Marcus, a licensed Maryland salesperson, is helping his client finalize a residential contract of sale. He knows that Maryland law imposes specific requirements on contracts for the sale of residential property. Which of the following is NOT a required element for a valid and enforceable residential contract of sale under Maryland law?
Correct Answer
D) The contract must include a pre-printed arbitration clause approved by MREC
Maryland law does not require a residential contract of sale to contain a pre-printed MREC-approved arbitration clause. Arbitration clauses are optional provisions that parties may agree to include, but they are not a mandatory element of a valid contract under the Maryland Real Estate Brokers Act or general Maryland contract law. The inclusion of an arbitration clause is a matter of negotiation between the parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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