Contracts
If a contract is dependent upon the occurrence of something, such as inspection or financing, it is said to be this.
What is contingent?
A person defined as a Maryland first time homebuyer will be exempt from paying this tax at closing.
What is state transfer tax?
A type of loan that allows a buyer to purchase a home with only 3.5% down.
What is an FHA loan?
What is 3?
This type of lien can be recorded by a contractor that has not been paid in full.
What is a mechanics lien?
If a party to a contract fails to abide by the terms of the contract, they are in this.
What is default or breach of contract?
A resident of another state who sells a Maryland property may be subject to this type of tax being collected at closing.
What is withholding tax?
An additional charge that can be added to a monthly payment when a purchaser has a high loan to value ratio.
What is mortgage insurance?
The threshold loan to value ratio to avoid paying mortgage insurance on a conventional loan.
What is 20%?
Some people don't realize that this type of mortgage, which allows homeowners to draw down upon on a revolving basis, is a lien.
What is a HELOC?
This document is used to amend or correct a contract.
What is an addendum?
Farmland, or other property that similarly assessed, may be subject to this type of extra transfer tax upon the sale of such a property.
What is agricultural transfer tax?
DTI, a factor that lenders use in order to determine a borrower's ability to repay a loan, stands for this.
What is debt to income ratio?
Non Maryland residents who sell a Maryland property may be subject to a withholding tax at closing for this percentage of their proceeds.
What is 7.5%?
A lien against property that originates in a court of law.
What is a judgment lien?
Daily Double!
Some say time is like a river. In a contract, time is this, meaning that deadlines are deadlines!
What is "of the essence"?
Maryland state transfer tax is charged at this percentage of the purchase price.
What is .5%?
The three words that everyone loves to hear from their lender.
What is clear to close?
The section of the Internal Revenue Code that governs certain exchanges of non-primary residences for tax deferral purposes.
What is 1031?
If you fail to pay certain dues when your property is located in a Planned Unit Development, the governing body of the development may file this type of lien.
What is an HOA lien?
The standard Maryland sales contract calls for this process by which parties attempt to resolve a dispute or claim with the assistance of a neutral party.
What is mediation?
The Supreme Court ruled that this type of tax lien can attach to a property even if it is held as tenants by the entireties.
What is an IRS or Federal Tax Lien.
Lenders are required to provide this credit on a closing disclosure if the amount of escrows they are collecting exceeds the amount prescribed by applicable law.
What is the aggregate adjustment?
Lenders are permitted to hold this many months of a cushion when they collect escrows with a loan.
What is 2?
DAILY DOUBLE!!!
Unless specifically avoided in a case, most liens are not discharged through this process.
What is bankruptcy?