Legal Question in Real Estate Law in Maryland

The answer to your question depends upon whether the problem you described was discoverable by you (or an inspector you hired) during the period between the signing of the purchase contract and settlement. It is hard to believe that the prior owner was not aware of this problem, especially since you were able to discover it almost immediately after taking occupancy. Presumably you noticed or could have noticed water stains on the carpet during your pre-settlement inspections, but the question is should that have alerted you or your inspector to the cause of the stains. If not, this is known as a latent defect, and you could bring a suit against the prior owner for the cost of rectifying the problem. However, be aware that these are not easy cases, and you have to weigh the costs of litigation against the cost of repairing the problem.