Seller disclosure  Maryland recently revised the legal requirements when property is sold.

Maryland

For many years, sellers of single family residential property could either fully disclose known conditions and defects in their house, or they could opt to disclaim disclosure. In other words, sellers could advise their prospective buyers, in writing, that the "owner of the real property ... makes no representations or warranties as to the condition of the real property ... and the purchaser will be receiving the property 'as is,' with all defects which may exist."

The Maryland Legislature has changed the law. Effective Saturday, October 1, 2005, even if a seller decides to disclaim disclosure, any latent defects of which the seller has actual knowledge must nevertheless be disclosed.

A "latent defect" is defined as a material defect in real property or an improvement to real property that: "(1) a purchaser would not reasonably be expected to ascertain or observe by a careful visual inspection of the real property, and (2) would pose a direct threat to the health or safety of ... the purchaser or ... an occupant of the real property, including a tenant or invitee of the purchaser."

Real estate contracts must include a "conspicuous notice advising the purchaser of his rights to receive the disclosure/disclaimer statement."

It is to be pointed out, however, that if there is a real estate broker or agent involved in the transaction, and if he has personal knowledge of any latent defects, he is legally obligated to disclose those defects to the potential purchaser, regardless of whether the seller discloses or disclaims.

There are several exemptions to this disclosure requirement. For example, sellers of new homes that have never been occupied -- or for which a certificate of occupancy has been issued within one year before a sales contract is entered into -- are not required to provide any disclosures.

Additionally, if a fiduciary involved in the administration of a decedent's estate, guardianship, conservatorship or trust conveys property, no disclosures are required.