Seller disclosure in Maryland: disclosure or disclaimer form

Is a disclosure form required by law?

Yes, but the seller has a choice. Section 10-702(c) requires the seller to complete and deliver one of two statements, both on a single form from the Maryland Real Estate Commission:

• Disclosure statement. The seller lists the defects and other facts about the property that the seller actually knows.
• Disclaimer statement. The seller says the property is sold “as is,” with no representations or warranties about its condition, except what the contract says.

The disclaimer is not a free pass. Even an “as is” seller must disclose any latent defects the seller actually knows about (§ 10-702(d)). The statute defines a latent defect as a material defect that a buyer would not find by a careful visual inspection and that threatens the health or safety of the buyer or another occupant.

The seller does not have to hire an inspector. The statute says a vendor is “not required to undertake or provide an independent investigation or inspection” (§ 10-702(e)(4)).

What does the form cover?

The statute lists the topics the form must address, to the extent the seller knows of defects or other information (§ 10-702(e)(2)):

• Water and sewer systems, including the source of household water and any treatment system
• Insulation
• Structural systems: roof, walls, floors, foundation, basement
• Plumbing, electrical, heating and air conditioning
• Infestation by wood-destroying insects
• Land use matters
• Hazardous or regulated materials, including asbestos, lead-based paint, radon, underground storage tanks and licensed landfills
• Smoke alarms: whether they sound in a power outage, whether they are over 10 years old, and whether battery units are sealed and tamper resistant
• Carbon monoxide alarms, if the home burns fossil fuel for heat, ventilation, hot water or clothes drying
• Any other material defect the seller knows of

The form must also tell buyers that the statement is the seller’s representation, not the broker’s, and that it is no substitute for an independent home inspection (§ 10-702(e)(3)). The Commission’s form carries those notices. As of its August 19, 2026 meeting, the Commission reported that a revised form had been approved and was being uploaded into the State regulations (COMAR); check the Commission’s forms page for the version in use.

Which sales are exempt?

Section 10-702 applies only to single-family residential property with four or fewer units. It does not apply to (§ 10-702(b)):

• The first sale of a home never occupied, or one with a certificate of occupancy issued within 1 year before the contract
• Transfers exempt from the State transfer tax (except land installment contracts and options to purchase)
• Sales by a lender that took the home by foreclosure or deed in lieu
• Sheriff’s sales, tax sales, and sales by foreclosure, partition or court-appointed trustee
• Transfers by a fiduciary administering an estate, guardianship, conservatorship or trust
• Homes the buyer will convert to non-residential use or demolish
• Sales of unimproved land

For the transfer tax rules, see transfer tax in Maryland.

What happens if the seller does not deliver it?

The buyer’s main remedy is the right to cancel. The table shows how § 10-702(f)-(k) works.

Example: a buyer signs a contract on October 1 and receives the form on October 10. If none of the lender cut-offs above has occurred, the buyer may cancel through October 15 and get the deposit back.

The buyer must date and sign a receipt, which is included in or attached to the contract (§ 10-702(f)(4)). A contract cannot waive these rights, and every contract must carry a conspicuous notice of them (§ 10-702(k)(1), (l)). Listing and buyer’s agents must tell their clients about the rights; an agent who does so has no further duties under the section (§ 10-702(m)).

The text I read names rescission as the statutory remedy and lists no fines. It also protects a seller from liability for an error that came from information outside the seller’s actual knowledge, from a government agency, or from a licensed expert’s report (§ 10-702(i)(2)). Whether other claims exist for a known defect that was hidden is a question for a lawyer.

Federal lead-based paint rule (homes built before 1978)

A separate federal rule applies to housing built before 1978, even where § 10-702 does not. According to the EPA, the seller must:

• Disclose any known lead-based paint or lead hazards
• Give the buyer the “Protect Your Family From Lead In Your Home” pamphlet before the buyer is bound
• Allow a 10-day period for a paint inspection or risk assessment, which the parties can shorten or the buyer can waive
• Include a Lead Warning Statement in or with the contract
• Keep a signed copy of the disclosures for 3 years