Key Takeaways
- Maryland Residential Property Disclosure Act requires sellers to provide a disclosure or disclaimer statement
- Sellers can choose to disclose known defects OR provide a disclaimer selling "as is"
- Even with a disclaimer, sellers cannot actively conceal known defects or commit fraud
- Licensees must disclose known material facts regardless of seller's choice
- Lead-based paint disclosure is federally required for homes built before 1978
Maryland Residential Property Disclosure Act
Maryland has specific requirements for property disclosures that sellers must follow under the Maryland Residential Property Disclosure and Disclaimer Act.
Disclosure Options in Maryland
Maryland law gives sellers of residential real property (1-4 units) a choice:
Option 1: Provide Disclosure Statement
Complete the Maryland Residential Property Disclosure Statement which covers:
| Category | Items Disclosed |
|---|---|
| Structural | Foundation, roof, walls, floors, windows |
| Systems | HVAC, plumbing, electrical, water/sewer |
| Environmental | Lead paint, underground tanks, radon |
| Property Issues | Drainage, boundaries, easements, flooding |
| HOA/Condo | Association information, fees, restrictions |
Option 2: Make Disclaimer Statement
Alternatively, sellers may provide a disclaimer statement that:
- States property is sold "as is"
- Makes no representations about condition
- Places responsibility on buyer to investigate
- Must be in writing and signed
Important Rules for Both Options
What Sellers Cannot Do
Even with a disclaimer:
- Cannot actively conceal known defects
- Cannot commit fraud or misrepresentation
- Cannot fail to disclose conditions required by law
- Must answer truthfully if directly asked
Timing of Disclosure
| When | Requirement |
|---|---|
| Before contract | Preferred timing |
| With contract | Common practice |
| After changes | Update if material changes occur |
Licensee Disclosure Obligations
Maryland licensees have separate disclosure duties regardless of seller's choice:
Required Disclosures by Licensees
Licensees must disclose to all parties:
| Must Disclose | Description |
|---|---|
| Material adverse facts | Known physical defects affecting value |
| Latent defects | Hidden problems not apparent to buyer |
| Environmental hazards | Known contamination or hazards |
| Legal issues | Known zoning violations, liens |
Ground Rent Disclosure (Unique to Maryland)
Ground rent is a unique Maryland concept where:
- Land is leased rather than owned
- Property owner pays annual ground rent to land owner
- Buyer should be informed of ground rent obligations
- Ground rent can be redeemed (purchased) in most cases
Important: Ground rent is almost exclusively a Maryland concept. Licensees must disclose if a property is subject to ground rent.
Federal Disclosure Requirements
Regardless of Maryland law, federal requirements apply:
Lead-Based Paint Disclosure (Pre-1978 Homes)
For any home built before 1978:
- Seller must provide EPA pamphlet "Protect Your Family From Lead in Your Home"
- Seller must disclose known lead-based paint hazards
- Buyer has 10 days to conduct lead inspection (can be waived)
- Specific disclosure forms must be signed
Other Federal Requirements
| Disclosure | When Required |
|---|---|
| Flood zone | May be required by lender |
| Radon | Not federally mandated but recommended |
Buyer's Rights and Responsibilities
Buyer's Due Diligence
Buyers should:
- Review all disclosure statements carefully
- Hire professional inspectors
- Ask specific questions about concerns
- Not rely solely on seller representations
Inspection Rights
Maryland buyers typically have the right to:
- Conduct home inspections
- Order specialized inspections (radon, mold, termites)
- Review HOA/condo documents
- Investigate ground rent status
What options does Maryland law give sellers regarding property disclosure?
What is ground rent, which is unique to Maryland?
If a Maryland seller chooses the disclaimer option, what are they still prohibited from doing?