Great answers so far -- but let me add my 2 cents worth! From what I have seen of some of the contracts provided to agents in other states by their associations or brokers, the one used here is Maryland is far more complete in covering details and defining expectations on both sides. And some of my clients, moving here from states where agents prepare a statement of intent which then goes to attorneys for each side to become a contract, have found that issues which weren't in dispute become so when two more parties get involved. Of course, that can happen here with agents, too.

It's important that you know that Maryland real estate agents may not act as attorneys -- in other words, they may not interpret the contract. However, they should go through the contract language with you so you know what you are signing. If you have any questions, feel unsure about what you are signing, or have an agent push the papers in front of you and say, "just sign here," you should get an attorney who actively practices real estate law here. You might want to ask your agent to go through a blank contract with you before you find your house here so that you'll understand it when you're ready to make an offer.

Patrick,

You have a number of very good responses to your question thus far. I would like to restate that the state and county Boards of Realtors are regularly reviewing and revising the documents we as Realtors use. And although Maryland is not generally considered to be low in attorneys, we have one of the highest per capita counts in the country, the approach we take does allow for the purchase and sale of homes with forms that are realitively unbiased. If you are purchasing a home without an agent, you may want to have an attorney draw up the agreement.

This process does not limit your rights as a consumer as Maryland is very much a buyer advocacy state. The contract typically used in Howard County referred to as the MAR contract actually has provisions in it (paragraph 34) that require buyer and seller to participate in mediation prior to litigation. This helps keep the home sales process costs down. It is important however that you work with a Realtor who has a strong knowledge of the laws invoked by the contract and can structure a transaction that addresses all of your priorities and concerns.

All of this does require Realtors licensed in Maryland to be held to a high level of liability. If you would like to see if a licensee has been less than responsible you can check with the Maryland Real Estate Commissions web site for complaints or sanctions levied.

The Maryland Association of Realtors(r), the various County Associations as well as major brokerage firm attorneys have already drawn up forms which cover the normal scenarios and issues buyers and sellers are likely to face. Hence with the assistance of a knowledgeable agent who would know which forms need to be used for a particular type of transaction, most residential transactions do not require an attorney since most transactions involve the completion of forms and making decisions by checking off check boxes, and by placing initials, figures, dates, and signatures. The settlement company will usually have an in-house attorney review closing documents for a nominal fee. If however, a contract dispute arises and the issues cannot be resolved amicably, an attorney is usually required. I think the NY method is probably good for the agents since they do not have the higher levels of liability that we agents in MD have to take on -- however I think the MD method ends up costing buyers and sellers a lot less money -- this is probably in line with MD's philosophy of being a consumer friendly state.

It is my understanding that Maryland real estate procedures are drastically different than NY and NJ.

For example, some previous customers of mine from NJ just couldn't understand that lawyers are not required in the transaction here in MD. Ultimately they moved on to another Realtor, because they thought I was out of my mind!

From my discussions with them, in NJ (and possibly NY), attorneys are the ones who negotiate contracts verbally up front and then when a consensus is reached, the agreement is reduced to writing.

In MD, attorneys periodically review and amend the Maryland Association of Realtors contract of sale, which is basically a boilerplate document having withstood the test of time and courts. The MAR contract and related addenda serve as the basis for a contract of offer, and negotiations, if necessary, result from this initial offer.

So the bottom line is that MD is very different than NY/NJ, and here in MD, attorneys are optional and most often avoided altogether. Obviously if someone defaults in their contractual obligations, then attorneys will probably be involved to one degree or another. If a contract is signed and agreed by all parties, in MD the only attorney typically involved is the one who presides over settlement.

It is actually fairly uncommon, at least when an agent is involved, and the Maryland Association of Realtors contract is used. The contract is specifically written to be neutral, aside from whatever dates, prices, deposits, etc. that you fill in. You can always have an attorney review the contract, but once that starts then the other side will want an attorney to review.... and that of course can get expensive.

I have worked with several clients from New York, and they seemed to prefer the Maryland way, as it was less contentious, and faster. You say you are purchasing a home, so this question should likely be asked of your agent, unless you are buying directly from an owner, or are buying from a builder. If you are buying directly from an owner, a title company can help you with preparing the contract. If you are buying from a builder, they have their own contracts that of course favor them, and it is very unlikely that they would amend anything in the contract.