Upcoming Changes to the MAR Contract of Sale

MAR Residential Contract of Sale as of 10/08:

· Paragraph 16 – Lead Paint. This paragraph was revised to be more concise. The paragraph requires the seller to specify the date the home was constructed. Given this information, the parties will then be able to determine the extent to which the property is subject to the federal and/or Maryland lead paint laws. If the property is not subject to either law, the parties are not required to do anything else.

Paragraph 50 – Notice to the Parties. In response to the 2008 Protection of Homeowners in Foreclosure Act, paragraph 50 was revised to add a statement alerting the parties that a seller who is 60 days or more in arrears on the seller’s mortgage has a 5 day right to rescind the contract. The Act provides other protections to distressed sellers and the parties are given a reference to the law in case the parties wish to seek additional information.

New/Revised Addenda:
· “As-Is” Addendum. This Addendum allows the parties to agree that the property will be sold “as is.” There are two options. In the first, the parties can agree that the property will be sold “as is” without any inspections or contingencies regarding the condition of the property. The second option allows the buyer to inspect the property and terminate the contract if the buyer is dissatisfied with the results of the inspection. Regardless of the inspection results, the seller has no obligation to make any repairs. Finally, the Addendum language states that it supersedes any conflicting language in the Contract.
· Short Sale Addendum. The new addendum is designed to assist in navigating a short sale. The addendum:
· Property Inspections Addendum – The report and notice language in the Radon provision has been amended to mirror the report and notice language in the other sections dealing with inspections.

· Lease Option to Purchase Agreement. The Lease Option to Purchase Agreement will be used when the parties have entered into a separate lease and wish to provide the tenant with the right to purchase the property at a later date. The Option to Purchase provides that an agreed-upon portion of the monthly rental payments are applied to the purchase.