Seller Beth is selling her home in Maryland and elects to provide a Disclaimer Statement. Buyer Dan receives the Disclaimer Statement on Monday and signs the acknowledgment. On Friday — four days later — Dan discovers through his own research that the property has a known underground oil tank that Beth was aware of and did not mention. Dan's agent tells him he can still rescind because this is a latent defect. Which of the following most accurately reflects Dan's legal position?
Correct Answer
B) Dan's statutory three-day rescission right has expired, but he may have a separate legal claim against Beth for fraudulent concealment of a known material defect
Dan's statutory three-day rescission right under the Maryland Residential Property Disclosure and Disclaimer Act expired on Thursday (three days after Monday). By Friday, that right is gone. However, the Disclaimer Statement does not immunize Beth from liability for fraudulent concealment of a known material defect. If Beth was aware of the underground oil tank and concealed it, Dan may have an independent legal claim for fraud or misrepresentation separate from the statutory rescission right. These are two distinct legal remedies under Maryland law.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Mandated Disclosures Question
Background Knowledge for Mandated Disclosures
Real World Application in Mandated Disclosures
Common Mistakes to Avoid on Mandated Disclosures Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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.
More Mandated Disclosures Questions
In Vermont, a client refuses to allow a disclosure the licensee believes is necessary. Which statement is correct?
In Vermont, unpermitted construction or septic work affects a Vermont property. Which statement is correct?
A Vermont licensee is asked about a seller's agent knows a serious property defect or limitation. What is the best answer?
In Vermont, a licensee markets a pre-1978 Vermont residential rental property. Which statement is correct?
In Vermont, a seller's agent knows a serious property defect or limitation. Which statement is correct?
- → In Vermont, covered pre-1978 property is shown to a buyer. Which statement is correct?
- → In Vermont, the property is subject to a right of first refusal. Which statement is correct?
- → A Vermont licensee is asked about unpermitted construction or septic work affects a Vermont property. What is the best answer?
- → An Oklahoma licensee is asked about a seller learns of a new defect after already delivering a disclosure or disclaimer statement. What is the best answer?
- → Which Oklahoma rule applies when a seller wants to use the Oklahoma disclaimer statement instead of a disclosure statement?
- → An Oklahoma licensee is asked about a seller of covered Oklahoma residential property is preparing for a buyer’s offer. What is the best answer?
- → In Oklahoma real estate practice, a seller has not yet accepted a purchaser’s offer. What should the licensee remember?
- → For the Oklahoma salesperson state portion, a disclosure statement is delivered after an offer to purchase has been made. Which statement is correct?
- → Which Oklahoma rule applies when a real estate licensee actually knows of a property defect that is not included in the seller’s disclosure statement?
- → In Oklahoma real estate practice, a newly constructed dwelling has never been occupied. What should the licensee remember?