This article, describing the requirements for Howard County, Maryland, is one in a series of compilations identifying issues that must be addressed in an agreement of sale for real estate located within particular jurisdictions in the Old Line State.

Accepting that real estate is one of the most heavily regulated industries, there are federal, state, and local government requirements of language that must be contained within an agreement for the sale for real property, and in particular in a contract involving residential property. This article compiles the requirements imposed by Howard County:

1. Notice of plans for roadway capital improvements and land use.

Sellers of new or re-sale homes are required, by Howard County Code Section 17.502, to “notify buyers that the property may be affected by plans for roadway capital improvements and land use in Howard County and that such plans are available for examination at the department of planning and zoning.”

The Section goes on to prescribe that the notice take a specific form, including that a contract must include “as an addendum or as a separate section of the contract a notice advising the buyer of the buyer’s rights … to examine the current Howard County general plan maps and current generalized zoning map.”

A prospective buyer must indicate by signing an addendum to the contract or a separate section of the contract printed in bold-face type, that:

“(i) The seller has notified the buyer of the buyer’s right to examine the current general plan maps and current generalized zoning map; and (ii) The buyer acknowledges such notification by the seller and understands that in order to become fully informed of current and future roadway improvements and land use plans, the buyer should consult the Howard County Department of Planning and Zoning, 3430 Courthouse Drive, Ellicott City, Md. 21043.”

Significantly, if the notice is provided to the buyer at the time of or within two days of entering into the contract of sale, then, not later than 11:59 p.m. on the second county government business day immediately following the date of the buyer’s acknowledgment of availability of the maps, the buyer shall have the right, upon written notice to the seller, to rescind the contract of sale and to receive the return of all deposit money paid. If notice of the availability of the maps is provided to the buyer more than two days before entering into the contract of sale, then the buyer does not have the right to rescind the contract of sale.

2. Right to new home pre-settlement inspection.

A contract of sale for a new home is required, by Howard County Code Section 17.501, to include a notice advising the buyer that “Not less that 14 hours nor more than 72 hours prior to the date of actual settlement, a buyer of a new home, or the agent of the buyer, shall have the right to inspect the new home.”

The Code goes on to provide that not later than 14 calendar days prior to the date of actual settlement, the seller must notify the buyer in writing of three possible dates and times of the pre-settlement inspection, on at least two days between 10:00 a.m. and 8:00 p.m.

The seller must arrange to have all utilities servicing the new home to be connected and turned on in order for the buyer or the agent of the buyer to inspect and test all fixtures, electrical, mechanical, including appliance, plumbing, heating and air-conditioning systems as installed in the new home.

And the right of a buyer to a pre-settlement inspection may not be waived in the contract of sale.

3. New home notice regarding oral statements or promises.

A seller of a new home is required, by Howard County Code Section 17.053, to include in the contract of sale, “in conspicuous type or form, a notice to the buyer concerning oral statements, representations, warranties, or promises made by the seller or agent of the seller.” The notice must be separately captioned or identified in the contract of sale and shall be in substantially the following form:

“NOTICE TO THE BUYER: ORAL STATEMENTS, REPRESENTATIONS, WARRANTIES AND PROMISES

Any oral statements, representations, warranties or promises made to you prior to your execution of this contract of sale by the seller or agent of the seller may not be enforceable by you against the seller or agent of the seller in any subsequent legal or administrative proceeding unless such statements, representations, warranties or promises are in writing and signed by yourself and the seller or agent of the seller. Any statements, representations, warranties or promises made to you by the seller or agent of the seller, upon which you rely, and which are not contained in this printed contract of sale form must be stated in a written addendum attached to this contract form which is to be signed by both yourself and the seller in order to make such statements, representations, warranties or promises part of the agreement between yourself and the seller and enforceable in any legal or administrative proceeding.”

Conclusion

The failure of the seller or agent of the seller to include the any of the three notices, identified in this article, in the contract of sale does not cause the contract of sale to be invalid, void, voidable, or otherwise unenforceable by the seller or buyer. The Howard County Office of Consumer Affairs may enforce these provisions, including with civil penalties of up to $500 for each offense.

Beyond the scope of this compilation of Howard County requirements, 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 provisions that may be required to be contained within a particular contract of sale for real estate or the parties risk that the contract may be voidable or worse.

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

This article simply identifies issues that must be considered by a seller or purchaser of real estate in Howard County in advance of consulting with an attorney about a final form of contract.