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.
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