Legal Question in Real Estate Law in Maryland

The seller can elect to make a disclosure as to property condition, in which case the seller is responsible for its accuracy, or they can simply put the property up for sale in its "as is" condition. However, even in the latter case, the seller must disclose latent defects, defined as conditions of which they are aware but which would not be apparent to a buyer upon inspection. So in your situation re the flooding, if the inspector discovered it you would have the option of backing out of the contract assuming you exercised that right in compliance with the time requirements for doing so in the contract's inspection clause. The realtor would not necessarily have known about any condition not disclosed to them by the seller. If they did know and failed to disclose it, you might want to file a complaint with the realtor board in that county.