Maryland · owner financing
Maryland owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Maryland — statute, recording, default remedies, interest caps, and where deals actually happen.
Md. Code, Real Property § 10-101 et seq. (Maryland Land Installment Contract Act, § 10-101 to § 10-110)
Md. Code, Real Property § 10-102 requires the land installment contract (or memorandum) to be recorded with the clerk of the circuit court in the county where the property lies within 15 days of execution. Failure to record is a violation by the seller.
Statutory framework. Buyer is entitled to a 60-day right to cure after written notice of default (§ 10-105). Forfeiture without judicial process is restricted; seller generally must afford cure period and follow statutory procedure or pursue judicial remedies.
Is owner financing legal in Maryland?
Expressly codified. The Maryland Land Installment Contract Act (Real Property § 10-101 et seq.) defines and regulates 'land installment contracts' for residential property of seven or fewer dwelling units occupied or to be occupied by purchaser.
How do you record a owner financing agreement in Maryland?
Md. Code, Real Property § 10-102 requires the land installment contract (or memorandum) to be recorded with the clerk of the circuit court in the county where the property lies within 15 days of execution. Failure to record is a violation by the seller.
What happens if the buyer defaults?
Statutory framework. Buyer is entitled to a 60-day right to cure after written notice of default (§ 10-105). Forfeiture without judicial process is restricted; seller generally must afford cure period and follow statutory procedure or pursue judicial remedies.
What is the maximum interest rate?
Generally 6% legal rate; up to 24% for most loans by written contract (Md. Comm. Law § 12-103). Subject to specific consumer-credit caps for residential mortgage loans.
What disclosures are required?
Md. Code, Real Property § 10-102: contract must include legal description, full purchase price, payment schedule, interest rate, encumbrances, and a long list of statutory disclosures. Maryland Residential Property Disclosure (Real Property § 10-702) also applies.
Who's protected — buyer vs. seller
Buyer protections
Robust: mandatory recording within 15 days; 60-day statutory cure period; comprehensive disclosure-of-terms requirement in contract; protection against forfeiture without statutory notice; annual statement of account required.
Seller protections
Statutory enforcement framework when followed correctly; cure-period structure provides defined timeline before remedies; ability to pursue judicial action.
Where in the state do these deals happen?
Historically used in Baltimore and rural Eastern Shore for low-income homebuying; the statute was passed in part to curb abusive contract-for-deed practices; less common today due to regulatory oversight.
Maryland cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Research needed for current Maryland Court of Appeals/Supreme Court precedent under the Land Installment Contract Act.
Looking at a Maryland deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Maryland contracts and remedies are fact-specific — consult a licensed Maryland real-estate attorney before signing anything.