Maryland real estate: buy or sell with a local AXEN agent
Maryland lets the seller choose a disclosure or an as-is disclaimer, gives condo and HOA buyers a cooling-off window, and cuts the state transfer tax for first-time buyers. Here is what is the same everywhere in Maryland, and where to search homes.
Maryland: search homes by city
Tap a city to see the newest homes for sale there.
What every Maryland buyer and seller should know
The seller gives a disclosure or a disclaimer
Before you sign the contract, the seller of a single-family home must give you either the state disclosure statement or a disclaimer statement selling the home as is (Md. Code, Real Prop. 10-702). Even with the disclaimer, the seller must tell you about hidden, or latent, defects they actually know about.
No statement yet? You can cancel
If you did not get the disclosure or disclaimer before you signed, you can cancel in writing any time before you receive it, or within 5 days after (Real Prop. 10-702). That right can end sooner once you apply for a mortgage, if the lender told you so in writing.
The state transfer tax is 0.5%
Maryland charges a state transfer tax of 0.5% of the price (Md. Code, Tax-Prop. 13-203). Counties add their own transfer tax and a recordation tax, and those rates vary a lot from county to county. Who pays what is set in the contract, and splitting the taxes is common.
First-time buyers pay less
When a first-time Maryland buyer will live in the home as their main residence, the state transfer tax drops to 0.25%, and the law makes the seller pay all of it (Tax-Prop. 13-203). A first-time Maryland buyer is someone who has never owned a main home in Maryland. Many counties give first-time buyers a break on their taxes too.
Condo buyers get 7 days
When you buy a condo resale, you get the condo's documents and you can cancel in writing within 7 days after receiving all of them, for any reason, and get your deposit back (Real Prop. 11-135).
HOA buyers get 5 days
In a homeowners association, if you did not get all the required HOA information at least 5 days before signing, you can cancel in writing within 5 calendar days after you receive it (Real Prop. 11B-106). You do not need a reason.
The homestead credit caps tax increases
Maryland's Homestead Tax Credit limits how much the taxable assessment on your main home can rise each year, to 10% or less, depending on your county. You have to apply once with the State Department of Assessments and Taxation. It does not happen automatically.
Some older homes sit on ground rent
Maryland still has ground leases, mostly on older homes in and around Baltimore. With one, you own the house but pay a yearly rent to someone who owns the land underneath. The title search will show it. Ask about it before you sign, and learn how to buy it out.
Closing costs in Maryland: who pays what
Who pays what in Maryland. The state transfer tax is set by law. County transfer and recordation taxes vary. Who pays is set in the contract.
| Buyer pays | How it works |
|---|---|
| Share of transfer and recordation taxes | Set in the contract. Splitting them is common. |
| Lender's title policy | Only if you have a loan. Based on the loan amount. |
| Owner's title policy | Optional, but strongly worth it. |
| Settlement fee | A fee from the title or settlement company. |
| Recording fees | County land records fees. |
| Home inspection | A flat fee. Not required, but worth it. |
| Condo or HOA fees | Whatever the association charges. |
| Tax proration | Your share of the year's property taxes. |
| Seller pays | How it works |
|---|---|
| Share of transfer and recordation taxes | Set in the contract. All of the state tax if the buyer is a first-time Maryland buyer. |
| Deed preparation | A flat fee from the title company or a lawyer. |
| Condo or HOA resale documents | Whatever the association charges to prepare them. |
| Mortgage payoff and release | Your lender's payoff plus the fee to record the release. |
| Ground rent | Paid through closing if the home has one. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Tax proration | Your share of taxes for the time you owned the home. |
| Repairs you agree to | Only what you agree to in writing. |
Fees change. The state transfer tax is set in Tax-Prop. 13-203. County transfer and recordation tax rates vary widely and change often. Confirm current numbers with your settlement company.
How a Maryland home purchase runs
The order most Maryland purchases follow. Your contract sets the exact deadlines, so keep a calendar.
Get pre-approved →-
Get pre-approved. Know your budget and payment before you tour.
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Read the disclosure or disclaimer. You should get it before you sign.
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Sign the contract. Your deposit is held in escrow.
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Condo or HOA? Read the documents. Your cancel window starts when you have them all.
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Inspect. Add well and septic checks if they apply.
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Appraisal and loan approval. The lender orders the appraisal and finishes underwriting.
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Title search. Watch for ground rent and any liens.
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Final walk-through. Check the home is in the condition you agreed to.
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Settle, then apply for the credit. Sign at settlement, then file your Homestead Tax Credit application.
Maryland by region
Maryland markets run from the DC suburbs to the Chesapeake Bay and the mountains. Tap a city to see the newest homes for sale there.
DC suburbs
Montgomery and Prince George's counties next to Washington.
Annapolis and Southern Maryland
The state capital on the bay and the towns south of it.
Western Maryland and the Eastern Shore
Frederick and Hagerstown in the west, and the shore towns in the east.
AXEN Realty in Maryland
Every AXEN agent in Maryland works under a licensed managing broker: Rusty Smith (AXEN Realty, LLC, firm license 5022869). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
Maryland real estate questions
Does the seller have to give me a disclosure in Maryland?
The seller must give you either the state disclosure statement or an as-is disclaimer before you sign. With the disclaimer, they still must tell you about hidden defects they know about.
What if I did not get the disclosure before signing?
You can cancel in writing any time before you receive it, or within 5 days after. The right can end sooner once you apply for a mortgage, if your lender told you so in writing.
How much is the transfer tax in Maryland?
The state part is 0.5% of the price. Your county adds its own transfer tax and a recordation tax, and those vary widely. Ask for the county rates before you write the offer.
Do first-time buyers get a break?
Yes. If you have never owned a main home in Maryland and will live in this one, the state transfer tax drops to 0.25% and the seller pays it. Many counties also cut their taxes for first-time buyers.
How long do I have to cancel a condo or HOA purchase?
Condo: 7 days after you receive all the required documents. HOA: 5 calendar days after you receive all the HOA information, if you did not get it at least 5 days before signing.
Do I need a lawyer to buy or sell a home in Maryland?
State law does not require one. Title and settlement companies handle most closings. You can hire a lawyer any time, especially for ground rent, estates or unusual titles.
What is the Homestead Tax Credit?
It limits how much your main home's taxable assessment can go up each year, to 10% or less depending on the county. You apply once with the State Department of Assessments and Taxation.
Is a home inspection required in Maryland?
No state law requires one. Most buyers make the sale depend on an inspection, and you should. Well and septic checks matter on homes outside public water and sewer.