Explanation of Changes - Feb. 2008

Summary of Changes

Form 1312 — Montgomery County Jurisdictional Addendum to the Sales Contract
February, 2008

Transfer and Recordation Taxes - (paragraph 2):
Paragraph 2 has been expanded to include Transfer & Recordation taxes for First Time Maryland Home Buyers. This eliminates the need to ever use the separate First Time Maryland Home Buyer Transfer and Recordation Tax Addendum (GCAAR Form #1335). Essentially a frequently used page of the contract has been eliminated without extending the length of the Jurisdictional Addendum.

This action was precipitated by MAR making a similar revision of the MAR Contract in October 2007. However, MAR's action did not entirely eliminate the need for the Addendum, where as the GCAAR version totally eliminates the need to ever attach the addendum whenever using the Montgomery County Jurisdictional Addendum. Furthermore, this GCAAR version retains the helpful explanation of who qualifies for the exemption, assisting agents when choosing between the two options.

Financing and Financing Application - (paragraph 11):
Paragraph 11 of the Jurisdictional Addendum replaces the financing contingency in the MAR contract with the financing contingency used in the Capitol region. However the current version of the Jurisdictional Addendum inadvertently eliminates too much from the MAR Contract. The new language in revised Jurisdictional Addendum only eliminates Paragraph 10 ("Financing Application and Commitment") and not paragraph 9 ("Financing") of the MAR Contract. Paragraph 9 included very important information describing the loan terms. However, paragraph 9 of the MAR contract does make reference to Buyer obtaining a written commitment. Therefore in cases in which Option 2 (no financing contingency) is chosen in the Jurisdictional Addendum, paragraph 11 (D) Option (2) includes language that also deletes paragraph 9 of the MAR Contract.

Maryland Non-Resident Seller - (paragraph 14):
This paragraph was eliminated from the REA since it is not really a Seller disclosure to the Buyer. It is intended to be a notification/reminder to the seller of Maryland's regulations and is included in the MAR Contract for informational purposes only. The notification is now included in the Jurisdictional Addendum under the section when the Regional Contract is in use. A similar notice is included in the MAR contract.

Other small changes were made to formatting and pagination to confine the form to its current length.