Under the Maryland Residential Property Disclosure and Disclaimer Act, a seller elects to provide a disclaimer statement instead of a full disclosure. The buyer, James, receives the disclaimer and signs the purchase contract. Two months after settlement, James discovers a significant foundation problem that the seller knew about before the sale. Which of the following best describes James's legal position under Maryland law?

Correct Answer

D) James may have a claim for fraud or misrepresentation if the seller knowingly concealed a material defect despite electing the disclaimer

While Maryland's Residential Property Disclosure and Disclaimer Act permits a seller to elect a disclaimer (as-is sale) instead of a full disclosure, the disclaimer does not immunize a seller from liability for fraud or active misrepresentation. If the seller knowingly concealed a material defect — such as a known foundation problem — the buyer may still have a cause of action for fraud, fraudulent concealment, or misrepresentation under Maryland common law, independent of the Disclosure Act. The disclaimer only protects against claims based on the Act itself, not independent tort claims.