Legal Question in Real Estate Law in Maryland
Residential Property Disclosure and Disclaimer Statement
I purchased a home approximately 6 months ago. Recently I noticed a black mark on the wall. When I observed closer, I noticed it had been patched over several times. I removed some of the drywall to discover a copper pipe was leaking. The sellers signed the MD Residential Property Disclosure Statement rather than the Property Disclaimer Statement indicating they had no actual knowledge of defects. However, it�s obvious they tried to cover up the damage. I hired a home inspector prior to purchasing the property, and he did not find this defect. I don�t want to invest in pursuing a case when it may be less expensive for me to fix the pipe and have the drywall replaced out of my own pocket. I would like to know:
1. Before I file a claim, should I contact the seller and/or the real estate agents giving them an opportunity to resolve the issue?
2. My legal rights as a purchaser under the Section 10-702 MD Real Property Article if the sellers elected to sell the property �as is�.
3. If I hire a contractor to estimate when the damage occurred (existing prior to my purchase), am I obligated to advise them that I might file a claim against the sellers?
1 Answer from Attorneys
Re: Residential Property Disclosure and Disclaimer Statement
To answer your questions:
1)Yes, I would bring this to the seller's attention. However, do not be surprised when the seller professes total ignorance of the condition. It might be useful to get your contractor involved first regarding the "duration" issue. If he is confident that this condition must have been prevalent long enough that the seller would have had to notice the damp wall, you can point that out to the seller.
2)The seller has a duty to disclose known defects which are latent--defined as defects not readily discernible by the buyer. (This raises the question of why your home inspector didn't notice the patched wall and recognize that as a clue that there was a leak problem, but presumably the black mark wasn't there at the time of the inspection.)
This law applies even in "as is" contracts.
3) You don't have to discuss your plans with the contractor, but if he supports your theory, you ought to ask him if he would be willing to state that for the record (including testimony). Presumably you are going to get this fixed whether or not you pursue the seller, so it's really not an "either/or" situation. Once you repair the damage, you can decide whether to pursue the seller if he stonewalls you. If your damages are less than $5000, you can sue him in small claims court.
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