Agent Maria is listing a property in Kent County that is partially within the Chesapeake Bay Critical Area and partially outside it. The seller tells Maria that only the rear portion of the lot is within the Critical Area and that the front portion—where the house sits—is not. The seller says the Critical Area designation does not need to be disclosed because the house itself is not in the Critical Area. Which of the following best describes the correct approach for Maria?
Correct Answer
B) Maria should disclose that a portion of the property is within the Chesapeake Bay Critical Area, as this is a material fact regardless of whether the dwelling itself is located in the Critical Area.
The fact that any portion of a property is within the Chesapeake Bay Critical Area is a material fact that must be disclosed, regardless of whether the dwelling itself is located within the 1,000-foot boundary. Critical Area restrictions on even a portion of a lot can significantly affect the owner's ability to use, develop, or modify that portion of the property. This affects the overall value and utility of the property as a whole. Maria's disclosure duty under the Maryland Real Estate Brokers Act is triggered by the material nature of the fact, not by whether the house structure itself sits within the Critical Area. The seller's characterization does not override Maria's independent disclosure obligation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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