A seller of a 1955 single-family home in Maryland chooses to provide a disclaimer statement instead of a full disclosure under the Maryland Residential Property Disclosure and Disclaimer Act. The property is later discovered to have significant mold contamination in the basement that the seller was aware of before settlement. Which statement best describes the legal effect of the disclaimer in this situation?
Correct Answer
B) The disclaimer does not protect the seller from liability for known material defects that were concealed, as the disclaimer applies to unknown conditions, not deliberate non-disclosure
Under Md. Code Ann., Real Prop. §§ 10-702 et seq., a seller may choose to provide a disclaimer statement indicating the property is sold as-is rather than a full disclosure. However, a disclaimer does not protect a seller who deliberately conceals known material defects. The disclaimer applies to conditions the seller is unaware of or chooses not to investigate, but a seller who has actual knowledge of a material defect such as significant mold contamination and fails to disclose it remains exposed to liability for fraudulent concealment or misrepresentation, notwithstanding the disclaimer.
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