What Do I Have to Disclose When Selling a House in Maryland?

In Maryland, most sellers of single-family homes must give the buyer one of two forms: a Residential Property Condition Disclosure Statement or a Residential Property Disclaimer Statement. Either way, you have to disclose any "latent defects" you actually know about. The form goes to the buyer on or before the contract is signed.

I'm a REALTOR, not an attorney, so treat this as a plain-English overview and check with a real estate attorney for your situation.

Disclosure vs. disclaimer: what's the difference?

Under Maryland Real Property Section 10-702, the seller picks one:

• Disclosure statement: you fill out the state form describing the condition of the property, based on what you actually know. It covers areas like water and sewer, structure (roof, walls, foundation, basement), plumbing, electrical, heating and cooling, wood-destroying insects, and hazardous materials like lead paint, radon, or asbestos.
• Disclaimer statement: you make no promises about the condition of the home and sell it "as is." But you still must disclose latent defects you know about.

Choosing the disclaimer doesn't let you stay quiet about a serious known problem.

What is a latent defect?

The statute defines it as a material defect that a buyer wouldn't reasonably find by careful visual inspection and that poses a direct threat to the health or safety of the buyer or occupants. If you know about it, you disclose it.

The law also says you don't have to hire someone to investigate the house to fill out the form. You disclose what you actually know.

Timing matters

You must deliver the form to the buyer on or before the contract is signed, and the buyer signs an acknowledgment of receipt. If the buyer doesn't get it on time, they may have the right to cancel within a set window and get their deposit back, and that right can't be waived in the contract. Check the statute with your attorney for the exact rules. [VERIFY with attorney.]

Practical tips

1. Be honest and specific. If you had a leak, say where and when and how it was fixed. Keep receipts.
2. Don't guess. "Unknown" is acceptable when you really don't know.
3. Keep records. Repair invoices, permits, warranties.
4. Update if something changes before closing. Talk to your agent and attorney.
5. Don't hide it. Buyers usually hire an inspector anyway. A surprise found later usually feels worse than a problem disclosed up front.

Not sure how to present a known issue? We can plan it before the home hits the market. Start with my seller page or request a pricing analysis. Or you can contact me or book a short call: calendly.com/michaelwaderealtor/15min.

FAQ

Do I have to disclose if the house is sold as-is?

Yes, you still disclose known latent defects, and still deliver the form.

Do I have to fix what I disclose?

No, not by law. But it may affect buyer negotiations.

Does the buyer still get an inspection?

Typically yes. The disclosure form says it is not a substitute for an independent inspection.

Are there exemptions?

Some transfers are exempt, such as certain new construction and transfers exempt from transfer tax. Ask your attorney whether yours qualifies.

What if I inherited the house and never lived there?

You can disclose only what you actually know, but talk to an attorney.

Sources

• Maryland Real Property Section 10-702: https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=grp&section=10-702