Maryland Disclosure & Disclaimer: what you must tell buyers.

Every Maryland home seller has to deliver one of two forms before signing a contract. The form you pick changes your legal exposure, but it does not let you hide what you know. Here's how it actually works under §10-702.

1. Where the rule comes from

Maryland Real Property §10-702 requires the owner of certain single-family residential property to furnish the buyer with either a Residential Property Disclosure Statement (disclosing known conditions) or a Residential Property Disclaimer Statement (selling "as is" with limited representations) before a purchase contract is signed [1][2].

The form is published by the Maryland Real Estate Commission and is the same statewide document — there isn't a separate Anne Arundel or Baltimore version [2][3]. Your agent or attorney will provide the current MREC form at listing.

2. The two paths: Disclosure vs Disclaimer

Path A — Residential Property Disclosure Statement

You answer a long list of yes / no / unknown questions about the condition of the home (roof, HVAC, plumbing, electrical, structure, water/sewer, hazardous materials, etc.). The buyer relies on those answers in deciding to make and complete an offer.

Path B — Residential Property Disclaimer Statement

You state that you are selling "as is" and make no representations or warranties as to the condition of the property or any improvements, except as otherwise provided in the contract [2]. You skip the long checklist.

3. Latent defects always require disclosure

§10-702 defines a latent defect as a material defect that a buyer would not reasonably be expected to discover by a careful visual inspection AND that would pose a direct threat to the health or safety of the buyer, an occupant, or a tenant [1].

If you know about a latent defect, you must disclose it in writing whether you choose the Disclosure or the Disclaimer path. Hiding a known latent defect can expose a seller to rescission, damages, and potential fraud claims [1][2]. This is the rule that catches sellers off guard most often — your agent's job is to ask the questions that surface latent issues before listing, not bury them.

4. What the disclosure form covers

If you elect the Disclosure path, the MREC form asks about the seller's actual knowledge in these categories [2][4]:

• Water supply & sewer systems (public, well, septic; recent inspections, known issues)
• Insulation
• Structural systems (foundation, roof, walls, floors)
• Plumbing system (leaks, water pressure, water heater age)
• Heating & air conditioning
• Electrical system (panel, knob-and-tube, aluminum wiring)
• Septic systems
• Wood-destroying insects
• Hazardous or regulated materials: asbestos, lead-based paint, radon, underground storage tanks (oil tanks especially common in older MD homes), licensed landfills nearby
• Zoning and use violations known to the seller
• Other material defects in the property or improvements

Answer "unknown" honestly. The form is about your actual knowledge — you are not required to investigate, and answering "unknown" when you genuinely don't know is the right answer.

5. Lead-based paint (pre-1978 homes)

If your home was built before 1978, federal law (Residential Lead-Based Paint Hazard Reduction Act of 1992, commonly called the Title X disclosure) adds a separate, mandatory lead-based paint disclosure on top of §10-702 [5]. You must:

• Disclose any known lead-based paint or hazards in the home.
• Provide the EPA-approved pamphlet "Protect Your Family From Lead in Your Home."
• Give buyers a 10-day window to inspect for lead-based paint (unless mutually waived).
• Include the federally-required lead warning statement and acknowledgment in the contract.

In Maryland, this catches a huge share of Baltimore City and inner-ring-suburb housing stock. Don't skip it.

6. When §10-702 doesn't apply

The statute exempts a handful of transfer types [1]. The most common exemptions:

• New construction sold by the builder.
• Transfers by court order, foreclosure, deed in lieu, or transfer pursuant to bankruptcy.
• Transfers between spouses, parent/child, or co-owners.
• Transfers by a fiduciary in the course of administering an estate or trust (limited circumstances).

Even when §10-702 does not apply, common-law fraud and concealment rules still do. The federal lead disclosure also still applies to most pre-1978 sales regardless of §10-702 status.

7. What you should NOT put on the form

This is where listing agents earn their fee — keeping sellers out of Fair Housing trouble:

• Never describe neighbors or surrounding residents in any way that touches a protected class (race, color, religion, sex, handicap, familial status, national origin, sexual orientation, gender identity). It is illegal under the federal Fair Housing Act and Maryland's fair housing law.
• Never describe the "character" of the neighborhood in ways that signal preference. "Quiet" can be neutral; "established" or "exclusive" can be steering language.
• Don't speculate about conditions you don't know. Use "unknown" — that's what the box is there for.
• Don't editorialize. The form is for facts about the property, not opinions about the buyer market.

This guide summarizes Maryland Real Property §10-702 in plain language and is general information for real estate consumers — it is not legal advice. The statute and the regulatory form are revised periodically; consult the current MREC form and a licensed Maryland real estate attorney for any specific transaction. Evan Kundrat is a Maryland-licensed real estate salesperson (Lic. #5003434) at Keller Williams Flagship of Maryland (Designated Broker: Barry Hess, Lic. #517943). Equal Housing Opportunity.

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