A contract of sale for residential real property in Maryland, entered into after October 1, 2006, must contain a certain statement notifying the buyer that the property may be located near a military installation that conducts certain military operations or testing.

Accepting that real estate is one of the most heavily regulated industries, there are federal, state, and local government requirements for notices and disclosures that must be contained within a contract of sale for real property, and in particular in a contract involving residential property. This article discusses a new notice requirement imposed in the 2006 Maryland General Assembly session.

The new notice, mandated by HB 298, requires all contracts for the sale of residential real property contain the disclosure. The enactment does not define “residential real property” but it is clear that the law applies to more than only single family houses and, erring on the side of caution, the notice should be included in contracts for all residentially used property (including multi-family projects) and unimproved residentially zoned property.

The notice advises a buyer that the property may be located near a military installation that conducts flight operations, munitions testing, or military operations that may result in high noise levels. Whether or not there is such a military installation anywhere near the property has nothing to do with the requirement to give the notice.

While this is a statewide requirement, if there are local laws requiring a substantially similar notice, those prevail over the bill provisions. And this disclosure requirement does not apply in Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington Counties.

Section 14-117(k) of the Real Property Article of the Annotated Code of Maryland provides that a contract for the sale of residential real property shall contain the following statement:

“Buyer is advised that the property may be located near a military installation that conducts flight operations, munitions testing, or military operations that may result in high noise levels.”

Beyond the scope of this article, be aware there are federal notices on the thickness of insulation in a new house, federal and state lead paint disclosures and warnings, state disclaimers or disclosures with respect to the condition of a property, state forest conservation notices, and a host of other notices and statements that may be required within a particular contract of sale for real estate or the parties risk that in many instances the contract may be voidable and in some instances that the execution of such a deficient contract may even be a misdemeanor.

Also beyond the statewide notice described in this article, most local governments within Maryland impose requirements on sellers of real estate, including mandates to incorporate specific statements within a contract of sale. In fact, the article Checklist of Required Real Estate Contract Provisions in Baltimore County is among the most popular articles on this firm’s website.

This article identifies the new statement that must be included in a contract of sale for residential real property, entered into after October 1, 2006, notifying the buyer that the property may be located near a military installation. Given the ever increasing regulatory environment, sellers and buyers of real estate are advised to consult with an attorney about a form of contract.