A purchase agreement is a type of legal document that outlines the conditions under which the seller agrees to sell, and the buyer agrees to buy a certain item.
Although the purchase agreement doesn’t transfer any legal rights between the seller and the buyer, it provides all the details of their transaction and, in that way, prevents any misunderstandings and potential disputes.
The parties should use the purchase agreement for more complex property transfers, like real estate sales and purchases, or for the transfer of items that have a purchase price of over $500.
Maryland Purchase and Sale Agreement Form
The Maryland purchase and sale agreement contains information about the seller and the buyer, the property description, the purchase price, details about the financing, contingencies, and other details about the property transfer.
The Maryland purchase agreement is also known as:
Other Names for Maryland Purchase and Sale Agreement Form
Maryland sale and purchase agreement
Maryland purchase and sale agreement
Maryland sales and purchase contract
Maryland purchase and sales contract
However, it all refers to one document that provides the terms and conditions for the property transfer in Maryland.
Purchase Agreement Maryland Laws & Requirements
The form of the Maryland purchase agreement is not mandated by any specific legislation. Nonetheless, if you are involved in a real estate transaction in Maryland, you must ensure that certain disclosures are included in the purchase agreement template.
Purchase Agreement Required Disclosures in Maryland
Here, you can see the list of required disclosures that must be included in the Maryland purchase agreement:
Lead-Based Paint Disclosure: As mandated by 42 U.S. Code § 4852d, the seller is required to disclose to the buyer any lead-based hazard in the property. This disclosure is mandatory for all properties constructed before 1978 and for properties where a lead-based paint hazard is known.
Residential Property Disclosure and Disclaimer Statement: Maryland state law requires the seller to disclose the condition of the property and inform the buyer about any defects that the property might have. The seller must deliver this statement to the buyer before they execute the purchase agreement. (§ 10-702)
Common Types of Purchase Agreements in Maryland
This section provides all the types of purchase agreements used in Maryland.
Variety of Purchase Agreement
Residential real estate purchase agreement. This type of purchase agreement form is used to determine the conditions for selling and purchasing a house, apartment, or other kinds of property used for residential purposes.
Commercial real estate purchase agreement. You can use this type of purchase agreement to sell and purchase office space, warehouses, manufacturing facilities, and other kinds of commercial properties.
Vehicle purchase agreement. Also known as the motor vehicle bill of sale. You can use it to transfer ownership of a car, motorcycle, truck, and other kinds of motor vehicles.
Business purchase agreement. You can use it to provide terms for transferring the company shares between the seller and the buyer.
Land purchase agreement. Used to provide details regarding the transfer of agricultural, residential, commercial, or other kinds of land in Maryland.
Stock purchase agreement. This type of purchase agreement is used for selling stocks and shares in companies.
Purchase Agreement in Maryland FAQ
The Maryland purchase agreement is a legally binding document. It becomes legally binding the moment both the seller and the buyer sign it.
Yes, the Maryland sales agreement must state the purchase price since the purchase price is an essential element of the sales agreement and the main obligation of the buyer.
No, purchase and sales agreements in Maryland don’t need to be notarized. This is mainly due to the fact that the document itself doesn’t transfer any legal rights between the parties.
The only situation where the seller can back out of the Maryland purchase agreement is when the buyer fails to meet the contingencies set in the document.