Effective October 1, 2009, a contract for the sale of a new home in Maryland shall be automatically contingent on the purchaser obtaining a written mortgage commitment, unless the sales contract contains a provision expressly stating that the sale is not contingent on the purchaser obtaining a mortgage commitment. The new law further provides that if a new home contract is contingent on the purchaser obtaining a mortgage commitment, the contract must state the maximum mortgage interest rate that the purchaser is obligated to accept.

Because this new law applies to all sales of new homes, including condominiums, all builders and sellers of new homes in Maryland should have their sales contracts reviewed for compliance with these and other applicable requirements.

Contact Information

If you have questions regarding this or other real estate issues, please contact Shelah F. Lynn, 301.664.6204, lynns@ballardspahr.com. 

Copyright © 2009 by Ballard Spahr LLP.
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