plywood as roof sheathing may result in the loss of wood strength through thermal

TREATED

degradation. The extent of such degradation depends upon the particular fire-retardant treatment used as well as the

PLYWOOD:

temperature levels and the degree of moisture present in the roof and attic systems. Additional information regarding FRT

plywood is available from the National Association of Homebuilders at (800) 368-5242. For information as to whether a

Property was constructed with FRT plywood, Buyer may contact the local Department of Building Inspections and Permits

and/or request that a home inspector determine the condition of FRT plywood if present.

18.

RADON:

The MDE and the U.S. Environmental Protection Agency (EPA) have found levels of naturally occurring radon in some areas

of Maryland that exceed the levels considered acceptable by the EPA. Studies have shown that extended exposure to high

levels of radon can adversely affect your health. Radon testing firms in the area have special equipment to detect elevated

levels of radon on a Property. They can also recommend actions to be taken to decrease concentrations of radon to an

acceptable level. Buyer is advised to contact the Center for Radiological Health at the MDE at (410) 631-3000 for further

information on radon.

19.

LEAD PAINT:

The MDE has found that many homes built before 1978 contain lead paint, the ingestion of which can be particularly

dangerous. The potential dangers of lead paint may be greatly exacerbated by repairs and renovations performed without the

assistance of a qualified lead paint removal specialist. Buyer is advised to contact the Lead Paint Poisoning Prevention

Division of the MDE at (410) 631-3000 for further information on lead paint. Specialists are available to determine if lead paint

has been used in a Property. In some cases, a lead paint inspection may be mandatory.

20.

ASBESTOS:

Asbestos has been used in residential property for insulation, fireproofing, acoustical, decorative and other purposes.

Common uses of asbestos include insulation around boilers and pipes, surfacing material, ceiling and floor tiles, roofing

material, wallboard, and cement pipe. Improper handling or removal of asbestos during renovations or repairs may damage

the asbestos and cause asbestos particles to become airborne, potentially causing health risks. Buyer is advised to contact

the MDE at (410) 631-3000 for further information on asbestos.

21.

AVAILABILITY OF

A Limited Warranty may be available for purchase through a Broker. Such a Limited Warranty may provide, subject to the

LIMITED

terms and conditions of the Limited Warranty, compensation in the event certain named components and/or appliances

WARRANTY:

become inoperable or fail during a specified period of time (usually one year from settlement).

22.

NEWLY

a) New Home Warranty Plan: If a Property is a newly constructed dwelling, Maryland law requires that Seller/Builder provide

CONSTRUCTED

Buyer with a written statement concerning the presence or absence of a New Home Warranty (addendum will be attached); b)

RESIDENCES:

Insulation: Seller/Builder must inform Buyer of the location, type and thickness (R Factor) of insulation used in the walls and

roof of the newly constructed residence; c) Water/Sewer Service: A Property may be subject to a fee or assessment which

purports to cover or defray the cost of installing or maintaining all or part of the public water or waste water facilities serving a

subdivision. This fee or assessment may be payable annually. Seller will provide Buyer with a detailed written disclosure of

the amount of the fee, the duration of the fee, and any right to prepay or discount the fee.

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23. CERTIFICATIONS:

Depending upon the type of mortgage applied for by Buyer, lenders may require certain certifications that relate to a Property

or require inspections/appraisals that certify that a Property is free of specific hazards or conditions.

25. NOTICES / FAX

Unless otherwise provided herein or in another Addendum, any notice to Buyer shall be effective when delivered to Buyer or

TRANSMISSION:

an agent of Buyer, and any notice to Seller shall be effective when delivered to Seller or an agent of Seller. Notices under the

Contract shall be in writing, and may be hand-delivered, mailed or transmitted by an electronic medium which produces a

tangible copy, such as telecopier (fax). A telecopy of a signed offer, acceptance, addendum or notice shall be deemed the

equivalent of the original document. While not required, it is suggested that documents with original manual signatures of the

parties be forwarded to Buyer and Seller in accordance with the Contract.

Date

Buyer

Date

Buyer

Date

Seller

Date

Seller

Date

Broker/Salesperson

Date

Broker/Salesperson

The Greater Baltimore Board of REALTORS®, Inc.

Harford County Association of REALTORS®, Inc.

Carroll County Association of REALTORS®, Inc.

Howard County Association of REALTORS®, Inc.

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