Under the Maryland Residential Property Disclosure and Disclaimer Act, a seller of a residential property elects to provide a disclaimer statement. Three days after receiving the disclaimer, the buyer, Nora, signs the purchase contract without exercising her right of rescission. At settlement, Nora discovers a roof defect that the seller did not mention. Nora argues the disclaimer was invalid because the seller failed to disclose a known defect. Which of the following most accurately describes the legal effect of the disclaimer under Maryland law?
Correct Answer
B) The disclaimer protects the seller from claims arising under the Disclosure Act, but does not bar Nora's independent tort claims if the seller knowingly concealed a material defect
Under the Maryland Residential Property Disclosure and Disclaimer Act (Md. Code Ann., Real Prop. §§ 10-702 et seq.), a seller who elects the disclaimer option sells the property as-is with respect to the Act's disclosure requirements. However, the disclaimer does not immunize the seller against independent tort claims such as fraud, fraudulent concealment, or misrepresentation under Maryland common law. If the seller knowingly concealed a material defect — such as a known roof problem — Nora retains the right to pursue those independent claims regardless of the disclaimer. The disclaimer's protection is limited to the statutory framework, not common law tort liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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