Montgomery County Jurisdictional Addendum to Sales Contract

Montgomery County Jurisdictional Addendum to Sales Contract

(Required For Use With MAR & Regional Contracts)

The Contract of Sale dated , Address

City , State Zip Lot:

Block/Square: Unit: Section: Tax ID #

Parking Space(s) # Storage Unit(s) # Subdivision/Project:

between Seller and Buyer is hereby amended by the incorporation of this Addendum, which shall supersede any provisions to the contrary in the Contract.

TIME IS OF THE ESSENCE WITH REGARD TO EACH PROVISION OF THE ENTIRE CONTRACT WHICH CONTAINS TIMEFRAMES.

1. Master Plan Disclosures. A or B required; use A unless property is in the City of Rockville corporate limits.

A. Montgomery County

Buyer has the right to examine, prior to signing this Contract, the applicable County Master Plan and any municipal land use plan for the area in which the property is located and any adopted amendment to either plan, and approved official maps showing planned land uses, roads and highways, parks and other public facilities affecting the property contained in the plan.

By signing this Addendum, Buyer acknowledges the following:

a. Seller has offered the Buyer the opportunity to review the applicable Master Plan and municipal land use plan and any adopted amendment;

b. Seller has informed Buyer that amendments affecting the plan may be pending before the Planning Board or the County Council or a municipal planning body;

c. Buyer has reviewed each plan and adopted amendment or does hereby waive the right to review each plan and adopted amendment; and

d. Buyer understands that to stay informed of future changes in County and municipal land use plans, the Buyer should consult the Planning Board and the appropriate municipal planning body.

-OR-

B. City Of Rockville

Buyer acknowledges that Buyer has been afforded the opportunity to examine the Approved and Adopted Land Use Plan Map portion of the plan for the City of Rockville and all amendments to said Map (hereinafter referred to as the “Plan”). Buyer further acknowledges that Seller's real estate agent has provided said opportunity to examine the Plan by either producing and making available for examination a copy of the Plan or escorting Buyer to a place where the Plan is available for examination by Buyer. Buyer acknowledges that at no time did the agent explain to Buyer the intent or meaning of such Plan nor did Buyer rely on any representation made by the agent(s) pertaining to the applicable Plan.

By signing below, the Buyer acknowledges that he has been afforded an opportunity to review the Plan.

2. Transfer and Recordation Taxes. Section 14-104 of the Real Property Article of the Annotated Code of Maryland provides that, unless otherwise negotiated in the contract or provided by state or local law, the cost of any recordation tax or any state or local transfer tax shall be shared equally between the buyer and seller. Transfer and recordation taxes shall be paid by:

First-Time Maryland Homebuyer Transfer and Recordation Tax Addendum Attached: Yes No

3. Private Well and Septic. If the property is on well and/or septic system, the

Buyer, at Buyer's expense, OR Seller, at Seller's expense will:

A. Provide the Buyer on or before Settlement with a certificate, dated not more than 30 days prior to Settlement, from a private water testing laboratory certified by the Maryland Department of Health and Mental Hygiene that the well water is potable.

B. Provide the Buyer on or before Settlement with a report, dated not more than 30 days prior to Settlement, from a private company, which has proof of having attended a course for septic testing approved by the Maryland Department of Environment, that the septic system is not malfunctioning, is functioning satisfactorily, or is in operating condition.

C. If either system does not meet the requirements of A or B above, the Seller, at Seller's expense, will take appropriate remedial action to rectify the deficiency and provide the Buyer with above required documents outlined in A and B on or before Settlement.

4. Notices. All notices under the contract shall be in writing. Notices to the Seller shall be effective when delivered to the Seller or an Agent of the Seller named in the contract (including a Dual Agent or an Intra-Company Agent assigned to the Seller, as applicable, or alternatively, to the Agent's Supervising Manager.) Notices to the Buyer shall be effective when delivered to the Buyer or an Agent of the Buyer named in the contract (including a Dual Agent or an Intra-Company Agent assigned to the Buyer, as applicable, or alternatively, to the Agent's Supervising Manager). "Purchaser" means "Buyer" and vice versa. "Delivery" means hand carried, sent by overnight delivery service, sent by wired or electronic medium which produces a tangible record of the transmission (such as telegram, mailgram, telecopier or "Fax", email which includes an attachment with an actual copy of the executed instruments being transmitted, or U.S. Postal mailing.)

5. Cooperative/Condominium Association Approval. If this sale is subject to the approval or right of first refusal of the Council of Unit Owners or Board of Directors of the Cooperative/Condominium, then Seller agrees to immediately present this Contract to such Council or Board for their action or consideration.

6. Foreign Investment Taxes-FIRPTA. Section 1445 of the United States Internal Revenue Code of 1986 provides that a Buyer of a residential real property located in the United States must withhold federal income taxes from the payment of the purchase price if conditions apply. Seller represents that Seller is not a foreign person and agrees to execute an affidavit to this effect at the time of Settlement.

7. Void Contract. If this Contract becomes void, all principals will immediately execute a release directing that the Deposit be refunded in full to the Buyer according to the terms of the DEPOSIT paragraph.

8. General Provisions.

A. If not previously paid, the party making Settlement is hereby irrevocably authorized and directed to deduct and pay the brokerage fee(s) or compensation to the broker(s) from the proceeds of sale in accordance with a separate listing contract or agency representation agreement and with the multiple listing service offer of compensation to cooperating agents and Buyer brokers as of the “Date of Offer.”

B. The Buyer acknowledges that Buyer has worked with no other agent on this property other than the agent(s) named herein.

C. In the event of forfeiture or default, Broker shall receive as compensation for services, an amount specified in accordance with the appropriate brokerage agreement.

D. The principals to the Contract mutually agree that the provisions hereof shall survive the execution and delivery of the deed herein and shall not be merged herein.

THE FOLLOWING PARAGRAPHS (10-13) APPLY ONLY TO THE MAR CONTRACT:

9. Definitions.

A. Days: "Day" or "Days" means calendar days unless otherwise specified.

B. Business Days: "Business Days", whenever used, means Monday through Friday, excluding federal holidays.

C. Computation of Time Periods: For the purpose of computing time periods, the first Day will be the Day following Delivery, and the time period will end at 9 p.m. on the Day specified.

D. Date of Ratification: This Contract shall be deemed ratified when the contract, all addenda and any modifications thereto have been signed and initialed, where required by all parties, and Delivered to the other party pursuant to the Notices paragraph.

10. Performance. Settlement is to be conducted by the office of the attorney or the title company examining the title.

A. Delivery to the attorney or to the title company of the cash payment and Settlement costs as herein stated, the executed deed of conveyance and such other papers as required of either party by the terms of this Contract shall be considered good and sufficient tender or performance in accordance with the terms hereof.

B. It is agreed that funds arising out of this transaction at Settlement shall be used to pay off any existing encumbrances, including interest, as required by lender(s) or lien holders.

C. Seller agrees to pay a reasonable closing fee for services rendered to the Seller.

11. Financing and Financing Application - THE PROVISIONS OF THIS PARAGRAPH SUPERCEDE THE FINANCING AND FINANCING APPLICATION AND COMMITMENT PARAGRAPHS OF THE MAR CONTRACT.

A. Financing Application. If this Contract is contingent on financing, Buyer will make written application for the Specified Financing and any lender required property insurance no later than 7 days after the Date of Ratification. Buyer grants permission for the Selling Company and the lender to disclose to the Listing Company and the Seller general information available about the progress of the loan application and loan approval process.

B. Seller Subsidy. Based on the financing terms specified in this Contract, Seller will pay at Settlement $ toward Buyer's charges.

11.C. Appraisal (Must Select Option 1 or 2)

Option (1) This Contract is contingent on Buyer obtaining an Appraisal certifying the value of the Property to be no less than the Sales Price. See Attached Addendum.

OR

Option (2) This Contract is not contingent on an Appraisal.

11.D. Financing (Must Select Option 1 or 2) Not to be used with Seller Financing

Option (1) This Contract is contingent on Buyer obtaining approval for loan(s) to purchase the Property.

Financing Deadline: days after Date of Ratification.

shall shall not be accompanied by a letter from the lender.

OR

Option (2) This Contract is not contingent upon Buyer obtaining approval for loan(s) to purchase the Property.

12. Settlement Entity. Buyer hereby authorizes the undersigned agent to order the examination of title and the preparation of all necessary conveyance documents through

13. Disputes. In the event of any dispute between Seller and broker(s) and/or Buyer and broker(s) resulting in broker(s) or any agents, subagents or employees of broker(s) being made a party to such dispute, Seller and Buyer agree to indemnify and hold broker(s) harmless.

14. Settlement Costs. NOTICE TO BUYER. Buyer has the right to select Buyer's own title insurance company, title lawyer, settlement company, escrow company, mortgage lender or financial institution.

15. Additional Default Provisions. Paragraph 26D of the Regional Contract is hereby replaced with the following: Buyer will be in Default even if the Financing Contingency has not been removed if Settlement does not occur on the Settlement Date for any reason other than Default by Seller under the conditions stated.

16. Seller Responsibility. Seller agrees to keep existing mortgages free of default until Settlement.

17. Single Family Residential Real Property Disclosure Notice. Maryland buyers are advised of the right to receive a Disclosure and Disclaimer Statement from seller unless exempt.

18. Wetlands Notice. The Buyer is advised that if all or a portion of the Property being purchased is wetlands, approval of the U.S. Army Corps of Engineers may be necessary.

19. Guaranty Fund. Notice To Buyer. The Buyer is protected by the real estate Guaranty Fund of the Maryland Real Estate Commission for losses covered by law.

20. Home And/Or Environmental Inspection. Buyer acknowledges opportunity, at Buyer's sole cost and expense, to condition purchase on inspections.

Addenda Attached Inspections Declined

21. Critical Areas Addendum. Buyer is advised that all or a portion of the property may be located in the "Critical Area" of the Chesapeake and Atlantic Coastal Bays.

22. Notice To The Parties. Brokers, their agents, subagents and employees do not assume any responsibility for the condition of the Property or for the performance of the Contract.

A. Condition of real or personal property.

B. Water quality, color or taste or operating conditions of private water systems.

C. Location, size or operating condition of private septic systems.

D. The extensions of public utilities by local municipal authorities, existence or availability of public utilities, and any assessments, fees or costs for public utilities.

E. Lot size and exact location.

F. Existing zoning or permitted uses of the Property.

G. Certain other issues including soil conditions, flood hazard areas, restrictive covenants, environmental laws, easements, airport noise, planned land use, roads or highways, construction materials, radon, mold, asbestos, and lead-based paint.

23. Deposit. Buyer hereby authorizes and directs broker to hold the initial deposit instrument without negotiation or deposit until the parties have executed and accepted this Contract.

Buyer and Seller instruct broker to place all deposit monies in:

Seller's address

Buyer's address

Seller's telephone number

Buyer's telephone number

Seller's facsimile number

Buyer's facsimile number

Seller's email address

Buyer's email address