State guide

Buying or Selling a Home in Maryland: What You Need to Know

Maryland is an attorney-state, which means a licensed Maryland attorney handles the closing (called settlement) on every home sale.

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TL;DR

Maryland is an attorney-state, which means a licensed Maryland attorney handles the closing (called settlement) on every home sale. The state has some of the strictest disclosure rules in the country — especially around lead paint, septic systems, and what agents must tell you about who they represent. Buyers and sellers also face at least two layers of closing taxes, and Maryland adds fair housing protections that go beyond federal law.

10 things every Maryland buyer or seller should know

  • Maryland is an attorney-state for real estate closings. A licensed Maryland attorney conducts or supervises the closing — called settlement — and makes sure documents are signed correctly and that title passes cleanly.

  • Maryland sellers pick one of two sides on the same state-required form: the Residential Property Disclosure (answer questions about known defects in the foundation, roof, plumbing, septic, and more) or the Disclaimer (sell as-is without making representations about condition). Even sellers who pick Disclaimer must still disclose latent defects they actually know about.

  • First-time Maryland homebuyers who will live in the property as their principal residence get the state transfer tax cut in half — from 0.5% to 0.25% — and the seller must pay the entire reduced amount, regardless of what the purchase contract says.

  • Maryland closings carry at least two layers of tax: a state transfer tax of 0.5% (paid on the purchase price) and a county recordation tax that varies by county. Some counties add a local transfer tax on top, and Baltimore City adds a yield tax surcharge on sales over $1 million.

  • After the NAR settlement took effect on August 17, 2024, MLS systems serving Maryland (like BRIGHT MLS) removed the field that used to show buyer-agent compensation. Buyer brokers now ask the listing broker directly or check the listing broker's own website to learn what compensation is being offered.

  • Maryland fair housing law protects buyers and renters from discrimination based on source of income (including Section 8 housing vouchers, Social Security, disability, and veterans benefits), marital status, sexual orientation, gender identity, and military status. These protections go beyond federal Fair Housing law, which does not list source of income as a protected class.

  • Maryland's Lead Risk Reduction in Housing Act is stricter than federal lead paint rules. Owners of pre-1978 rental homes must register the property with the Maryland Department of the Environment, complete required risk-reduction work, and meet inspection standards before re-renting between tenants.

  • Maryland has required written buyer-broker agreements since 2016, well before the NAR settlement made written buyer agreements a national rule in August 2024. The agreement spells out what services the agent will provide and how they get paid.

  • Earnest money in a Maryland home purchase goes into the broker's escrow (trust) account, not the agent's personal account. The principal broker is the only person with authority over the trust account, and trust-account violations are one of the fastest paths to license suspension in the state.

  • Homes served by a private well or septic system come with extra disclosure obligations in Maryland. Sellers must disclose the water supply and sewage type and the approved bedroom count for any septic system, and buyers can ask the seller to certify water quality as a condition of sale.

The guides

Common questions

Who handles the closing when I buy or sell a home in Maryland?
Maryland is an attorney-state, so a licensed Maryland attorney conducts or supervises every real estate closing, which is called settlement here. The settlement attorney represents the title company or lender but also makes sure all documents are signed correctly and that title passes without defect. Your real estate agent cannot legally require you to use a specific lender or settlement company.
Are there any tax breaks for first-time homebuyers in Maryland?
Yes. If you are a first-time Maryland homebuyer who will live in the property as your principal residence, the state transfer tax drops from 0.5% to 0.25%, and the seller must pay the entire reduced amount. The settlement attorney applies this automatically once you sign the first-time buyer affidavit at closing.
What is the Residential Property Disclosure form, and do I have to fill it out as a seller?
Maryland gives sellers a choice on a single state form: complete the Disclosure side (answer questions about known defects in the foundation, roof, plumbing, septic, electrical, and other systems) or complete the Disclaimer side (sell as-is without making representations about condition). Even if you choose Disclaimer, you still have to disclose any latent defects you actually know about. New construction and a few other transaction types are exempt.
Why can't I see the buyer-agent commission on Maryland listings anymore?
After the NAR settlement took effect on August 17, 2024, MLS systems serving Maryland (including BRIGHT MLS) removed the field that used to show what listing brokers were offering buyer agents. Buyer brokers now ask the listing broker directly or check the listing broker's own website to find out what compensation is available.
Do I need a written agreement with my agent in Maryland?
Yes. Maryland has required written buyer-broker agreements since 2016, and the NAR settlement now requires them nationally as well. Your agreement explains what services the agent will provide and how they get paid before they start showing you homes.
Can a Maryland seller or landlord refuse my offer because I use a Section 8 voucher?
No. Maryland fair housing law explicitly protects buyers and renters from discrimination based on source of income, including housing choice vouchers (Section 8), Social Security, disability benefits, and veterans benefits. That is stronger than federal Fair Housing law, which does not list source of income as a protected class.
I'm selling a Maryland home built before 1978 — what do I owe the buyer?
Sellers of pre-1978 homes must follow federal lead paint rules: give the EPA pamphlet 'Protect Your Family from Lead in Your Home,' disclose known lead hazards, and provide a 10-day inspection period. On top of that, Maryland's Lead Risk Reduction in Housing Act adds registration and inspection requirements for pre-1978 rental properties that go further than federal rules.
Are closing costs really higher in Maryland?
They can be. Every Maryland sale has at least two tax layers — the state transfer tax (0.5%, or 0.25% paid by the seller for a first-time buyer) and the county recordation tax that varies by county. Some counties (Montgomery County especially) add a local transfer tax and a tiered recordation rate that escalates above $500,000, and Baltimore City adds a yield tax surcharge on transactions over $1 million.
Where does my earnest money go, and who controls it?
Your earnest money deposit goes into the broker's escrow account (also called a trust account), not the agent's personal account. The principal broker is the only person with authority to move that money. The funds stay there until the deal closes (when they apply to your purchase) or the contract terminates and the money is released according to its terms.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.