Residential Real Estate Sales Disclosure Statement
Title 10. Sale of Real Property
§ 10-702 REAL PROPERTY - Disclosures required for sale
of single family residential property.
(a) Applicability of section.
(1) This section applies
only to single family residential real property improved by four or fewer
single family units.
(2) This section does not apply to:
(i) The initial sale of single family
residential real property:
1. That has never been occupied;
or
2. For which a certificate
of occupancy has been issued within 1 year before the vendor and purchaser
enter into a contract of sale;
(ii) A transfer that is exempt from the
transfer tax under §13-207 TAX-PROP. of the Tax-Property Article,
except land installment
contracts of sale under § 13-207(a)(11) of the Tax-Property Article
and options to purchase real property under § 13-207(a)(12) of the
Tax-Property Article;
(iii) A sale by a lender or an affiliate
or subsidiary of a lender that acquired the real property by foreclosure
or deed in lieu of foreclosure;
(iv) A sheriff's sale, tax sale, or sale
by foreclosure, partition, or by court appointed trustee;
(v) A transfer by a fiduciary in the
course of the administration of a decedent's estate, guardianship, conservatorship,
or trust;
(vi) A transfer of single family residential
real property to be converted by the buyer into a use other than residential
use or to be demolished; or
(vii) A sale of unimproved real property
(b) Duty of vendor; development of form. (1) A vendor
of single family residential real property shall complete and deliver to
each purchaser:
(i) A written residential property condition
disclosure statement on a form provided by the State Real Estate Commission;
or
(ii) A written residential property disclaimer
statement on a form provided by the State Real Estate Commission.
(2) The State Real Estate Commission shall develop
by regulation a single standardized form that includes the residential
property condition disclosure and disclaimer statements required by this
subsection.
(c) Contents of residential property disclaimer statement.
The residential property disclaimer statement shall state that:
(1) The vendor makes no representations or warranties
as to the condition of the real property or any improvements on the real
property; and
(2) The purchaser will be receiving the real property
"as is", with all defects that may exist, except as otherwise provided
in the contract of sale of real property.
(d) Contents of residential property disclosure statement.
(1) The residential property disclosure statement shall disclose those
items that, to carry out the provisions of this section, the State Real
Estate Commission requires to be disclosed about the physical condition
of the property.
(2) The disclosure form shall include a list of defects
or information of which the vendor has actual knowledge in relation to
the following:
(i) Water and sewer systems, including
the source of household water, water treatment systems, and sprinkler systems;
(ii) Insulation;
(iii) Structural systems, including the
roof, walls, floors, foundation, and any basement;
(iv) Plumbing, electrical, heating, and
air conditioning systems;
(v) Infestation of wood-destroying insects;
(vi) Land use matters;
(vii) Hazardous or regulated materials,
including asbestos, lead-based paint, radon, underground storage tanks,
and licensed landfills;
(viii) Any other material defects known
to the vendor; and
(ix) Whether the smoke detectors will
provide an alarm in the event of a power outage.
(3) The disclosure form shall contain:
(i) A notice to prospective purchasers
and vendors that the prospective purchaser or vendor may wish to obtain
professional advice about or an inspection of the property;
(ii) A notice to prospective purchasers
that disclosure by the seller is not a substitute for an inspection by
an independent home inspection company, and that the purchaser may wish
to obtain such an inspection;
(iii) A notice to purchasers that the
information contained in the disclosure statement is the representation
of the vendor and is not the representation of the real estate broker or
salesperson, if any; and
(iv) A notice to purchasers that the
information contained in the disclosure statement is not a warranty by
the vendor as to:
1. The condition of the property
of which the vendor has no actual knowledge; or
2. Other conditions of which
the vendor has no actual knowledge.
(4) The vendor is not required to undertake or provide
an independent investigation or inspection of the property in order to
make the disclosures required by this section.
(e) Delivery of disclosure or disclaimer statement.
(1) Except as provided in paragraphs (2) and (3) of this subsection, the
vendor
shall deliver the completed disclosure or disclaimer statement required
by this section to the purchaser on or before entering into a contract
of sale by the vendor and the purchaser.
(2) The disclosure or disclaimer statement shall
be delivered to each purchaser before the execution of the contract of
sale by the purchaser in the case of a land installment contract, as defined
in § 10-101 of this title.
(3) The disclosure or disclaimer statement shall
be delivered to each purchaser before the execution by the purchaser of
an option to purchase agreement or a lease agreement containing an option
to purchase provision.
(4) At the time the disclosure or disclaimer statement
is delivered, each purchaser shall date and sign a written acknowledgment
of receipt, which shall be included in or attached to the contract of sale.
(f) Right to rescission. Limitations. A purchaser
who receives the disclosure or disclaimer statement on or before entering
into the contract of sale does not have the right to rescind the contract
of sale based upon the information contained in the statement.