Sellers & Buyers ~ Understanding the Disclosure and Disclaimer Statement

Sellers & Buyers ~ Understanding the Disclosure and Disclaimer Statement in Maryland

One part of the process of selling property in Maryland is the disclosure/disclaimer statement. The State of Maryland requires the owner of residential real property (real estate) to make eitherDisclosure or Disclaimer statement in writing regarding the condition of the property. Disclose simply meaning to tell all the owner knows or disclaim saying nothing at all.

In either case latent defectsmust be disclosed. A latent defects are defined as material defects in real property or improvement to real property that cannot be seen by careful visual inspection or would pose a threat to the health or safety of the buyer, occupants, tenant or guest of the buyer. For example: in an older home, a hole in the original ceiling, caused by a small hole in the roof, covered by a drop ceiling.

There are exceptions to the disclosure/disclaimer statement law a few examples are; new builds, foreclosure or bank owned property.

The choice, to disclose or disclaim  is up to the property owner/seller. Property owners/sellers should seek competent legal advice (from a real estate attorney) if they do not understand or want additional guidance making this choice. Neither choice is right or wrong. It is simply a choice.

To disclose is often seen as a positive and to disclaim as a negative because it is assumed that to disclaim is an indication of hiding something. My professional opinion, that’s just not true. People make choices based on their experience and recommendations by professionals.

To a buyer these documents can tell the homes story regarding structural and mechanical systems from the sellers perspective.  The best way for a buyer to understand a homes condition and systems is to have ans attend the home inspection. A good home inspector can tell you many things about a homes condition and systems. In fact, part of the home inspection is a hands on systems review with the new potential homeowner.


This post is for informational purposes only, I am not a lawyer and cannot offer legal advice. Source: Maryland Property Disclosure and Disclaimer Statement.

Sellers & Buyers ~ Understanding the Disclosure and Disclaimer Statement in Maryland