Seller Greg provides buyer Amy with a Maryland Residential Property Disclaimer Statement at the time the contract is signed. Three days later, Amy's home inspector discovers significant structural damage to the foundation that Greg was aware of but did not disclose. Amy wants to take legal action. Which statement best describes Amy's legal position under Maryland law?
Correct Answer
A) Amy may have a claim against Greg for fraudulent concealment of a known material defect, despite the Disclaimer Statement
Under Maryland law, while a Disclaimer Statement allows a seller to sell a property as-is without making representations about its condition, it does not protect a seller from liability for fraudulent concealment of known material defects. If Greg was aware of the significant structural damage and actively concealed it, Amy may have a legal claim for fraud or misrepresentation despite the Disclaimer Statement. Maryland courts have consistently held that the disclaimer option does not shield sellers from fraud liability.
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Related Topics & Key Terms
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Related Concepts
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
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