Legal Question in Real Estate Law in Maryland

Are HUD home sales subject to Maryland Real Property section 10-702 (i.e. the seller must disclose information about latent defects in the property)?

I recently purchased an "as-is" home from HUD. I was provided with a property condition report. The reported stated the fact that the copper water lines were missing from the basement and they were unable to test the hot water heater because the water could not be turned on. However, the report did not mention the leaking underground water line that apparently floods the yard (and the neighbors yard) when the water is turned on. Is this something (a latent defect?) that should have been disclosed to me prior to sale? The neighbors have informed me that this leak has been recurring problem; having been repaired and breaking again shortly there-after.


Asked on 6/08/15, 5:40 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

If you had taken title from the previous occupant, who would presumably have been aware of the flooding problem, there would have been a duty to disclose. However, HUD was probably unaware of this, and it would be hard to establish that they should have been. That's why they sell on an "as-is" basis. I suggest you contact HUD to see if you have any recourse.

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Answered on 6/08/15, 10:38 am


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