Land Sale Closings in Maryland: What Sellers and Buyers Need to Know

1. Signing the Contract

The land sale process officially begins once both parties agree to the terms outlined in a Contract of Sale. This document specifies key details such as the sale price, closing timeline, and any conditions that must be met before the deal is finalized. A well-drafted contract minimizes misunderstandings and prevents complications later in the process.

2. Conducting a Title Search and Securing Title Insurance

Before ownership can legally change hands, a title search is conducted to confirm that the land is free of outstanding liens, disputes, or restrictions. If issues arise, they must be resolved before proceeding.

Many buyers also opt for title insurance, which provides financial protection in case undiscovered claims or defects in the title surface later. While not mandatory, title insurance offers peace of mind that the property’s ownership is legally sound.

3. Property Inspections and Seller Disclosures

Buyers often request inspections to assess the land’s condition. These may include:

• Boundary Surveys – Verifying property lines.
• Environmental Assessments – Checking for potential hazards.
• Zoning and Land Use Checks – Ensuring compliance with local regulations.

In Maryland, sellers are legally required to disclose material facts about the property. Failing to provide accurate disclosures could lead to legal issues down the road.

4. Buyer’s Financing and Loan Approval

If the buyer is financing the purchase, their lender will assess the property and review the borrower’s qualifications before issuing final loan approval. This process may involve an appraisal, additional inspections, or verification of financial documents.

Buyers should communicate closely with their lender to ensure all requirements are met in time for closing.

5. Reviewing the Closing Disclosure

Before the closing date, the buyer receives a Closing Disclosure that breaks down the transaction’s financial details, including loan terms, fees, and any adjustments. Both parties should carefully review this document to confirm accuracy before proceeding to the final stage.

6. Final Settlement and Closing Meeting

The official closing, also known as settlement, is where the final paperwork is signed, payments are made, and ownership is legally transferred. The key steps include:

• Signing Closing Documents – This includes the deed transfer, loan agreements (if applicable), and tax declarations.
• Payment Processing – The buyer pays the remaining balance (or the loan is funded), while the seller receives their proceeds after deductions.
• Recording the Deed – The title company or settlement agent registers the deed with the county, making the ownership transfer official.

Once this process is complete, the buyer takes full legal ownership of the land.