Buying On A Land Contract
Real Prop. § 10-102 — a signed copy, recording within 15 days, and a deed at 40 percent
In Maryland, a land installment contract is signed by all parties and contains all their terms. At or before the purchaser signs, the vendor delivers an exact copy; if the vendor had not signed it then, a signed copy is due within 15 days after notice that the purchaser signed, and if it is not delivered the contract is void at the purchaser's option, with an immediate refund on demand.
Cancel before the signed copy, or before recording. Until the purchaser signs and receives a copy signed by the vendor, the purchaser has an unconditional right to cancel and receive an immediate refund of all payments and deposits. The vendor records the contract within 15 days after both sign and mails the recorder's receipt to the purchaser; if that is not done, the purchaser may cancel for a full refund any time before the vendor records it.
- A disclosure of each recent transfer of the property, its sale price, and the vendor's substantiated cost of repairs or improvements.
- Whether the vendor has received written notice from a public agency requiring repairs or improvements.
- The purchaser's right to accelerate any installment payment.
- In simple tabular form, the cash price, any charges, insurance, the down payment, the principal balance, each installment and the interest, with no points charged.
Forty percent buys the deed. If the contract fixes no earlier point, once 40 percent or more of the original cash price is paid, the purchaser may demand a deed, on executing a purchase money mortgage to the vendor or to a lender the purchaser finds. The mortgage payments may not exceed the contract's without the purchaser's consent, and the deed and mortgage supersede the contract entirely.
Mortgages on the property. No vendor may place or hold a mortgage on the property for more than the balance due under the contract, or one requiring payments larger than the contract requires.
| The assumption | What the law actually does |
|---|---|
| The assumptionThe buyer waits for the last payment to get a deed | What the law actually doesAt 40 percent of the cash price, the purchaser may demand a deed with a mortgage |
| The assumptionAn unrecorded contract binds the buyer anyway | What the law actually doesUntil the vendor records it, a buyer whose contract was not recorded in time may cancel for a full refund |
Mortgages, leases with an option to buy, and the details of a forfeiture or foreclosure case are not all on this page. Whether a particular agreement is a land contract under the statute, and what it allows, is a question for a licensed Maryland attorney.
Sources for this section (3)
- Md. Code, Real Prop. § 10-102 — Land installment contracts: signing, copies, cancellation and recording
- Md. Code, Real Prop. § 10-103 — Land installment contracts: required contents and application of payments
- Md. Code, Real Prop. § 10-105 — Land installment contracts: deed and mortgage at 40 percent
Legal information, not legal advice. Verified as of October 2026. Applying it to a particular situation is the work of a licensed Maryland attorney.