Purchase and Sale contract help!! (Maryland)

8 Replies

Hi BP community,

Does anyone have a Maryland Purchase and Sales Agreement and Assignment of Contract to use for wholesale deals that they would be willing to share? Any advice on obtaining these contracts would be greatly appreciated.

@Harlan Cox I would suggest enlisting the services of a real estate attorney instead of trusting someone elses contract on the internet. Maryland real estate law is fairly complicated, as can be seen in the contracts us agents use which can range anywhere from 30-100 pages in length. Spend the few hundred dollars now on a contract you can trust from a professional which will likely save you a lot of money in the long run if you end up in court somehow.

@Russel Thanks for the advice! But 30-100 pages in length? My purchase and sales agreement and assignment contract are both 1 page. Why would you need that many pages for said contracts?

Originally posted by @Russell Brazil :

@Harlan Cox I would suggest enlisting the services of a real estate attorney instead of trusting someone elses contract on the internet. Maryland real estate law is fairly complicated, as can be seen in the contracts us agents use which can range anywhere from 30-100 pages in length. Spend the few hundred dollars now on a contract you can trust from a professional which will likely save you a lot of money in the long run if you end up in court somehow.

 @Russel Thanks for the advice! But 30-100 pages in length? My purchase and sales agreement and assignment contract are both 1 page. Why would you need that many pages for said contracts?

@Harlan Cox That is how long the contracts are that the lawyers at GCAAR have approved. Essentially every time there is a real estate lawsuit covering a new subject in Maryland out contract length grows. In Massachusetts where I  am originally from and originally licensed, the contracts up there are just a few pages. My typical Maryland/DC contract is about 50 pages.  It is just illustrative of some of the complexities in Maryland's real estate laws. (Then DC essentially just copies what Maryland does). 

I mean where else in the country do you run into Ground Rent. I think parts of PA and VA, but Ground Rent is all over Baltimore...and really just another small thing that should be adressed in a Maryland real estate contract.

I use a simple one page contract for houses (three pages for commercial), I keep the language simple and easy to understand. I don't want to confuse the seller with a 30 page contract full contingencies.  

My offer has one contingent, that is all I need to make a deal work.  If I make an offer on a property, I've done my research and I want the building.

If I made a mistake in my judgment on a property I can go into second stage negations using my one contingent clause or just walk.

Charles

Hi BP team,

I am also looking for a simple contract to provide to distressed sellers.  Looking to avoid the typical 30-100 page GCAAR given we are going into this with zero contingencies. 

Charles/others be willing to share their "one pager" they use?

Thanks

For the most part, a successful real estate investor is smarter than most lawyers; they will build you a contract offer that has way too many words.

We have lawyers as our clients who buy and make offers on properties.

For years now I have been using a self created contract offer that is only ONE PAGE long (short). It has only one contingency in it (subject to making a profit before settlement), I also us a Skinny Hybrid offer that has been a great closer for me (it makes the seller a limited partner related to profits).

I'd say keep it simple, know your comps, understand you percentage margin for profit, make offers and do it often.