Buying A Home

One of the biggest expenses for families, besides college tuition, is the mortgage.  It is, therefore, important when buying or selling your existing dwelling to review the fine print in the contracts, deeds, and disclosure statements.

According to Maryland Real Property Code '10-702, the seller of a home must disclose current and past defects of the dwelling or disclaim any representations or warranties as to the condition of the land or improvements.  Local real estate agents and brokers routinely advise sellers to disclose because these homes, theoretically, sell faster.  However, a close examination of the statement by the seller and buyer is essential to avoid potential civil liability on the basis of constructive fraud.

For a host of reasons, sellers of existing homes should provide a disclaimer statement to the potential buyer.  First, preparing a disclosure statement, attesting to the condition of the water and sewer systems, insulation, structural systems, electrical and heating systems, insect infestation, land use matters, etc. is time consuming and could delay the contract signing.  Second, the statement itself is a legally binding document and should be reviewed by an attorney.  Third, a disclosure statement permits the buyers to seek compensation for maintenance and repair problems as late as three years after discovering the problem or condition.  And, fourth, the disclaimer statement should avoid the expense and inconvenience of defending a civil suit.  In the suit, the buyer may claim reimbursement for material and installation replacement costs, attorney=s fees, expert witness fees and court costs.

Additional information on this subject can be found in the Maryland Real Property Code '10-702 and the treatise Residential Real Estate Transactions, Third Edition.  Alternately, you may call me with questions on this or any other legal matter at (301) 290-1400 or e-mail me at strissel@aol.com.

This column is general in nature. It is accurate and hopefully helpful, but it=s not meant to be legal advice.  No attorney can give you good advice without knowing the details of your individual situation.  No attorney-client relationship is created until all parties have explicitly agreed.