Are Verbal Contractor Agreements Enforceable in Maryland?

 Posted on September 08, 2025 in Construction Law

In Maryland, a contract does not have to be written down to carry legal weight. When a construction project is about to start, many property owners and contractors make handshake deals or simple verbal promises. These informal agreements may feel easier than drafting lengthy contracts, but if questions later arise about payment, scope of work, or deadlines, it can cause problems. If you are relying on an verbal contractor agreement in Maryland, speak with an experienced Redland, MD construction law attorney to understand how to protect yourself.

When the Statute of Frauds Requires a Written Contract

Like many states, Maryland follows the Statute of Frauds, which requires certain contracts to be in writing for them to be enforceable. Under § 5-901, contracts for the sale of land, agreements that cannot be performed within one year, and certain financial agreements must be put down in writing.

For contractors, certain projects must have a written contract. This includes agreements that involve selling or transferring real estate. It also applies to contracts that cannot be finished in less than a year. Without one, the court may refuse to enforce the agreement.

In addition, the Maryland Home Improvement Law, Md. Code, Business Regulation § 8-501, requires that all home improvement contracts for work worth over $500 must be in writing and signed by both the homeowner and the licensed contractor. This statute is designed to protect consumers from fraud and to ensure that contractors are properly licensed.

Common Issues With Verbal Contractor Agreements

While verbal agreements can be legally enforceable in Maryland, they often create uncertainty. Some of the most common issues include:

• Disputes over the scope of work: One party may believe certain tasks were included, while the other insists they were extra.

• Payment disagreements: Confusion can arise about the total price, payment schedule, or charges for additional work.

• Project delays: Without a timeline in writing, it is harder to hold a contractor accountable for late completion.

• Change orders not documented: Verbal approval of extra work may later be denied, leaving contractors unpaid or homeowners overcharged.

• Quality of workmanship: Differing expectations about standards of work are difficult to resolve without written specifications.

Protecting Yourself in Construction Agreements

The best way to avoid disputes is to put everything in writing. A written contract provides clarity about scope, cost, timelines, and changes that need to be made. It also makes enforcement easier if a disagreement arises. Contractors should ensure they are properly licensed to protect their rights, and homeowners should confirm this before signing.

If you have already entered into an verbal agreement and a dispute arises, gather as much evidence as possible. This can include receipts, text messages, emails, or witnesses who heard the agreement. These can help support your claim in court. Then, you need a legal representative with experience in construction law to help you protect your investment and avoid costly legal battles.

Contact a Rockville, MD Construction Law Attorney Today

Verbal contractor agreements can be valid in Maryland, but they often create confusion and disputes. If you are facing a disagreement over a verbal promise or need help drafting a contract, the knowledgeable Redland, MD construction lawyers at Salvado Law Offices are here to help. Our team is committed to handling your case with diligence and personal attention, making sure you receive the strong representation you deserve.

Call us at 301-933-1814 today to schedule a consultation and learn more. Se habla Español.