Contracts and Transaction Documents
The core documents
Listing agreements, buyer-broker agreements, and purchase contracts are all contracts and must satisfy the Statute of Frauds: writing, signature of the party to be charged, and essential terms. Maryland requires written brokerage agreements identifying the term, compensation, and the parties' obligations. Purchase contracts in Maryland typically use regional forms (GCAAR/MAR) and operate on the principle that time is of the essence, so contingency dates are enforced strictly.
Contingencies and deadlines
Common contingencies: financing (loan amount, rate, deadline), appraisal, home inspection, wood-destroying insects, radon, condominium/HOA document review, and sale of the buyer's home. Missing a deadline or failing to object generally waives the contingency and puts the deposit at risk. Watch calendar-day versus business-day counting and how the contract defines 'day.'
Disclosures in the transaction
Maryland Residential Property Disclosure or Disclaimer Statement, lead-based paint pamphlet and 10-day inspection opportunity for pre-1978 housing, condominium/HOA resale disclosures, and inspection rights for new construction.
Earnest money
The deposit is held in the broker's trust account. It is not what makes the contract binding, but it is the seller's leverage if the buyer defaults. Releasing a deposit in a dispute requires written agreement of the parties or a court order.
Traps
Believing an offer is accepted after verbal counteroffers; believing an inspection contingency lets a buyer cancel for cosmetic dislikes when the contract defines material defects; issuing a 'time is of the essence' notice orally.
Rule of thumb: put every contract date on a calendar the day it is signed.