Question
What are first time home buyers’ obligations in terms of transfer taxes in the state of Maryland?

Response
My understanding is that your .25% is waived and the sellers portion had to be paid by the seller if not stipulated otherwise in the contract.  The State is giving you a waiver of taxes therefore the seller is unable to put their side of the obligation on you, a first time MD homebuyer as traditionally transfers are split 50/50…the section of the code you have below suggest you will have to pay the sellers portion of the transfer though.  Your contract with the builder probably states that it is the buyers’ obligation to pay all transfer taxes.  The code below says the seller pays their portion “unless there is an express agreement between the parties to the agreement that the recordation tax and local transfer tax will not be paid entirely by the seller.” 

I’m not an attorney or title agent but it would seem to me that if this clause is present in your contract, and I’m pretty sure it is, you will still have to pay the .25% normally allocated to the seller.  I know a Loan Officer that used to work for — Mortgage which is owned by — Homes.  He says that in the contracts, the .25% is paid by the buyer out of the closing allowance given by the seller.  Hope this helps you!