Contracts (alternative)
A Maryland addendum to a purchase contract is valid when it:
AIs written on any paper and initialed by one party
BIs signed or initialed by all parties and references the original contract✓ Correct
CIs submitted to MREC for approval
DIs notarized by a Maryland notary
Explanation
For an addendum to be valid and enforceable in Maryland, it must reference the original contract, be agreed to (signed or initialed) by all parties to the transaction, and be incorporated into the contract.
People Also Study
Related Maryland Questions
- A Maryland purchase contract provides for 'liquidated damages' of the earnest money if the buyer defaults. This means the parties have agreed that:Contracts
- In Maryland, what is the purpose of an addendum to a purchase contract?Contracts
- In Maryland, an addendum to a purchase contract is typically used to:Contracts
- Under Maryland contract law, which of the following is a required element of a valid real estate contract?Contracts
- A Maryland investor sells a property for $575,000 after owning it for 5 years and receiving a total of $150,000 in rental income. The original purchase price was $400,000. Total gross profit is:Real Estate Math
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →