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A buyer named Rachel is considering purchasing a waterfront home on the Eastern Shore of Maryland. Her agent, Tom, knows the property is located within 1,000 feet of a Chesapeake Bay tributary. What is Tom's primary obligation regarding the Critical Area status of this property?

Correct Answer

B) Tom must disclose the Critical Area status to Rachel because it materially affects the use and value of the property.

Maryland real estate licensees have a duty to disclose material facts that affect the use and value of a property. A property's location within the Chesapeake Bay Critical Area is a material fact because it subjects the property to significant land use restrictions, including limits on development, impervious surfaces, and vegetation removal. Failure to disclose this status could expose Tom to disciplinary action under the Maryland Real Estate Brokers Act.

Answer Options
A
Tom must obtain a Critical Area variance on behalf of Rachel before the contract is signed.
B
Tom must disclose the Critical Area status to Rachel because it materially affects the use and value of the property.
C
Tom has no specific obligation because Critical Area status is a public record that Rachel can research herself.
D
Tom must advise Rachel to hire a licensed environmental attorney before making any offer on the property.

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Related Topics & Key Terms

Key Terms:

chesapeake_baycritical_areadisclosure_obligationmaterial_factagent_duty

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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