December 10th, 2023
For Marylanders, buying land or a house is an exciting prospect but the homebuying process can easily go wrong if the original title documents are missing or the purchase documents are not clear. The home-buying process can become a nightmare if any of the documents needed to purchase the property in question are incomplete, invalid, or missing.
Prospective buyers should consult a real estate attorney or an experienced real estate agent to know the list of original documents, digital copies, financial records, and/or mandatory disclosures you need, to make a house or land purchase.
Let us begin by compiling a list of documents needed by a potential purchaser for buying land or a home in the State of Maryland.
From experience, many Marylanders confuse the deed of a house with its title.
The legal rights to a property are called its title. The title indicates who has rights to the property in question. The deed is the document that records the titles or ownership of the property and any transfer of the titles between parties.
When you buy a house in Maryland like in the other 49 States, you hire a Title Company to conduct a search of the people who have the legal rights to the said property. The company verifies if the seller is indeed the sole and rightful owner of the property and if anyone else may claim a right to it. The Title Company submits a Preliminary Title report that includes all its findings on the property's titles.
The Preliminary title report includes information on the legal description of the property as per the county records, legal ownership of the property, previous occupant, encumbrances, if any, etc. this report is of great importance to current owners or sellers, buyers, real estate agents, title insurance companies, etc.
The purchase agreement is the most common sales contract for any property. It contains the details of the sale of the property with full contact information of both parties, the legal address of the property, etc. This purchase contract includes the names, addresses, signatures, etc. of both the parties, closing costs, closing date of the sale, etc.
This purchase agreement is the precursor to the sale deed. It promises the future transaction based on certain mutually agreed conditions. The sale deed confirms the agreement and concludes the sale.
While the purchase agreement can be on non-judicial stamp paper, a sale deed in the State of Maryland must be judicial paper and is valid only after the buyer pays the stamp duty, property registration charges, etc. the sale deed confirms the transfer of title between the seller and the buyer.
The seller's affidavit is also called the affidavit of title and goes by even other names in other states. This is a notarized document from the seller. It confirms that he is the legal owner of the property and also mentions any title defects like leases, outstanding contracts for sale, liens and work on the property creating liens, boundary line disputes, etc.
Many counties in Maryland require that the buyer and seller should sign a transfer tax declaration indicating the purchase price during the sale of a property. They calculate the transfer tax based on this price and also charge it as real property transfer taxes.
If you are applying for a mortgage loan on a property in Maryland, you need a handful of the following documents to get the loan.
Mortgage lenders need a land survey before offering a loan. This survey gives a fair appraisal of the property outlining its boundaries, land measurements, etc. For agricultural land, farm surveying is done to amp out the area under cultivation. If the property is a plot of land under construction for apartment buildings, then a construction survey would be needed.,
Mortgage lenders need every buyer to have active homeowner's insurance until the mortgage is paid off. Do ensure you have all the Homeowners' insurance records in proper shape. Check our detailed post about Homeowner's insurance.
Before you complete your land transaction or home sale, get hold of a copy of the receipts of property taxes paid by the previous owner on them. This will know if any pending dues exist as outstanding property taxes before the purchase.
Real estate transactions whether a new residential property, resale property, or farm property must be handled with care and attempted with caution. Potential buyers looking for a property in Chestertown or nearby areas can take the advice of a seasoned real estate broker or agent like Billy Sutton, Realtor at Coldwell Banker Chesapeake Real Estate before you get started.
Billy will help you put together all these documents of the above checklist before completing a home or land contract sale. Call Billy Sutton today at (443) 480-2447 or the office at(410) 778-0330 to discuss a sale or purchase of property on the Eastern Shore in Maryland.
Billy Sutton was great to work with on the purchase of our poultry farm. He provides a wealth of knowledge and we were completely blown away with how resourceful he was. Anytime an issue came up or we were worried about something, he had an answer. He is direct, kept us updated, and made it an enjoyable purchase.
Eddie P.❉April 27th, 2020
Billy contacted me one day and said he had found my way into the poultry business. I had never used a realtor before so this was all new to me. He was very helpful with every question I had. He made sure I was stress free every step of the way, always made sure I had everything done that needed to be so that we were always a step ahead, and always informed me of things to be done that I didn't know about. I would highly recommend using Bill Sutton as your realtor.
Dylan P.❉April 22nd, 2020
A very trustworthy and professional agent. I would definitely recommend him.
Brett D.❉March 9th, 2020
Billy was a fantastic realtor. Being a first time home buyer I was a little stressed and nervous, however, Billy made it stress free and was always wiling to come whenever I needed to show me a house, or answer a phone call to explain something to me. I would definitely recommend Billy to anyone that is buying a house, first time, or fifth time!
Patrick C.❉March 6th, 2020
It was great working with Billy, He is very dedicated to his clients and will go out of his way to satisfy your needs. So if your looking for a hard working realtor Billy is your guy!!!!!
David W.❉November 1st, 2019
If i could give 10 stars I would. Billy was a perfect fit for us. He is a true professional and was very understanding of our concerns. Billy was a great listener. He was with us the entire way. You can call him anytime with question and you will get a very prompt answer. We will definitely use Billy in the future with any real estate needs that might arise. You cannot go wrong with Billy.
Dave K.❉October 26th, 2019
I've heard horror stories over the years in regards to realtors, I guess those people didn't have the right realtor because Billy Sutton did an amazing job, I was looking at houses 2 1/2 hours apart and one way or another he would always show up full of energy and full of knowledge. It's been two years and we still communicate with one another and I recommend him 100%
Jorge V.❉October 9th, 2019
Billy was a pleasure to work with. He's knowledgeable, hard working, and sold my home quickly for a great price. I highly recommend!
Andrew M.❉October 2nd, 2019
Billy is a very knowledgeable real estate agent. If you have a home to sell, give him a call.
Patricia S.❉October 1st, 2019
Billy is incredibly knowledgeable in real estate and talked me through every step of the home buying process for my first home. I went into the process well informed and confident in my decision to buy, and would recommend Billy to anybody looking to purchase a home.
Nick M.❉September 29th, 2019
Lacey is an amazing person she listens to what you want in your dream home and takes the time to find the home that is perfect for you and your family. I totally recommend her to anyone.
Tanya C.❉April 17th, 2020
Lacey was a amazing realtor she worked tirelessly to find us a house that our family would love and she knocked it out of the park. Thank you so much for the hard work you put in.
Larry G.❉March 6th, 2020
I couldn't of asked for a better person helping us with our home! She's highly professional and made sure we found our dream home. Lacey always made time for us as clients and worked so hard to make everything go as smoothly as possible.
Stephanie D.❉March 5th, 2020
Lacey is amazing! She is so patient, understanding, honest and fair! She is everything you would want in a realtor but rarely find. The home buying and selling is a whole process that can be overwhelming and almost impossible if you don't have the right person on your side. She is so caring and pays attention to details you couldn't ask for anyone better to be there with you as you make such an important decision.
Cassi P.❉September 25th, 2019
I have known Lacey for over 15 years. She is one of the most detail oriented and hardworking people I know. I have watched her help people and over again!! I would recommend her to anyone!
Amanda B.❉September 25th, 2019
Whether you’re selling or buying a home for the first time or the tenth time, we’re here to help the process go as smoothly and quickly as possible. Just let us know your real estate goals and we’ll make them happen.
We’d be happy to discuss your home for sale and answer any questions you may have about buying or selling homes in Maryland. Drop us a line or fill out the contact form today – we look forward to getting to know you!