Buying a Home in Maryland: From Contract to Closing

The period between signing a purchase contract and closing day is where most surprises happen. Understanding the inspection window, financing contingency, and title review can keep a Maryland home purchase on track and protect your deposit if something goes wrong.

You found the house, your offer was accepted, and you signed a purchase contract. In Maryland, that contract starts a clock. The weeks between ratification and closing are when inspections happen, financing is finalized, and title is examined — and they are also when most deals run into trouble. Knowing what each stage involves helps you stay in control and protect your deposit.

The Ratified Contract

A real estate contract becomes "ratified" once both buyer and seller have agreed to and signed the same terms. From that point, the deadlines written into the contract govern everything that follows. Read those dates carefully: a contingency that expires is generally gone, and missing a deadline can put your earnest money deposit at risk or weaken your bargaining position.

The Inspection Period

Most Maryland contracts give the buyer a defined window to have the property professionally inspected. A home inspection looks at structure, roof, electrical, plumbing, HVAC, and other major systems. Depending on the property, you may also want specialized inspections — for example, a radon test, a well or septic evaluation, or a wood-destroying insect inspection.

When the inspection turns up problems, you typically have a few options: ask the seller to make repairs, request a credit or price reduction, or — if the contract allows and the issues are serious enough — walk away. The right move depends on the contract language and the severity of what was found.

What to watch for

• Inspection deadlines. The window is often shorter than buyers expect. Schedule your inspection immediately after ratification.
• How the contingency is written. Some give you broad rights to negotiate or terminate; others are narrower.
• Documentation. Keep the written report and all repair agreements in writing.

The Financing Contingency

Unless you are paying cash, your contract almost certainly includes a financing contingency. This protects you if your mortgage falls through, but only if you meet its requirements: applying for the loan promptly, cooperating with the lender, and getting your loan approved within the contract's timeframe. Let that deadline pass without an approval or an agreed extension, and you may lose the protection — and potentially your deposit — if financing later collapses.

The lender will also order an appraisal. If the home appraises below the purchase price, that can affect your loan and may open a separate negotiation with the seller.

Title Review

Before closing, a title search is performed to confirm the seller can actually convey clear ownership. The search looks for liens, judgments, unpaid taxes, easements, boundary issues, or other claims that could cloud title. Most buyers also purchase title insurance to protect against defects that surface later.

If the search reveals a problem, it generally needs to be resolved before closing — for instance, a prior mortgage that was paid but never formally released, or an old lien that must be cleared. An attorney can help interpret what a title issue means for your purchase and how to address it.

Closing Day

At closing (settlement), you sign the final loan and transfer documents, pay your closing costs and down payment, and the deed is recorded in the county land records. Once everything is signed and funds are disbursed, ownership transfers and you receive the keys.

It is worth reviewing the closing disclosure in advance so the final numbers are not a surprise, and confirming who is responsible for which costs under your contract.

Where an Attorney Helps

Maryland does not require buyers to use an attorney, but real estate transactions involve binding deadlines and significant money. An attorney can review the contract before or after you sign, explain your contingencies, help you respond to inspection or title issues, and make sure your interests are protected through closing — particularly in transactions involving HOAs, unusual financing, or title complications.