Legal Question in Real Estate Law in Maryland
Contract dispute resulting in small claims court
In June, 2003, we sold a home in MD. The following day we moved to MI where we now permanently reside. Six weeks afterwards we received a certified letter stating that the buyer of the home in MD spent $700 to clean out a shed on the property and wanted us to pay citing the ''broom clean'' in the contract. We responded that the cost was out of line and that we could have done it for less if we had know it was necessary. Since there had been a walk-through 4 hrs. before the closing and nothing was said then or later, we did not feel responsible for these costs. We have now been informed that he is taking us to small claims court in MD. The real estate contract states that mediation is to be the first step of any dispute. What are our options? Should we offer to make a payment while still denying any legal responsibility for the total amount since it was incurred without our knowledge/consent? Thenk you for your assistance.
2 Answers from Attorneys
Re: Contract dispute resulting in small claims court
You should not owe them anything, as the contract merged into the deed at settlement. However, for $700, it may not be worth fighting.
Re: Contract dispute resulting in small claims court
The warranty deed and the contract of sale merge upon consumation of settlement. Unless the deed picks up any outstanding obligations, all matters are settled between the parties. This settles the issue as it lays from a contractual perspective.
An equity claim may still be brought. If your advesary is able to aptly plead the matter, this may bring the issue into a grey area. Settlement negotiation cannot be used against you; however, there is a fine line between settlement and acceptance of a contractual obligation.
Essentially, the matter does not warrant the involvement of an attorney. However, if you would like the matter presented for "settlement" then my services are available at a very reasonable fee.
Joe Holthaus
(410) 799-9002
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