Contract in Maryland/MAR Contract

Real Estate Wholesaling · Laurel, MD · Member since 2015 · 18 posts · 8 votes

Do I have to use a MAR (Maryland Association of Realtors) Contract? Or can I make my own contract? I'm curious because I joined a local REIA and they wanted me to use a MAR contract. I really need help on this guys.

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

10y

@Luis Aviles The MAR contract is copywrited material, so only those with permission, Realtors, can use it. I prefer the Regional Contract (Also a Realtor contract) myself.

What contract you use is going to depend on the property. If it is an MLS listed property...you should seek the services of an agent to write a contract. If it is an off market property, I would suggest hiring a real estate attorney to write up your contract. Maryland real estate law can be surprisingly complicated compared to other states, which can be seen in the length of contracts us agents use. Also much of the terminology used in contracts means something very different to the layman than it means to agents, courts, lawyers etc. As @Account Closed mentioned one term "Time is of the essence" means something very different in a contract than it does to the layman.

It may cost you some money having an attorney write up a contract for you, but I think it is going to be money well spent in the long run.

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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
10y
You can use your own contract in Maryland , Now whether someone will sign your contract is the question.
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Luis Aviles
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Real Estate Wholesaling · Laurel, MD · Member since 2015 · 18 posts · 8 votes
10y
yeah that's what i'm afraid of. I may be losing out on deals. Do I have to be a Realtor to use a MAR contract?
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Account Closed
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
Real estate agents representing others for a commission must use approved contracts.
I am a broker representing myself, as such I can write an offer on a napkin if I want. I've created my own contract that I call a skinny, it is a one page contract that says everything I need to say to control real estate.
When making an offer through an agent using an MAR contract (20-30 pages), I write an addendum that negates clauses I don't like, like Time is of the essence. As an investor I don't want that in my offer.
Charles Parrish
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
@Luis Aviles The MAR contract is copywrited material, so only those with permission, Realtors, can use it. I prefer the Regional Contract (Also a Realtor contract) myself.
What contract you use is going to depend on the property. If it is an MLS listed property...you should seek the services of an agent to write a contract. If it is an off market property, I would suggest hiring a real estate attorney to write up your contract. Maryland real estate law can be surprisingly complicated compared to other states, which can be seen in the length of contracts us agents use. Also much of the terminology used in contracts means something very different to the layman than it means to agents, courts, lawyers etc. As @Account Closed mentioned one term "Time is of the essence" means something very different in a contract than it does to the layman.
It may cost you some money having an attorney write up a contract for you, but I think it is going to be money well spent in the long run.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
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Luis Aviles
OP
Real Estate Wholesaling · Laurel, MD · Member since 2015 · 18 posts · 8 votes
10y
See the problem is that I'm not a realtor yet. So that's why I wanted to know more before I put myself in deep waters. I know that Maryland can be tricky and that's why as someone that's not a realtor, I don't think I have the advantage on this one.
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Account Closed
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
Contract Engineeting
Here's some ideas for you. Find and read as many contracts as you can, understand every word and what the meanings are.
Understand your what you want to accomplish; buy and hold, control and roll, short term assignment, joint venture .... Words have meaning....... Subjec to or contingent upon, which one to use?
"Time is of the essence", this a legal term, do you want it your contract when offering to buy?
Should you use calendar days or banking days in your offer?
With owner financing do you want to offer a principal mortgage or one that has a stated interest amount?
With owner financing should you build in a percentage discount if paid off early?
What about a subordination clause in your owner financed mortgage, think about that?
Do you understand the benefit of "substitution of collateral"?
Will you consider a profit disclosure In your contract offer?
Do you understand and would you consider a hybrid offer?
A well written contract could be considered a work of art.
Wishing you good luck,
Charles Parrish
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Marc M.
Contractor · Rockville, MD · Member since 2014 · 423 posts · 135 votes
10y
Seems like your question has been answered nicely above. If you come across any good flips you'd be interested in selling, please pass them along.
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Christina R.
Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
10y
If you are not a realtor - or if you are a realtor but not acting in the capacity of one because you are a principal in a transaction - you can write a contract on a napkin too. Write it on something because in real estate , contracts MUST be in writing to be enforceable.
Are you doing an assignment? A contract for purchase and sale? You can search BP for good examples of theses in the FilePlace under the Resources tab above.
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Account Closed
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
As long as you are representing yourself you can write a contract on a napkin!
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Tony Roberts
Member since 2019 · 21 posts · 8 votes
6y
Thanks Charles, those are all great options to consider when creating a contract. Thanks for the gems!
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