New Forms You May See in a Maryland Real Estate Transaction
The Maryland REALTORS® office has a state-wide forms library that holds original copies of forms for real estate transactions that are readily accessible and usable for all members of the Maryland REALTORS® association. The Library holds forms including contracts, disclosures, and agendas for the use of settling and finalizing the purchase and sale of real estate.
At the beginning of October 2022 the Maryland REALTORS® brought many changes to the required forms in real estate transactions. There were significant changes that resulted in a total of nine new forms to the standard real estate transactional forms. These forms include re-organizing the residential contract of sale and five revised forms one of them including the property inspections addendum.
Brand New Forms for Septic Systems
One brand new form brought to the required set of forms is the advanced treatment unit or ATU and or the use of the best available technology the BAT septic system disclosure. These forms provide communication about systems that utilize technology approved by the Maryland Department of Environment for removing nitrogen from on-site sewage disposal systems.
These new Maryland state real estate forms regarding septic systems on Maryland properties require that home sellers disclose the existence of septic systems on the property and also require the seller to provide documentation and information to potential buyers that allows the new potential owner of the property to be in compliance with any required septic system maintenance in the state of Maryland. The form also helps a buyer to be able to have knowledge of the property being in compliance with any required testing and reporting for the septic system.
It is good to note that not all brand-new or replacement septic systems that have been installed in Maryland properties are required to be under ATU or BAT compliance. It is good to confirm the type of septic system on the property to make sure these forms are required in the real estate transaction.
A major change to the property inspection addendum
There is a new property inspections addendum form in the library and it has the ability for buyers to unilaterally terminate the contract offer if they have a dissatisfaction with the results of the inspection. The former inspection addendum form did not enable homebuyers to terminate their accepted offer without requesting necessary repairs first and waiting for the seller to deny the request. This, In a way, has made the as-is addendum unnecessary so it is no longer found in the forms library.
Additional noteworthy changes to the inspection addendums
Another new and noteworthy change that was made to the property inspection addendum is the inclusion of inspections for wood-destroying insects. Previously this right to a special inspection for this focus was within the original residential contract of sale. Formerly the residential contract of sale had a standard agreement that the seller would pay up to 2% of the purchase price offer made on the home to account for any needed repairs from wood damage due to insect infestation if it was found. This has been removed from the standard residential contract of sale and relocated to an inspection addendum.
Additionally, the Veteran's Administration has also made changes to policies and will allow buyers with VA financing to cover the cost of wood-destroying insect inspections and repair costs. This means that if a home buyer with VA financing wishes to negotiate payment for damages caused by termites with a home seller they can do so by activating the inspection on the property inspection addendum.
With the new form changes to contracts for real estate transactions, it is important as ever to make sure you carefully look over the terms in a real estate sales contract. It is always important to have an experienced Maryland real estate agent help walk you through a contract to help you make the best-informed decision.
For more information on Maryland real estate especially real estate in West Ocean City and surrounding areas please contact us any time.
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